Many of you may be wondering if now is the time to buy a home as rent prices in Fullerton continue to rise slightly each year.

So today, I want to break down this dilemma with actual numbers.

The median home price in Fullerton is currently around $1,047,000. It has shown a slight upward trend for the past five months, steadily recovering since last October's low of $1,029,990. Rent for a two-bedroom unit is around $2,595 per month.

If we calculate the Price-to-Rent Ratio, dividing $1,047,000 by the annual rent of $31,140 gives us a ratio of 33.6. Since a ratio above 21 indicates a favorable rental market, Fullerton shows a significantly high number, suggesting that renting might feel more comfortable right now.

Let's look at the actual payment amounts. If you put down a 20% down payment of $209,400 and calculate based on a 30-year fixed rate of 6.75%, the principal and interest would be $5,433 per month, and the total PITI (Principal, Interest, Taxes, and Insurance) would be $6,512 per month. Compared to the rent of $2,595, this results in a staggering difference of $3,917 per month. This means you would need to bear nearly $4,000 more each month, making it a significant decision.

Of course, we also need to consider the opportunity cost of investing that $209,400 down payment.

Assuming a 7% annual return, you would be giving up about $14,658 in potential earnings each year, but remember that part of the principal and interest you pay each month ultimately builds your asset.

When comparing nearby cities like Fullerton, Buena Park, and Anaheim, they all show similar Price-to-Rent Ratios around 30. It seems that the northern part of Orange County is currently in a rental-dominant phase.

However, if your children are already attending schools in Fullerton and you are certain about settling down long-term, it might be worth considering buying, even if it feels burdensome. Conversely, if you are still flexible about your settlement location, it may be better to rent for now and comfortably save your funds.

For Korean households, Fullerton remains a popular area in terms of school districts and community, but the current numbers lean towards renting, which is something to keep in mind.