Should You Rent or Buy in Lake Oswego?

Deciding between an apartment or house in Lake Oswego, Oregon? Here’s a checklist of the key pros and cons to consider for each housing type:

• Apartments
  • ✅ Lower upfront costs and monthly rent
  • ✅ Included amenities like gym, pool, trash service
  • ✅ Less maintenance and upkeep
  • ❌ Limited space and storage
  • ❌ Potential for noise from neighbors
• Houses
  • ✅ More space and privacy
  • ✅ Ability to customize and renovate
  • ✅ Potential to build equity
  • ❌ Higher upfront costs and monthly mortgage
  • ❌ Responsible for all maintenance and repairs

Let’s take a closer look at the cost differences between renting an apartment vs owning a house in Lake Oswego, and the lifestyle factors to weigh as you make your decision.

Renting vs. Owning in Lake Oswego: What You’ll Pay

In general, renting an apartment in Lake Oswego will have lower upfront and monthly costs compared to buying a house. Renting a 2BR apartment typically costs around $1,800/month, while a 3BR house may cost $2,450/month on average.

The average rent for a 3BR house in Lake Oswego is $2,450/month. However, this can vary based on the neighborhood, age of the home, and included amenities. For example, renting a 3BR in the Mountain Park area may cost closer to $2,800/month.

The cost of renting a house in Lake Oswego has increased by about 4% over the last year. More affordable options can often be found in neighborhoods further from downtown, like Westlake or Palisades.

Table: Cost Comparison – Apartment vs House

Here’s a side-by-side breakdown of common monthly costs in Lake Oswego:

Estimates are for mid-range units with typical usage.

As the table shows, you can expect to pay around $1,255 more per month for a 3BR house compared to a 2BR apartment in Lake Oswego. The biggest cost differences are in the mortgage payment, utilities, and maintenance/HOA fees.

Of course, these are just averages. Your actual costs will depend on factors like the age and size of the unit, energy-efficiency, and your lifestyle. Curious how your monthly budget might break down? Check out our guide on how much it costs to live in Lake Oswego each month.

Utility and Upkeep Differences

In addition to higher rent or mortgage payments, houses in Lake Oswego tend to have higher utility and upkeep costs than apartments:

• Water/Sewer: Houses use 2-3X more water for laundry, dishes, showers, and outdoor watering. Expect $80-120/month.
• Electricity: Cooling a larger space, plus extra appliances and lighting add up. Budget $100-200/month.
• Heating: While some apartments include heat, homeowners pay $80-150/month to heat a 3BR.
• Trash/Recycling: Apartments often include this service, but homeowners pay $20-40/month for curbside pickup.
• Maintenance: From gutter cleaning to HVAC tune-ups, houses require more upkeep. Set aside $150-250/month.

These extra costs add up quickly. Expect to pay $300-500 more per month on utilities and maintenance for a house vs. apartment in Lake Oswego.

Lifestyle Tradeoffs

Of course, it’s not just about the hard costs. There are also lifestyle factors to consider with apartments and houses in Lake Oswego:

• Space: Houses offer more square footage, storage, and room to spread out. Apartments are generally more compact.
• Yard: Most houses in Lake Oswego come with private outdoor space for gardening, pets, and play. Apartments may have small patios or shared green space.
• Amenities: Apartments often include perks like a pool, gym, business center, and covered parking. Houses provide more privacy but fewer community amenities.
• Location: Apartments are often centrally located near shops, dining, and transit. Houses are typically in quieter residential areas, requiring more driving.
• Flexibility: Renting an apartment offers more flexibility to relocate. Owning a house is a longer-term commitment.

Many Lake Oswego residents choose apartments for the walkability and included amenities, while families often prefer houses for the extra space and privacy.

Some may love being in the heart of downtown, close to local hotspots like Lake View Village. Others value the tranquility of neighborhoods like Uplands or Westridge.

Which Is Cheaper Long Term in Lake Oswego?

While renting an apartment is cheaper month-to-month, buying a house in Lake Oswego could be more economical over time. Let’s compare the 5-year cost of renting a 2BR apartment vs. owning a 3BR house:

• Renting a 2BR Apartment for 5 Years: $1,995/month x 60 months = $119,700
• Owning a 3BR House for 5 Years: $3,250/month x 60 months = $195,000

At first glance, renting is $75,300 cheaper over 5 years. However, this doesn’t account for the equity you’d build as a homeowner. Assuming a 3% annual increase in property value, a $400,000 Lake Oswego house would be worth $463,000 after 5 years. So even after paying more in monthly costs, you could come out ahead by owning.

Of course, this depends on your down payment, interest rate, and the real estate market. And there are other ownership costs to factor in, like property taxes and HOA fees in Lake Oswego. But in general, buying a home can be a smart long-term financial move.

FAQs About Housing Costs in Lake Oswego

Still have questions about the cost of living in an apartment vs. house in Lake Oswego? Here are answers to some common ones:

• How much more does a house cost than an apartment in Lake Oswego?
  On average, a 3BR house costs about $1,255 more per month than a 2BR apartment when you factor in rent/mortgage, utilities, and maintenance.
• Do houses always have higher utility bills?
  Yes, houses in Lake Oswego typically have 20-30% higher utility costs for water, electric, gas, and trash service.
• Are apartments still cheaper with pet rent or parking fees?
  Even with extra fees like pet rent ($50/month) or parking ($100/month), apartments are usually cheaper than houses when you add up all the monthly expenses.
• How much should I budget for maintenance and repairs in a Lake Oswego house?
  Plan to set aside at least $200/month for routine upkeep and repairs on a house. Some experts recommend saving 1-3% of your home’s value each year for maintenance.

Making the Right Housing Choice in Lake Oswego

So is it better to rent an apartment or buy a house in Lake Oswego? It depends on your budget, lifestyle, and long-term goals.

Apartments offer a lower-cost, lower-maintenance lifestyle with perks like included amenities and more walkability. Houses provide more space, privacy, and control, with the potential to build equity over time.

Whichever option you choose, be sure to factor in the full picture of monthly costs. The rent or mortgage is just one piece of the puzzle. Consider expenses like utilities, upkeep, taxes, HOA fees, and insurance to get an accurate sense of how much you’ll really pay to live in an apartment or house in Lake Oswego.

Need help determining how much you can afford? Check out our guide on creating a monthly budget in Lake Oswego. Our rent vs. buy calculator can also give you a personalized cost comparison based on your specific housing needs and financial situation.