With the housing market on its way to prosperity again, consumers are contemplating whether it’s more beneficial to buy a property now or continue renting. To assist with this decision, C.A.R. (California Association of Realtors) has looked at the costs and benefits of renting versus owning property in California and 8 of its local regions over a 7-year period. The costs of buying include the monthly mortgage payment, insurance, taxes, and improvements and repairs. These costs were offset by the benefits of buying: mortgage interest and property tax deductions, and investment appreciation. The costs of renting include the monthly rent payment and renter insurance, which were offset by the benefits of renting: the appreciation on investing the down payment in the stock market.
For the State of California as a whole, statistics show that consumers can save 32% per month by buying a property. Home buyers in Sacramento will save 34% monthly and 12% in San Francisco. However, buying is not the best solution everywhere. You are better off renting in Alameda and Santa Clara Counties, with monthly rent savings ranging from 711%.