Owning Versus Renting In 10 California Cities: Which Is Cheaper?

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California is the nation’s most expensive housing market, with four of its cities taking up the top five spots in a SmartAsset list of the country’s priciest homes. While owning a home feels prohibitive in much of the country, it is doubly so in the Golden State. Still, renting doesn’t offer much of a bargain; California is the second most expensive city to rent nationwide. 

But are there any deals to be found, perhaps in some of the state’s lesser populated cities? Below is a comparison of mortgage payments and rents across California’s 10 most populated cities. While renting still comes cheaper than home ownership, there are a couple of regions where the cost of ownership is close enough to nearly make it worth it. 

Los Angeles

• Total population: 3.8 million
• Median household income: $76,244
• Average home value: $947,000
• Average monthly rent: $2,800
• Average monthly mortgage: $5,213
• Cheaper option: Renting

San Diego

• Total population: 1.4 million
• Median household income: $98,657
• Average home value: $1,003,000
• Average monthly rent: $3,000
• Average monthly mortgage: $5,500
• Cheaper option: Renting

San Jose

• Total population: 970,000
• Median household income: $136,000
• Average home value: $1,424,000
• Average monthly rent: $3,000
• Average monthly mortgage: $7,625
• Cheaper option: Renting

San Francisco

• Total population: 809,000
• Median household income: $136,700
• Average home value: $1,262,000
• Average monthly rent: $3,285
• Average monthly mortgage: $6,806
• Cheaper option: Renting

Fresno

• Total population: 545,000
• Median household income: $63,000
• Average home value: $379,920
• Average monthly rent: $1,600
• Average monthly mortgage: $2,346
• Cheaper option: Renting

Sacramento

• Total population: 526,000
• Median household income: $79,000
• Average home value: $479,000
• Average monthly rent: $1,975
• Average monthly mortgage: $2,847
• Cheaper option: Renting

Long Beach

• Total population: 449,000
• Median household income: $79,000 
• Average home value: $828,000
• Average monthly rent: $2,200
• Average monthly mortgage: $4,611
• Cheaper option: Renting

Oakland

• Total population: 436,000
• Median household income: $94,000
• Average home value: $751,000
• Average monthly rent: $2,300
• Average monthly mortgage: $4,222
• Cheaper option: Renting

Bakersfield

• Total population: 413,000
• Median household income: $73,000
• Average home value: $388,000
• Average monthly rent: $1,900
• Average monthly mortgage: $2,387
• Cheaper option: Renting

Anaheim

• Total population: 340,000
• Median household income: $88,000
• Average home value: $909,000
• Average monthly rent: $2,670
• Average monthly mortgage: $5,021
• Cheaper option: Renting

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