February 22, 2017
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February 24, 2017

San Diego Rent is more than two times the national average. Can buying a home save you money?

The average rent in San Diego is around $2,400/month

Here are some sobering statistics on the average rent in San Diego, California:

  • 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.

    That’s high.

    Yes, it’s high. Renting in San Diego can be difficult because it’s a landlord’s market. It’s a pretty desperate situation because of the vacancy rates, which spiked up to 4.1 percent in early 2015 and then dropped back down to 2.6 percent. These low rates mean there are fewer rooms to rent available and, as a result, it’s a more competitive market.

    A big portion of your paycheck will likely go toward rent.

According to Forbes:  Buying A Home Is 45% Cheaper than Renting

 But when is this true? Consider the following 3 factors:
  1. Can you qualify for a mortgage at the best rate available?
  2. Which tax bracket are you in, and do you itemize your deductions?
  3. How long will you stay in your home?

To calculate whether renting or buying costs less, we assume people can get a low mortgage rate of 3.5%, itemize their federal tax deductions; Are in the 25% tax bracket, and will stay in their home for seven years.

Will buying a home save you money? Don’t wait, send Camille a message and find out!