Rent vs Buy in San Francisco, CA: Should You Rent or Buy a Home?
In San Francisco, CA, the median home is worth $1,394,500 and a typical 3-bedroom rental costs $3,469 a month. With the latest 7.24% average mortgage rate (2026-10-29), renting and investing the difference comes out ahead after 20 years by $1,930,160 ($1,177,920 in today's dollars). Buying doesn't catch up within 30 years at today's rate, and the same at 6% or 5%.
Data: U.S. Census Bureau ACS 2020–2024 · Mortgage rate 7.24% (Freddie Mac, 2026-10-29) · Updated 2026-11-01 · How we calculate
Calculator
Start typing a county, city or ZIP code, then pick it from the list.
Using local Census figures for San Francisco, CA.
$279,000
30-yr avg 7.24% on 2026-10-29
$10,058 a year
Fine-tune assumptions (growth, inflation, costs, taxes)
After 20 years in San Francisco, CA
Renting comes out ahead by $1,930,160
$1,177,920 in today's dollars. At these numbers buying doesn't catch up within 30 years. Buying wins over 20 years if comparable rent is above $6,909/mo (you entered $3,469).
If you buy
- Home value
- $2,775,755
- Mortgage still owed
- −$648,110
- Selling costs
- −$166,545
- Tax on home sale
- −$138,354
- You walk away with
- $1,822,746
If you rent and invest
- Cash not spent on buying
- $320,850
- Monthly savings invested
- $1,598,588
- Growth at 6.0%, after tax
- +$1,833,468
- You walk away with
- $3,752,906
Both cards are in year-20 dollars.
Monthly cost in year 1
- Mortgage (principal + interest)
- $7,606
- Property tax
- $838
- Home insurance
- $814
- Maintenance
- $1,163
Principal isn't really a cost — it becomes equity. The comparison that matters is the money you never get back, below.
What your numbers mean
In the first year, owning costs about $10,420 a month: $7,606 mortgage payment, $838 property tax, $814 insurance, $1,163 upkeep. Renting a comparable home costs $3,469. So the renter has $6,951 a month left over, and invests it — on top of the $320,850 down payment and closing costs they never had to spend.
Rent rises 3.5% a year, so within 20 years it never catches up with the cost of owning (taxes, insurance and upkeep grow with the home's value too).
After 20 years the home is worth $2,775,755 (growing 3.5% a year from $1,395,000). You still owe $648,110 on the mortgage and pay about $166,545 to sell plus $138,354 capital gains tax, leaving $1,822,746 in equity.
The renter's investments, earning 6.0% a year, grow to $3,752,906 after 15% tax on the gains. That only happens if the money really is invested every month — renting and spending the difference makes buying the better choice almost everywhere.
Renting leaves you $1,930,160 richer after 20 years. With inflation at 2.5% a year, a dollar then buys what 61 cents buys today, so the gap is worth $1,177,920 in today's money.
The result holds up: none of the alternative scenarios below (faster or slower price growth, a lower rate, different investment returns) changes which option wins.
Total cost over 20 years
| Where the money goes | Amount |
|---|---|
| Down paymentequity | $279,000 |
| Mortgage principalequity | $467,890 |
| Closing costs | $41,850 |
| Mortgage interest | $1,357,435 |
| Property tax | $284,436 |
| Insurance | $276,151 |
| Maintenance | $394,502 |
| Selling costs | $166,545 |
| Total paid to buy and own | $3,267,808 |
| Money you never get back | $2,659,272 |
| Rent | $1,177,227 |
| Renter's insurance | $4,598 |
| Money you never get back renting | $1,181,825 |
“Equity” rows are savings locked in the home, not costs. Figures are in future (nominal) dollars.
What would change the answer?
Nobody knows future home prices, rents or market returns. Each row below reruns your exact numbers with just one thing changed, so you can see which assumptions matter. Rows marked “Answer flips” change the winner.
