Lansner: Renting a Condo Beats Buying by 42% in SoCal

Jonathan Lansner, a business columnist for the Southern California News Group, calculated that renting is now substantially cheaper than buying a condominium in Southern California. His analysis, published in early November 2026, compares monthly rental estimates from Zillow with total ownership costs for condos in six local counties. The data shows that the savings for tenants have widened considerably compared to previous years.

The monthly cost for a typical tenant in Southern California stood at $2,860 in July 2026. This figure represents an average annual increase of 4.5% over the past ten years. In contrast, a theoretical buyer of a condominium valued at $660,000 would face a monthly expense of $4,940. This ownership cost includes the mortgage payment, property taxes, home insurance, and association fees. The estimated monthly cost for condo owners has risen at an annual rate of 7.8% since 2016.

The gap between these two costs reached 42% in favor of renters as of July 2026. Ten years prior, the advantage for renting was only 21%. The rise in ownership costs is attributed to higher condo sale prices and the disappearance of historically low mortgage rates. Lansner noted that while a single-family home often provides more space than a rental, the condo comparison offers a more direct financial test for those seeking similar apartment-style living.

Projected savings for renters extend over the long term. If local rents continue to rise at the same pace observed over the last decade, it will take 12 years for the current rental price to match the fixed monthly purchase costs of July 2026. Through 2038, the cumulative savings for a renter would approximate $155,000. This calculation assumes that an owner's taxes, insurance, and association fees remain static. The buying scenario also requires a down payment of $66,000, which is not included in the monthly comparison.

Condo owners do hold assets that gain in value. The median-priced condominium in Southern California increased by 62% over the last ten years, rising from $408,000 to $660,000. Owners may also benefit from tax deductions on mortgage interest, which can lower effective monthly costs. However, the value of the same condo benchmark was flat during the previous decade, a period that included the Great Recession. The financial edge for renters is most pronounced in the current market due to high purchase prices.

Affordability metrics indicate that buying a condo requires a much higher income today than in the past. A household earning $180,000 is needed to keep July 2026 monthly condo payments at one-third of income. In 2016, an income of just $84,000 was sufficient for the same ratio. This shift reflects the increased burden of ownership in the region.

Sales data supports the hesitation of potential buyers. In the year ending in July 2026, 36,310 condos were sold across Southern California. This volume represents the fourth slowest pace in data reaching back to 2005. The three slowest periods occurred in the three months preceding July. Sales in July were 30% slower than the 21-year average for the region's condo market.

The July sales volume was also 4% below the lowest levels recorded during the Great Recession. These figures suggest that many house hunters are finding that condo ownership does not offer favorable financial terms in the current economic climate. The data points to a market where renting remains a distinct financial advantage over buying for many residents in the area.