Conversational Question:
How do San Diego rent prices compare to mortgage payments today?

Short Answer:
In San Diego right now, average rent for typical apartments often falls below the mortgage payment on a median-priced home, especially with current mortgage rates around 6% to 6.3%. But while rent may be cheaper monthly, buying builds equity and long-term financial value that renting does not.

Why This Comparison Matters

Whether you’re thinking about selling your home later, buying your first home, or deciding if you should keep renting in San Diego, understanding the real cost differences matters.

San Diego’s housing market is one of the most expensive in the United States. High demand, limited inventory, and strong local wages keep both rents and home prices elevated.

Knowing how rent stacks up against a mortgage payment gives you clarity on:

• Monthly cash flow
• Long-term wealth building
• Affordability thresholds
• How far your paycheck goes

Let’s break those numbers down.

Average Rent Prices in San Diego Today

Depending on the data source, San Diego rents vary slightly, but the overall picture is clear—rent is above the national average and often high compared to many U.S. cities.

According to recent rental data:
• Average rent in San Diego is around $2,938 per month.
• Some sources report a slightly lower average near $2,522 per month.
• Studio and one-bedroom rents still hover in the $2,000 to $3,000 range.

In neighborhoods like Downtown San Diego, median rents can exceed $3,000 a month.

When you compare this to the national average rent, which is roughly $1,900 to $2,000 per month, San Diego clearly stands out for higher rental costs.

What Mortgage Payments Look Like in San Diego

To compare rents to mortgage payments, we estimate typical housing costs when buying today.

Average Home Price

Recent market data shows the typical home in San Diego is valued near $970,000.

Mortgage Rates

Current 30-year fixed mortgage rates—based on national averages and local forecasts—are around 6.1% to 6.3% as of early 2026.

If you use a standard down payment (for example, 20%), a rough monthly mortgage payment on a $970,000 home — including principal, interest, taxes, and insurance — will often exceed $4,000 per month.

This is significantly higher than the average rent figures, especially when including taxes and other ownership costs.

Side-by-Side: Rent vs. Mortgage

Here’s a simplified comparison of typical monthly costs:

Key takeaway: On the surface, rent frequently costs less per month than owning a median-priced home—all else equal.

But Monthly Cost Isn’t the Whole Story

Rent may appear cheaper month-to-month, but owning changes how your money works over time.

1. Renting Does Not Build Equity

Every dollar you pay in rent is gone forever. You gain shelter, but nothing else of value.

2. Buying Builds Ownership

With a mortgage, part of your monthly payment goes toward building equity in your home. That’s an asset you can sell or borrow against later.

3. Rates and Payments Change Over Time

Mortgage rates fluctuate. If rates fall later in 2026, buyers refinancing a few years after purchase may see lower payments.

4. Property Taxes and Insurance Vary

Ownership includes property tax, insurance, and maintenance, which renters don’t pay directly but are indirectly included in rent.

Local Insights That Impact the Comparison

Neighborhood Patterns

Rent and ownership costs vary by area. For example:
• University City, Pacific Beach, and Carmel Valley tend to command higher rents.
• Inland or less central locations can be a bit more affordable, both for rent and owning.

Rent Trends

San Diego saw rare rent declines recently, the first in many years. That may give renters some leverage.

Ownership Affordability

Despite rate dips, median home prices still challenge average earners. A recent analysis found only a small percentage of homes are truly affordable for median incomes.

Who Benefits Most from Renting vs. Buying Now

Renting Might Make Sense If:

• You plan to stay less than 3 years
• You want flexibility without maintenance responsibilities
• You’re saving for a larger down payment

Buying Might Make Sense If:

• You plan to stay in San Diego long-term
• You want to build equity and long-term wealth
• You prefer stability in housing costs
• You can afford upfront costs and qualify for favorable financing

The rent vs mortgage “break-even” point often hinges on your timeline. Buying makes more financial sense the longer you stay and participate in local market growth.

Compliance and Professional Context

This article is informational and not financial or legal advice.

Real estate decisions involve considerations like tax strategy, investment planning, and loan qualification. You should consult a CPA, financial advisor, or licensed mortgage professional for advice tailored to your situation.

Peraza Real Estate adheres to Fair Housing laws, RESPA requirements, and ethical standards from the National Association of REALTORS®.

What It All Means for You

Right now in San Diego:

• Rent averages roughly $2,500–$3,000+ per month depending on unit and neighborhood.
• A mortgage payment on a median-priced home often runs above $4,000 per month.
• Rent may be cheaper monthly, but buying builds equity and long-term financial value.

Choosing between renting and buying should go beyond monthly cost—look at your goals, stability, timeline, and how owning fits into your life.

Talk With Peraza Real Estate About Your Best Path Forward

Whether you’re thinking about continuing to rent, buying your first home, or planning to sell a home later, your best decision comes from real, local insight.

Peraza Real Estate helps San Diego residents analyze real numbers—not just general advice—so you can choose the path that suits your goals.

Reach out to schedule a personalized consultation today.