| What if… | Who comes out ahead, and by how much |
|---|---|
| Nothing changes — your numbers, staying 20 years | Renting ahead by $1,930,160 |
| Home prices grow 2% a year instead of 3.5% | Renting ahead by $2,304,544 |
| Home prices grow 5% a year instead of 3.5% | Renting ahead by $1,412,130 |
| Your mortgage rate is 6.24% instead of 7.24% | Renting ahead by $1,581,235 |
| Investments earn 4% a year instead of 6% | Renting ahead by $1,135,377 |
| Investments earn 8% a year instead of 6% | Renting ahead by $2,995,350 |
| Rent rises 4.5% a year instead of 3.5% | Renting ahead by $1,753,320 |
| You stay 15 years instead of 20 | Renting ahead by $1,249,821 |
| You stay 25 years instead of 20 | Renting ahead by $2,840,799 |
Year-by-year breakdown
| Year | Home value | Loan balance | Owning / yr | Rent / mo | Net worth (buy) | Net worth (rent) | Difference |
|---|---|---|---|---|---|---|---|
| 1 | $1,443,825 | $1,105,178 | $125,039 | $3,469 | $252,018 | $422,370 | −$170,352 |
| 2 | $1,494,359 | $1,093,545 | $126,221 | $3,590 | $311,152 | $528,945 | −$217,793 |
| 3 | $1,546,661 | $1,081,042 | $127,445 | $3,716 | $372,819 | $640,873 | −$268,054 |
| 4 | $1,600,795 | $1,067,603 | $128,711 | $3,846 | $437,143 | $758,467 | −$321,323 |
| 5 | $1,656,822 | $1,053,159 | $130,021 | $3,981 | $504,254 | $882,058 | −$377,803 |
| 6 | $1,714,811 | $1,037,633 | $131,378 | $4,120 | $574,290 | $1,011,998 | −$437,708 |
| 7 | $1,774,830 | $1,020,944 | $132,782 | $4,264 | $647,395 | $1,148,660 | −$501,264 |
| 8 | $1,836,949 | $1,003,007 | $134,235 | $4,414 | $717,742 | $1,292,437 | −$574,695 |
| 9 | $1,901,242 | $983,727 | $135,739 | $4,568 | $788,393 | $1,443,749 | −$655,356 |
| 10 | $1,967,785 | $963,004 | $137,295 | $4,728 | $862,284 | $1,603,036 | −$740,752 |
| 11 | $2,036,658 | $940,730 | $138,906 | $4,893 | $939,587 | $1,770,769 | −$831,182 |
| 12 | $2,107,941 | $916,788 | $140,574 | $5,065 | $1,020,484 | $1,947,444 | −$926,960 |
| 13 | $2,181,719 | $891,055 | $142,299 | $5,242 | $1,105,166 | $2,133,586 | −$1,028,420 |
| 14 | $2,258,079 | $863,395 | $144,086 | $5,425 | $1,193,837 | $2,329,753 | −$1,135,916 |
| 15 | $2,337,112 | $833,665 | $145,934 | $5,615 | $1,286,715 | $2,536,535 | −$1,249,821 |
| 16 | $2,418,911 | $801,709 | $147,848 | $5,812 | $1,384,028 | $2,754,558 | −$1,370,531 |
| 17 | $2,503,572 | $767,362 | $149,828 | $6,015 | $1,486,020 | $2,984,484 | −$1,498,464 |
| 18 | $2,591,197 | $730,444 | $151,878 | $6,226 | $1,592,950 | $3,227,014 | −$1,634,064 |
| 19 | $2,681,889 | $690,762 | $153,999 | $6,444 | $1,705,095 | $3,482,892 | −$1,777,797 |
| 20 | $2,775,755 | $648,110 | $156,195 | $6,669 | $1,822,746 | $3,752,906 | −$1,930,160 |
| 21 | $2,872,907 | $602,266 | $158,467 | $6,903 | $1,946,215 | $4,037,889 | −$2,091,675 |
| 22 | $2,973,459 | $552,990 | $160,819 | $7,144 | $2,075,831 | $4,338,726 | −$2,262,895 |
| 23 | $3,077,530 | $500,025 | $163,254 | $7,394 | $2,211,949 | $4,656,353 | −$2,444,405 |
| 24 | $3,185,243 | $443,096 | $165,773 | $7,653 | $2,354,941 | $4,991,763 | −$2,636,822 |
| 25 | $3,296,727 | $381,906 | $168,381 | $7,921 | $2,505,206 | $5,346,005 | −$2,840,799 |
| 26 | $3,412,112 | $316,136 | $171,080 | $8,198 | $2,663,169 | $5,720,195 | −$3,057,026 |
| 27 | $3,531,536 | $245,443 | $173,873 | $8,485 | $2,829,282 | $6,115,512 | −$3,286,229 |
| 28 | $3,655,140 | $169,458 | $176,765 | $8,782 | $3,004,026 | $6,533,205 | −$3,529,178 |
| 29 | $3,783,070 | $87,786 | $179,757 | $9,089 | $3,187,915 | $6,974,599 | −$3,786,685 |
| 30 | $3,915,477 | $0 | $182,854 | $9,408 | $3,381,494 | $7,441,098 | −$4,059,604 |
Difference is positive when buying is ahead. Each row assumes you sell at the end of that year.
Renting vs buying in San Francisco, CA: the local numbers
Median home value
$1,394,500
Median rent, 3-bedroom
$3,469
Price-to-rent ratio
33.5
leans toward renting
Property tax rate
0.72%
The typical owner-occupied home in San Francisco, CA is worth $1,394,500, and the median rent for a 3-bedroom rental is $3,469 a month including utilities. That's a price-to-rent ratio of 33.5 — the home costs 33.5 years of rent — compared with 26.0 across California and 17.5 nationally. By that rule of thumb the local market leans toward renting.
