Apartment vs. House in San Diego: Which Costs More?

Deciding whether to rent an apartment or buy a house in San Diego? Here’s a quick look at the pros and cons of each:

• Apartments
  • ✅ Lower upfront costs
  • ✅ Included amenities
  • ✅ Less maintenance
  • ❌ Limited space & customization
  • ❌ Potential noise from neighbors
• Houses
  • ✅ More privacy & space
  • ✅ Ability to customize
  • ✅ Potential to build equity
  • ❌ Higher upfront costs
  • ❌ More maintenance & upkeep

Of course, the right choice depends on your specific budget, needs, and goals. Let’s take a closer look at the cost of living in an apartment vs house in San Diego to help you decide.

Renting vs. Owning in San Diego: What You’ll Pay

In general, renting an apartment in San Diego tends to have lower upfront and monthly costs compared to buying a house. Renting a 2BR apartment typically costs around $2,500/month, while a 3BR house may cost $3,500/month or more.

Keep in mind, these are just averages. Actual costs can vary widely based on the neighborhood, age of the property, included amenities, and more. For example, you might find a 2BR apartment for $2,000 in a suburban area like La Mesa, while a similar unit could cost over $3,000 in a trendy neighborhood like Little Italy.

When it comes to buying a house, your monthly mortgage payment will depend on the home price, your down payment, interest rate, and other factors. The median home price in San Diego is around $750,000. Assuming a 20% down payment and 3% interest rate, that would translate to a monthly payment of about $2,500 (not including taxes, insurance, or HOA fees). However, houses in desirable areas can easily cost over $1 million.

Table: Cost Comparison – Apartment vs House

Here’s a side-by-side breakdown of common monthly costs in San Diego:

Estimates are for mid-range units with typical usage, expressed as gross monthly costs.

As you can see, the total monthly cost for a house is significantly higher, largely due to the bigger mortgage payment. However, a portion of your mortgage goes toward building equity in the home, which you don’t get with renting. Property taxes and homeowners association (HOA) fees can also add hundreds to your monthly house payment.

Utility and Upkeep Differences

In addition to the base rent or mortgage, you’ll need to factor in monthly utilities. These costs are highly variable, but in general, you can expect to pay more in a house because you’re heating, cooling, and powering more space.

Some key differences in utility and maintenance costs for apartments vs houses in San Diego:

• Water/Sewer: Often included in rent for apartments, but homeowners pay separately. Larger households and yards increase water usage.
• Electricity: Apartments typically use less due to smaller space and shared walls. Houses require more power for A/C and appliances.
• Gas: Used for heating, cooking, laundry. Costs are higher in houses with gas appliances and fireplaces.
• Trash: Usually included for apartments, but homeowners pay for private collection.
• Maintenance: Apartments handle most repairs and upkeep, while homeowners are responsible for all maintenance inside and out, including yard work, pest control, appliance repair, etc.

Of course, utility costs will depend on your usage, the size and age of the unit, and the type of heating/cooling system. Newer apartments are often more energy-efficient. And while homeowners have more control over utility costs, they also bear the full responsibility for maintenance and repairs.

Lifestyle Tradeoffs

Aside from the hard costs, there are a number of lifestyle factors to consider when choosing between an apartment and a house in San Diego:

• Space: Houses offer more square footage and storage, plus yard space. Apartments are generally smaller but require less cleaning and upkeep.
• Privacy: Houses provide more privacy from neighbors, with no shared walls. Apartments may have noise from surrounding units.
• Location: Apartments are often located in more walkable, urban areas. Houses are more common in residential neighborhoods, which may mean a longer commute.
• Amenities: Many apartment complexes include amenities like a pool, gym, or business center. Houses offer more freedom to add your own features.
• Parking: Apartments usually have shared lots or garages, which may come with an extra fee. Houses generally include private driveway parking.
• Pets: Many apartments charge monthly pet rent or restrict the size/breed of dogs. Houses give you more flexibility with pets.

Ultimately, the right fit depends on your stage of life and personal preferences. Young professionals may prefer a walkable apartment near downtown, while growing families often need the extra space of a house in the suburbs.

Which Is Cheaper Long Term in San Diego?

While renting is almost always cheaper than buying on a monthly basis, owning a home can be more cost-effective in the long run. Let’s say you purchase a $750,000 home with 20% down and a 3% interest rate. Your total monthly payment would be around $3,500. If you rented an equivalent house for $3,500/month, after 5 years you would have paid $210,000 in rent with no equity to show for it.

Meanwhile, after 5 years of ownership, you would have paid down about $50,000 in principal on your mortgage. Even accounting for maintenance, property taxes, and other homeownership costs, you’re likely to come out ahead financially by owning — assuming your home value appreciates over time.

That said, not everyone has the upfront cash for a down payment or the desire to stay in one place for several years. Renting provides more flexibility to move for a job or downsize if needed. And in a high-priced market like San Diego, it can take many years to break even on a home purchase.

FAQs About Housing Costs in San Diego

How much more does a house cost per month compared to an apartment?
On average, expect to pay about $1,500 more per month for a 3BR house compared to a 2BR apartment in San Diego, including rent/mortgage, utilities, and maintenance.

Do houses always have higher utility bills than apartments?
In general, yes. Houses are larger and have more exposure to the elements, so they require more energy to heat and cool. However, the difference depends on the size, age, and efficiency of each property.

Are apartments still cheaper than houses even with pet rent?
Most of the time, yes. While pet rent can add $50-$100/month, this is still far less than the extra mortgage, tax, and maintenance costs of a house. Keep in mind, some apartments have breed or size restrictions on pets.

Making the Right Housing Choice in San Diego

As you can see, the cost difference between renting an apartment and owning a house in San Diego is significant — about $1,500/month on average, not including the upfront down payment and closing costs on a house. For many people, renting is the more affordable and flexible option, especially in the short term.

However, with rents rising steadily in San Diego, owning can be a smart long-term investment and provide a sense of stability. You’ll just need to make sure you have the savings and credit to qualify for a mortgage, and that you’re prepared for the added responsibility of maintenance.

Whichever option you choose, be sure to budget for all the monthly expenses of renting or owning in San Diego, not just the base rent or mortgage. And consider your lifestyle needs — location, space, amenities — as much as the financial factors. With some careful planning, you can find the perfect apartment or house to call home in America’s Finest City.