Suburbs Where Buying is Now Cheaper Than Renting

In a surprising shift, buying a home in certain San Francisco suburbs is now more affordable than renting. This key fact has significant implications for the local real estate market, as buyers and renters reassess their options.

The reason this matters now is that the tech sector's demand for housing is returning, driving up rents in popular neighborhoods like the Mission and Dogpatch. Meanwhile, the condo market remains active, with many buyers seeking more space and stability outside of the city center. As a result, suburbs like Daly City and South San Francisco are gaining attention from buyers who want to own a home without breaking the bank.

Local organizations like the San Francisco Association of Realtors and the Homeownership SF program are taking notice of this trend. In neighborhoods like the Outer Richmond and Sunset, buyers can find relatively affordable options, with median home prices ranging from $800,000 to $1.2 million. For example, a 2-bedroom condo on Irving Street in the Outer Richmond might cost around $900,000, while a similar unit on 24th Street in the Mission could rent for $4,500 per month.

Breaking Down the Numbers

A closer look at the data reveals that buying is indeed cheaper than renting in many suburbs. According to a recent report by the real estate firm Zillow, the median home value in Daly City is around $930,000, with a monthly mortgage payment of approximately $4,300. In contrast, the median rent for a 2-bedroom apartment in Daly City is around $4,800 per month. Similarly, in South San Francisco, the median home value is around $1.1 million, with a monthly mortgage payment of around $5,500, compared to a median rent of $5,200 per month for a 2-bedroom apartment.

As of June 2026, the interest rates for a 30-year fixed mortgage are around 6.5%, making it an attractive time for buyers to enter the market. With the help of programs like the Mortgage Credit Certificate offered by the California Housing Finance Agency, buyers can reduce their tax liability and make homeownership more affordable. As the market continues to evolve, it's essential for buyers and renters to stay informed and explore their options carefully, considering factors like commute time, schools, and local amenities when deciding where to live.