Between the 2015–2019 and 2020–2024 Census surveys, home values here rose 22% and median rent rose 31%. Recent growth is not a forecast: the calculator uses long-run averages by default, and you can change them.
Homeowners pay an effective property tax rate of 0.72%, well below the 0.94% national rate — about $10,054 a year on the median home. Property tax is money a renter never pays directly, so high-tax areas need more appreciation for buying to pay off.
The median household earns $140,970, so the median home costs 9.9× a year's income (4.1× nationally), and 38% of households own their home. Renters spend a median 25% of income on rent.
| Compared with | San Francisco | California | United States |
|---|---|---|---|
| Median home value | $1,394,500 | $734,700 | $332,700 |
| Median rent, all rentals | $2,476 | $2,036 | $1,413 |
| Median rent, 2 bedrooms | $3,124 | $2,103 | $1,407 |
| Median rent, 3 bedrooms | $3,469 | $2,351 | $1,584 |
| Price-to-rent ratio | 33.5 | 26.0 | 17.5 |
| Effective property tax rate | 0.72% | 0.70% | 0.94% |
| Median household income | $140,970 | $99,122 | $80,734 |
| Home value ÷ income | 9.9× | 7.4× | 4.1× |
| Homeownership rate | 38% | 56% | 65% |
| Home value change, 5 yrs | +22% | +40% | +47% |
| Rent change, 5 yrs | +31% | +35% | +33% |
Compare nearby:
Source: U.S. Census Bureau, American Community Survey 5-year estimates (2020–2024; 5-year changes vs 2015–2019). Home values are owners' estimates; rents include utilities and reflect all current renters, so new leases are often higher.
How the mortgage rate changes the answer in San Francisco
The same $1,395,000 home and $3,469 rent, 20% ($279,000) down, staying 20 years, with prices and rents growing 3.5% a year and investments earning 6%. Only the rate changes; adjust any of these in the calculator above.
| Mortgage rate | After 20 years | Break-even |
|---|---|---|
| 7.24% (latest average) | Renting ahead by $1,930,160 | Buying doesn't catch up within 30 years |
| 6% | Renting ahead by $1,499,324 | Buying doesn't catch up within 30 years |
| 5% | Renting ahead by $1,166,457 | Buying doesn't catch up within 30 years |
Over the last five years of Census surveys (2015–2019 to 2020–2024), San Francisco's median home value rose 22% and median rent rose 31%, against 40% and 35% across California.
San Francisco compared with similar cities
The 5 cities whose price-to-rent ratio is closest to San Francisco's (33.5), run with the same assumptions.
| City | Median home value | Rent | Price-to-rent | Property tax | After 20 years |
|---|---|---|---|---|---|
| San Francisco, CA | $1,394,500 | $3,469 | 33.5 | 0.72% | Renting by $1.93M |
| Oakland, CA | $929,900 | $2,369 | 32.7 | 0.91% | Renting by $1.32M |
| New York, NY | $777,600 | $2,123 | 30.5 | 0.69% | Renting by $940k |
| Los Angeles, CA | $921,200 | $2,557 | 30.0 | 0.65% | Renting by $1.08M |
| San Jose, CA | $1,233,200 | $3,479 | 29.5 | 0.73% | Renting by $1.48M |
| Long Beach, CA | $806,600 | $2,467 | 27.2 | 0.69% | Renting by $829k |
| California (state) | $734,700 | $2,351 | 26.0 | 0.70% | Leans toward renting |
Other California cities: Los Angeles · San Diego · San Jose · Fresno · Sacramento · Long Beach · Oakland · Bakersfield · Anaheim · Stockton · Riverside · Santa Ana · Chula Vista.
Renting vs buying in San Francisco: common questions
Is it cheaper to rent or buy in San Francisco, CA?
With typical local prices and rents and a 7.24% mortgage, renting and investing the difference leaves you $1,930,160 better off after 20 years. In year one, owning the median home costs about $10,420 a month against $3,469 in rent, but the answer depends mostly on how long you stay.
How long do you need to stay in San Francisco for buying to pay off?
Buying doesn't catch up within 30 years at today's rate, and the same at 6% or 5%. On the median San Francisco home, buying costs about $41,850 in closing costs and selling about $83,670 at today's price, and price growth and loan paydown have to earn that back before buying comes out ahead.
What is the price-to-rent ratio in San Francisco?
33.5: the median home costs 33.5 years of median 3-bedroom rent, compared with 26.0 across California and 17.5 nationally. By the usual rule of thumb (under 15 favors buying, over 20 favors renting) the San Francisco market leans toward renting.
How high are property taxes in San Francisco?
Homeowners pay an effective 0.72% of their home's value a year, well below the 0.94% national rate. On the $1,394,500 median home that's about $10,054 a year, a cost renters don't pay directly.