Can Buying a Home Save You Money?

As of January 2017, average apartment rent in San Diego, CA is $2113.

Rent is more than two times the national average.

Here are some sobering statistics on the average rent in San Diego, California. Below is local Carlsbad area rental prices.

  • Housing costs in general are 102 percent higher than the national average.
  • The overall average rent in San Diego is $2,357 per month in the metro area.
  • A studio will be around $1,350 per month.
  • A one-bedroom apartment can average about $1,552 per month.
  • Two-bedroom apartments average $1,919 per month.
  • The median home value index in the metro area is $534,600.
  • San Diego locals will spend an average of $11,268 per year (or $939 per month) for one adult on housing, according to MIT’s living wage index.

Paying A Mortgage Is Cheaper Than Renting!

One reason homeownership is competitive is because mortgage interest rates are still historically low. The average U.S. 30-year fixed mortgage rate is 3.56%, according to Bankrate.com.

A key roadblock to buying a home is the inability of many would-be buyers to afford the down payment, which is typically 20% of the purchase price. If the size of a down payment is a stumbling block for you, you may be able to reduce the size of the down payment. Just remember, with a down payment of less than 5% of purchase price, you’ve typically got to take on mortgage insurance, which boosts the size of your monthly mortgage payments.

In the state-by-state comparison California shows its more expensive to rent that to own. Overall the answer for San Diego is: YES! Buying a home can save you money compared to renting.

Want to know the prices of a certain neighborhood?
The Alan Shafran Group can help you find the home of your dreams.
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