Should You Rent or Buy in Mission Viejo?

Renting vs. Owning in Mission Viejo: What You’ll Pay

When deciding between renting an apartment or buying a house in Mission Viejo, it’s important to understand the cost differences. Renting a 2BR apartment in Mission Viejo typically costs $2,800/month, while a 3BR house may cost $3,500/month. The average rent for a 3BR house in Mission Viejo is $3,450/month. The cost of renting a 3BR house in Mission Viejo has increased by 6% over the last year, with more affordable options in the Aegean Hills neighborhood.

For those looking to buy, the median home price in Mission Viejo is $875,000. Over 60% of new homebuyers in Mission Viejo choose single-family detached homes. However, townhomes and condos remain popular for their affordability and lower maintenance needs.

Beyond the monthly rent or mortgage, there are several other costs to factor in. Utilities, insurance, maintenance, and HOA fees can add up. Let’s take a closer look at how these expenses compare for apartments and houses in Mission Viejo.

Table: Cost Comparison – Apartment vs House

Here’s a side-by-side breakdown of common monthly costs in Mission Viejo:

Estimates are for mid-range units with typical usage.

Utility and Upkeep Differences

In general, houses in Mission Viejo have higher utility costs than apartments. Some key differences:

• Water: Houses use 30-40% more water for lawns, pools, and larger households.
• Electricity: Cooling a house in the summer heat can cost $50-100 more per month.
• Lawn care: Expect to pay $100+ monthly for landscaping services.
• HVAC maintenance: Annual tune-ups are crucial in Mission Viejo’s climate and cost $200-300.

Apartments have the advantage of split utilities and on-site maintenance teams to handle repairs. However, newer apartment complexes in Mission Viejo often include trash and internet, adding $50-100 to the base rent.

Houses come with more upkeep but also more control over utility usage. Installing energy-efficient appliances, extra insulation, or solar panels can help reduce bills. In Mission Viejo, many homes use swamp coolers which can reduce A/C costs by 30% compared to central air.

Lifestyle Tradeoffs

Beyond the financial factors, there are key lifestyle differences to consider with apartments and houses in Mission Viejo:

• Space: Houses provide more room to spread out, important for families or those who work from home. Apartments offer less space but also less to clean and maintain.
• Noise: Apartments mean closer neighbors and potential noise issues. Houses provide more privacy and separation.
• Yard access: Many Mission Viejo houses have private yards, great for kids, pets, and gardening. Apartments may offer shared green spaces or small patios.
• Pets: Houses rarely restrict pets, while many apartments charge monthly pet rent around $50 plus a $500 deposit.
• Location: Apartments are often centrally located near shopping, dining and transit. Houses may require a longer commute.
• Parking: Houses usually include a garage and driveway. Apartments may charge $50-150 monthly for a parking space.

Many Mission Viejo residents choose apartments for walkability, while families prefer houses for yard space and privacy. Some may prefer the convenience of an apartment near downtown, while others enjoy the extra space a house provides in neighborhoods like Aegean Hills or Cordova.

Which Is Cheaper Long Term in Mission Viejo?

While renting is cheaper month-to-month, buying can be more cost-effective long term. Let’s compare the 5-year cost of renting a 2BR apartment vs. owning a 3BR house, assuming 3% annual rent increases and 1% annual home appreciation:

• Renting: $3,325 x 12 months x 5 years = $207,360 total
• Owning: $4,180 x 12 months x 5 years = $260,640 total, but $43,750 is earned back in equity.

In this scenario, owning is only $9,530 more over 5 years, and the difference shrinks with longer timelines. Of course, this doesn’t account for the upfront down payment and closing costs required to buy.

In cities like Mission Viejo, buying a home could be more economical over time, especially considering rising rents. Use this rent vs. buy calculator to weigh your options.

FAQs About Housing Costs in Mission Viejo

How much more does a house cost per month?
In Mission Viejo, a 3BR house costs about $850 more per month than a 2BR apartment when you factor in utilities, insurance, and upkeep. However, this doesn’t include the upfront costs of buying.

Do houses come with higher utility bills?

Yes, houses in Mission Viejo typically have 20-30% higher utility costs for water, electricity, gas, and trash. This is due to larger square footage, lawn watering, and less efficient cooling. But houses also allow more control over energy-saving upgrades.

Are apartments cheaper even with pet fees?
If you have a pet, choosing an apartment will still be cheaper than a house in the short term. While many Mission Viejo apartments charge $50 pet rent, this is offset by the lower rent, utilities, and upkeep costs compared to a house. But a house offers more pet-friendly space if you can afford the upfront costs.

Making the Right Housing Choice in Mission Viejo

Ultimately, the decision to rent an apartment or buy a house in Mission Viejo depends on your budget, lifestyle, and long-term goals. Apartments offer flexibility and short-term savings, while houses provide space and long-term investment.

Whichever path you choose, make sure to budget for the full cost of living, not just rent or mortgage. Factor in utilities, insurance, maintenance, and location-specific costs like property taxes and HOA fees. And don’t forget to plan for upfront expenses like security deposits and closing costs.

For more info on budgeting for housing in Mission Viejo, check out our guide to average monthly expenses. And if you’re still unsure, try renting first to explore different neighborhoods before making the leap to homeownership. With careful planning, you can find the perfect apartment or house to call home in Mission Viejo.