It’s one of the oldest real estate debates — rent or buy? But in 2025, the math has changed in a way that even skeptics didn’t see coming.

The Numbers

The median two-bedroom rent in Los Angeles just hit $3,850/month — a 9% increase year-over-year. Meanwhile, a $1M home with 10% down equals about $6,500/month with taxes and insurance included. On paper, renting looks cheaper. But over five years, buying wins by a landslide.

Let’s Break It Down

• Renting: $3,850 × 12 months × 5 years = $231,000 spent.
  
  

• Owning: $6,500 × 12 months × 5 years = $390,000 paid — but nearly $110,000 of that is equity.
  Add $150K in appreciation (modest for Pasadena’s market) and the homeowner gains over $250K net. Renters gain nothing but renewal anxiety.
  
  

The Inflation Factor

Rent rises every year. Mortgages don’t. Locking in a fixed payment means long-term stability while wages rise and inflation compounds your equity advantage.

Emotional ROI

Homeownership is also emotional equity — community, creativity, and pride of place. Renters decorate temporarily. Owners invest intentionally.

“Renting is short-term comfort,” Jason says. “Owning is long-term confidence.”

Where Buying Beats Renting Most

Pasadena, Altadena, and Glendale all outperform rent inflation. In these zones, monthly cost parity happens within 3–4 years.

The Real Lesson

If your rent is above $3,000, you’re already paying a mortgage — just not yours. 2025 is the year to make that payment work for your future, not your landlord’s.

FAQ

Q: Is renting cheaper in LA right now?
A: Slightly — but ownership builds equity and stability faster than rent rises.

Q: How soon does buying beat renting financially?
A: In Pasadena, usually within 3–4 years.

Run your custom rent-vs-buy analysis with Jason Bergman – The Agency Pasadena.