It’s a common thought that crosses people’s minds when paying rent each month: “Am I just covering my landlord’s mortgage?” In many cases, the answer is yes. But that doesn’t mean renting is always a bad idea. In San Diego, where housing prices are high and the market is always competitive, deciding whether to rent or buy depends on your lifestyle, finances, and long-term goals.
Renting in San Diego County
Renting gives you flexibility. If you’re not ready to commit to one neighborhood or you’re still figuring out where work, family, or life might take you, renting is often the more practical option. For example, the average rent for a one-bedroom apartment in San Diego hovers around $2,700 per month. That’s a big monthly expense, but for some, it makes sense because it doesn’t tie you down to a mortgage, property taxes, or the costs of maintaining a home.
We once worked with a client who was torn between renewing their lease or buying a condo. Their rent was around $3,000 a month, which felt like a lot, but they valued the freedom of being able to move in a year or two if their job changed. In that situation, renting was the right choice for them, even if their landlord was essentially using their rent money to help cover the mortgage.
Buying in San Diego County
On the other hand, buying a home builds equity over time. Let’s say you’re interested in a starter home in North County San Diego. The median home price in the area is around $900,000. With today’s interest rates, your monthly mortgage payment could be somewhere in the $4,800 to $5,200 range, depending on your down payment and loan terms. That’s significantly more than renting, but a portion of that payment goes toward your mortgage principal, which builds ownership in your home.
Buying also comes with other financial responsibilities. You’ll need to budget for property taxes (roughly 1.25% of the home’s value per year in San Diego County), insurance, and maintenance. That means owning a $900,000 home could cost about $11,000 per year in property taxes alone. So while buying allows you to invest in your future, it requires a level of financial stability and commitment that not everyone is ready for.
The Emotional Side of the Decision
It’s not always about dollars and cents. Some people love the idea of homeownership and the stability it brings. Owning a home means you can paint the walls any color you like, renovate the kitchen, or plant a garden without asking for permission. Others enjoy the peace of mind that comes with renting, knowing that if the water heater breaks, it’s the landlord’s responsibility, not theirs.
In San Diego, where job opportunities and family needs can shift, flexibility is often just as important as financial planning. Renting may be the better option if you see yourself moving within the next few years. But if you’re ready to put down roots and invest in your future, buying could be the right move.
So, Are You Just Paying the Landlord’s Mortgage?
Technically, yes… your rent likely helps cover your landlord’s mortgage, and in some cases, even provides them with profit. But that doesn’t mean you’re losing out. What you’re really paying for is flexibility, convenience, and the ability to live in a place without taking on long-term financial obligations.
Buying a home, on the other hand, means you’re paying your own mortgage, which helps build equity over time. But that comes with higher upfront costs, ongoing responsibilities, and less flexibility if your circumstances change.
Whether you’re renting or buying in San Diego, there’s no one-size-fits-all answer. Renting may feel like you’re paying your landlord’s mortgage, but for many, it’s the right choice for their stage of life. Buying builds equity and can be a smart long-term move, but it requires financial readiness and a willingness to commit.
If you’re curious about whether homeownership is realistic for you, it’s worth having a conversation with a trusted real estate professional. Sometimes renting makes the most sense, and other times buying is the right call. At the end of the day, the best decision is the one that aligns with your goals, lifestyle, and financial comfort level.
