Renting vs. Buying in Los Angeles: Does It Actually Make Sense?
Let’s tackle one of the biggest questions LA first-time buyers ask:
“Is buying in Los Angeles really worth it… or is renting smarter?” And the honest, non-salesy answer is: both can be smart, it depends on your timeline, finances, and goals.
So let’s break it down clearly, with real numbers, real scenarios, and zero fluff.
The Case for Renting in LA
Renting can be the right move if you:
Want flexibility — not ready to commit to a neighborhood
Expect a major life change (job, relationship, moving states, etc.) soon
Need time to build savings and credit
Aren’t emotionally ready for maintenance & responsibility
Are exploring different areas (very normal in LA!)
Renting = paying for flexibility, simplicity, and time. That’s not a bad thing, it just shouldn’t be your forever plan if long-term wealth matters to you.
The Case for Buying in LA
Buying can make more sense if you:
Plan to stay at least 5–7 years
Want predictable monthly payments (vs rent hikes)
Care about stability and long-term roots
Want to build equity and wealth over time
Want a lifestyle upgrade in which your space is truly yours, and you can do with it as you please
Have the ability to save and plan
Buying = paying to build your own financial foundation, not your landlord’s.
Let’s talk numbers (because vibes aren’t enough)
Say you're currently renting in LA:
$3,500/month for a one-bedroom in a popular area,
OR$4,500/month for a two-bedroom in many neighborhoods
That means over 5 years you're spending:
$3,500/mo → $210,000
$4,500/mo → $270,000
And you build… $0 in equity.
Now compare that to buying a $950,000 condo or starter home. With a typical payment (taxes, insurance, HOA if applicable), most buyers in 2025 might be around $6,500–$7,900/month depending on down payment and interest rates.
Higher monthly cost? Yes.
But over those same 5 years:
You’re paying down your loan
You gain equity through amortization
You benefit from potential appreciation
You hedge against rising rents
Your payment stabilizes long-term
You're gaining tax benefits (talk to a CPA for details!)
And historically, LA real estate has appreciated consistently over decades. This city rewards patience.
“But if I invest the same money, it can grow more in the stock market than it will in the house…”
Sure! And in some cases, investing in the market can outperform real estate returns. But here’s the full picture:
You have to actually invest that money every month. not just intend to (and most people don’t sustain that discipline over 5–10 years).
You're delaying a major lifestyle upgrade. Your own yard, office space, a dog-friendly home, freedom to personalize, and long-term stability.
Waiting typically means buying at higher prices and rates. LA historically gets more expensive over time.
Rent payments don’t stop or stabilize. Landlords raise rents, but a fixed mortgage lets you stay in control.
Real estate builds wealth through multiple channels. Appreciation, principal paydown, tax benefits, and leverage.
You can live inside your investment. You can't sleep in your index fund.
A $80k down payment controls a ~$950k asset in real estate. In stocks, $80k controls… $80k. Real estate is leveraged growth.
Refinancing unlocks future upside. If rates drop, you reduce your payment; if stocks drop, you just ride it out.
Housing is a hedge against inflation. When costs rise, so do rents and home values, but your mortgage stays fixed.
You don’t need to choose one or the other. Many owners invest and buy property; owning doesn't stop you from building a portfolio.
Buying doesn’t make sense for everyone, and a lot of people are happy with their living space as a renter. In that case, renting is a fabulous solution!
However, most people I know want to have control over their living space, and want more space than renting typically allows (at a reasonable price point). In this case, I encourage you to carefully consider the points above. If you intend to buy eventually, making a plan…makes sense.
“What if I don’t feel ready yet?”
Good. Awareness means you’re in the exploration phase. Here’s what I recommend for smart long-term planning:
Track your monthly spending + savings habits
Start exploring neighborhoods in person
Map out a 6–12 month buying strategy (I can help you with this)
Ask questions, lots of them!
Your readiness grows as your clarity grows.
Final Thought
Renting isn't a failure, it's a season. Buying isn't a leap, it's a plan. The key question isn’t: “Should I buy right now?” It's: “Where am I in my journey, and what’s my next step?” My job isn’t to rush you, it’s to help you understand the path so you can move when you decide it's time.