The Housing Market in El Cajon Today
Is it cheaper to rent or buy right now in El Cajon, CA? The local housing market has seen some shifts in recent years. Inventory of available homes for sale has tightened up, leading to rising prices and more competition among buyers. At the same time, several new apartment developments have sprung up in downtown El Cajon, expanding rental options. Many of these newer apartment complexes feature desirable amenities like fitness centers, pools, and green spaces.
The decision of whether to rent an apartment or buy a house in El Cajon depends on your budget, lifestyle preferences, and long-term plans. Renting offers more flexibility and lower upfront costs, while buying builds equity and can provide more stability. Let’s take a closer look at the typical costs of renting vs owning in El Cajon to help you make an informed choice.
Renting in El Cajon: What’s Typical?
As of 2023, the average rent for apartments in El Cajon is:
- 1 bedroom apartment: $1,800 per month
- 2 bedroom apartment: $2,200 per month
Rent prices in El Cajon have risen by about 5% over the past year, outpacing the national average. However, certain neighborhoods like Fletcher Hills and Granite Hills still offer relatively affordable options that are popular with young professionals and small families. Most apartment complexes in El Cajon include water, trash, and sometimes even internet in the monthly rent.
When budgeting for an apartment, be sure to factor in utilities like electricity which can add $100+ per month. Renters insurance is also recommended and typically costs around $15 per month. For a detailed breakdown, see our guide on Sample Monthly Budgets for El Cajon in 2025.
Owning a Home in El Cajon
As of 2023, the median home price in El Cajon is $650,000. Assuming a 10% down payment and a 30-year fixed mortgage at 6.5% APR, the estimated monthly mortgage payment would be around $3,700. However, the total monthly cost of ownership is higher once you factor in:
- Property tax: 1.25% of the assessed value annually (about $680/month)
- Homeowners insurance: $80/month on average
- HOA dues: $350/month on average for homes in a community with shared amenities
- Maintenance and repairs: Budget 1-2% of your home’s value annually
For a median-priced home in El Cajon, the all-in monthly cost of ownership is around $4,800 – significantly higher than renting. However, a portion of your mortgage payment builds equity and homes appreciate in value over time.
Renters vs Homeowners: Who Lives Where?
El Cajon has a homeownership rate of 44%, well below the national average of 64%. The majority of residents are renters. Renting is especially common among younger individuals, with 65% of those under 35 living in rental properties.
Families and older residents are more likely to own homes in El Cajon. About 60% of those 45 and older are homeowners. The most popular neighborhoods for buyers include Fletcher Hills, Granite Hills, and Bostonia, which offer larger properties and highly-rated schools.
While renting is accessible to a wider range of incomes, the financial barriers to homeownership remain significant. The median household income in El Cajon is $58,000, but experts recommend an income of at least $100,000 to comfortably afford the median-priced home.
Table: Typical Monthly Housing Costs in El Cajon
| Cost | Apartment (2BR) | House (Median Price) |
|---|---|---|
| Rent/Mortgage | $2,200 | $3,700 |
| Property Tax | $0 | $680 |
| Insurance | $15 | $80 |
| HOA Dues | $0 | $350 |
| Utilities | $150 | $250 |
| Total | $2,365 | $5,060 |
Estimates reflect mid-range properties and average usage.
What’s Driving Housing Costs in El Cajon?
Several factors influence the cost of housing in El Cajon:
- Supply and demand: El Cajon’s population has grown 6% over the past decade, outpacing new housing construction. This imbalance drives up both rent and home prices.
- Job market: El Cajon benefits from its proximity to San Diego’s strong job market. As incomes rise, so does demand for housing and willingness to pay higher costs.
- Zoning and density: Much of El Cajon is zoned for single-family homes, limiting the potential for denser multifamily housing that could improve affordability. Recent efforts aim to allow more accessory dwelling units (ADUs).
- Investor activity: Historically low mortgage rates in recent years prompted more investor purchases of homes to convert into rentals. This increased competition for limited inventory.
FAQs About Housing in El Cajon
Is El Cajon an affordable place to live?
While El Cajon is more affordable than coastal cities like San Diego, it is still relatively expensive compared to national averages, especially for housing. Rents and home prices have risen faster than incomes.
Why are housing costs rising in El Cajon?
Population growth, high demand, limited inventory, and proximity to job centers are the main factors pushing costs up. Zoning restrictions on density also play a role.
How does the cost of living in El Cajon compare to nearby cities?
Housing costs in El Cajon are about 20% lower than in San Diego proper. However, El Cajon is still more expensive than inland cities like Santee and Lakeside. For a full breakdown, see our Cost of Living in El Cajon: Your Monthly Budget Guide for 2025.
Making Smart Housing Decisions in El Cajon
When deciding whether to rent or buy in El Cajon, consider both the hard costs and your lifestyle needs. Renting is cheaper on a monthly basis and offers more flexibility if your job or family situation may change in the near future. Buying provides more stability and the opportunity to build wealth through equity, but it requires being prepared for the added costs and responsibilities of ownership.
Whichever option you choose, be sure to budget carefully and plan for the long term. Factor in not just rent or mortgage payments, but the full range of expenses you’ll be responsible for. And give yourself wiggle room for future increases in costs. While housing in El Cajon is expensive, it’s possible to make it work with smart planning and informed decisions.