A newlywed couple started their journey in a studio apartment in downtown Long Beach. When they first moved in, the rent was manageable, but as their two-year lease came to an end and they received a renewal notice, the situation changed. They began to naturally wonder if it might be better to buy a home instead of continuing to rent.

One concept worth considering during such deliberations is the price-to-rent ratio. This is the value obtained by dividing the purchase price by the annual rent, which essentially shows how many years of rent would be needed to buy the home they are currently renting. A lower number indicates that buying is relatively advantageous, while a higher number suggests that renting may be the more sensible choice.

Looking at the actual numbers for Long Beach, the median home value according to Zillow is $788,693, which has decreased by 1.3% over the past year (as of June 30, 2026). In contrast, the median rent in Long Beach, as reported by Zumper, is $1,995 per month as of August 2026, with one-bedroom units around $1,800. Rent has shown a decline of 1.64% compared to the previous year.

Calculating the price-to-rent ratio with these two figures yields about 33. Common benchmarks suggest that a ratio below 15 favors buying, while a ratio above 20 indicates that renting may be more advantageous, and Long Beach is significantly above that threshold.

When comparing monthly expenses, the difference becomes even more pronounced. Assuming a 20% down payment and financing the rest with a 30-year fixed mortgage, applying the average interest rate of 6.65% as of August 20, 2026, reported by Freddie Mac, the principal and interest alone would amount to around $4,050 per month. This figure does not include property taxes and insurance, so the actual burden would be even higher.

Ultimately, the choice facing the newlywed couple was between a rent of $1,995 and a mortgage payment exceeding $4,000. Whether they have enough for a down payment and their plans to stay in Long Beach for more than five years are crucial factors in making this decision. If their stay is short or if they might move in the future, considering closing costs and selling fees suggests that renting may be the more stable option.

However, it is difficult to make a judgment based solely on the price-to-rent ratio. There is also the opportunity cost of investing the lump sum that would go toward a down payment elsewhere, and conversely, the fact that the principal portion of the mortgage payment builds equity over time should also be considered. The balance of these two factors is key to this calculation.

If they lean toward buying, it's wise to calculate closing costs in advance. Typically, closing costs range from 2% to 5% of the purchase price, which for the median price in Long Beach would require about $16,000 to $39,000. Adding moving costs to this can make the initial financial burden comparable to that of the down payment.

On the other hand, if they plan to settle down for a long time due to school districts for their children, the situation may change. For families that prioritize school districts, checking the ratings of assigned schools on sites like GreatSchools or Niche can be helpful. However, since school district boundaries change frequently, it's advisable to verify the assigned school for the specific address before making a purchase.

In areas like Long Beach, where the price-to-rent ratio is high, renting may seem more advantageous when looking solely at immediate monthly costs. However, this does not mean that buying is always unfavorable. The long-term aspect of building equity by paying down the principal must also be considered. It seems prudent to first clarify their ability to make a down payment and their intended length of stay.

Market prices and interest rates can vary based on county and loan conditions, so the figures in this article should be used for reference only. This is not investment or legal advice, and it is recommended to consult with real estate and lending professionals before making any actual agreements.