The debate over renting vs. owning has long posed a challenge for households in California. Arguments have morphed in recent years as home prices and mortgage rates soared beyond the increasing rents. To illustrate the complexities, we’ve created a hypothetical rent vs. buy scenario to track housing finances over a 30-year period. However, the math doesn’t account for the intangibles: the flexibility of renting compared to the stability of owning.

HOW MONTHLY COSTS COMPARE

Key in any housing calculation is monthly cost. Our example estimates California house rent today at $4,000 a month vs. buying a $900,000 house with a 10% down mortgage at 6.5% plus property taxes, insurance, association fees, and repairs. The scenario assumes costs grow with historical inflation and the mortgage rate

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