Even before the artificial intelligence boom began driving up housing costs in the Bay Area, buying real estate in California remained out of reach for many. The Golden State’s home prices are some of the highest in the nation, especially in major coastal metropolitan areas.
But for some residents, homeownership isn’t unattainable, necessarily. It just doesn’t make financial sense.
A new report from rental site Zumper pits the cost of renting versus buying in California and finds that renting is much cheaper than getting a mortgage right now. In San Jose, the city with the starkest difference between the two methods, buying a home costs nearly four times as much as renting. Homeowners there pay an average of $8,593 more per month than renters, with the median home price at $2 million and a median rent of $3,073…