With the news that a two-bedroom apartment rental in Anaheim exceeds $2,500 a month, many are wondering if it might be better to buy a home instead.

The median home price in Anaheim is currently around $900,000 based on the last three months (the Zillow average is about $843,000, while the Redfin median is $948,000, so we used the median of $900,000). Rent for a two-bedroom is approximately $2,503 per month. Calculating the Price-to-Rent Ratio with these two figures gives us a value of 30.0, which is $900,000 divided by the annual rent of $30,036.

A ratio below 15 suggests buying is favorable, while above 21 indicates renting is better. With Anaheim at 30.0, it clearly leans towards renting. This ratio suggests there's no immediate rush to buy.

Let's also look at the actual monthly burden. If you put down $180,000 as a 20% down payment and calculate with a 6.75% fixed mortgage over 30 years, the principal and interest alone would be $4,670 per month. Adding property taxes and insurance brings it to about $5,615 per month. Compared to the rent of $2,503, that's a whopping $3,112 difference. Over a year, that's more than $37,000, which is not a trivial amount.

Of course, we also need to consider the opportunity cost of the $180,000 down payment if it were invested. Assuming a 7% return, you'd be giving up about $12,600 in potential earnings annually. Even taking this into account, renting in Anaheim appears to be a much lighter choice.

Compared to nearby cities like Fullerton or Buena Park, Anaheim tends to have higher home prices due to its school district and accessibility premiums. On the other hand, the rental market is relatively stable, making it an attractive area for short-term residents.

Still, you might have a dream of owning your own home. If you plan to settle in the area for more than five years and need to stay for your children's school district, it may be worth considering buying, even if it feels like a burden. Conversely, if your future location is still uncertain, renting for now while building your savings might be the more comfortable option.

For Korean households, Anaheim remains an attractive place in terms of community and school districts, but the current numbers suggest that renting is the way to go, which is something to keep in mind.