Zillow’s Rent vs. Buy Report: Here’s the Full Picture for SoCal in 2025

🏡 Zillow’s Rent vs. Buy Report: Here’s the Full Picture for SoCal in 2025

by [Your Name] • August 11, 2025 • 08:15 AM

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💡 Zillow Says Renting Saves More? Let’s Put That to the Test
Zillow’s latest study claims Southern California renters could save $105,000 over 5 years compared to buying.
But is it really that simple?
If you’re a current renter, a potential homebuyer, or an investor watching the market, here’s why this headline doesn’t tell the whole story — and what you need to know before making a decision.

📊 Zillow’s Core Claim

• Renting a single-family home in L.A.-O.C. costs ~$4,462/month.

• Buying the median-priced $966,700 home would cost ~$6,315/month with 10% down.

• Result: Renters “save” about $1,853/month, or ~$105,000 over 5 years.

🚨 The Problem with Zillow’s Math

1️⃣ Unrealistic Rent Growth Assumption
Zillow uses a 3% annual rent increase — but history says otherwise:

• Inland Empire: +43% since 2019 (4th-highest in U.S.)

• San Diego: +37%

• L.A.-O.C.: +26%

• National: +32%

2️⃣ No Equity Considered
Every mortgage payment builds ownership. Rent builds nothing.

3️⃣ Ignores Tax Benefits
Mortgage interest and property taxes can lower taxable income.

4️⃣ Skips Appreciation
At just 3% annual growth, a SoCal home could add $154,000 in value over 5 years.

5️⃣ Misrepresents the Down Payment
That $96,700 “cost” for 10% down? It’s not gone — it’s invested in your home.

📈 The Real Long-Term Picture

🔥 Why Homeownership Still Wins
For the vast majority of Americans, homeownership is the #1 path to building wealth over a lifetime (Forbes).
With SoCal rents rising faster than Zillow’s model suggests, the real risk isn’t buying — it’s waiting.

🏠 Your Next Step
At HOTT Homes Sells, we help clients navigate the numbers, see the real costs, and make decisions that build lasting wealth.
✅ Understand your buying power today
✅ Explore homes that fit your budget and goals
✅ See rent vs. buy numbers based on your situation

📲 Call us now or visit HOTTHomesSells.com to get your personalized rent vs. buy analysis — and find out why waiting could cost you.

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