Rent vs. Buy — San Diego

Over your hold, after selling costs and taxes

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Price-to-rent — — i

Own, all-in / mo i

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Rent / mo

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Owning tax benefit / mo i

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Renter invests upfront i

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Your numbers

Wealth over the hold

Buy (equity if sold) Rent (invested)

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Year by year

Yr	Own net /mo	Rent /mo	Buy wealth	Rent wealth	Ahead

How this works

Both paths start with the same cash. The buyer spends the down payment plus closing costs on the house; the renter invests that same lump and keeps investing a share of whatever they save each month, growing it at your assumed return. The buyer's wealth is the equity they'd walk away with if they sold that year — appreciated value minus selling costs, remaining loan, and any capital-gains tax above the primary-residence exclusion ($500k married, $250k single). Property tax grows at California's 2% Prop 13 cap. The tax benefit compares what you could deduct as an owner against what you'd take as a renter, so it only counts the part that clears the standard deduction. The buyer starts behind by the transaction costs; appreciation is what closes that gap.

Estimates for comparison, not tax or financial advice. Verify against your own situation before deciding.