Justin Ghio and his fiancé wanted to make the plunge into homeownership when interest rates plummeted at the height of the pandemic in 2020. They made offers on four houses in San Diego, but they were outbid on all of them.
Soon enough, home prices and mortgage rates were soaring amid a buying frenzy, and they felt they’d missed their opportunity to buy.
“I’d always hoped to own a home,” Ghio said. “With the rising interest rates, it just fiscally wasn’t seemingly responsible to make that decision to try to buy.”
But now, Ghio, a 35-year-old talent director, says he’s relieved they didn’t stretch their budget to buy. Renting is significantly cheaper than owning a home in San Diego, like in many hot housing markets, and Ghio is among a growing number of Americans choosing to keep renting rather than take on a hefty mortgage.
Three years ago, the couple and their eight-year-old twin daughters moved into their current rental home in a quiet San Diego neighborhood near their kids’ school. They pay $3,795 a month in rent for their four-bedroom, two-bath house with a pool. Ghio appreciates not having to worry about paying for home maintenance and repairs — their landlord provides regular gardening and pool service.
And the rent is affordable. Between Ghio’s salary and his fiancé’s work as an esthetician, the couple brings in about $225,000 a year. They’re enjoying the extra money they’re saving by renting.
“Renting feels like we make over $200,000. I think buying would feel like we’re broke,” Ghio said. “And you don’t work 12, 15 years after school to feel broke again — at least, it’s a hard pill to swallow.”
The decision not to buy felt especially strategic when Ghio was laid off from his previous job in talent acquisition last year. He applied for new jobs in multiple states, knowing that, because they rent, they had more flexibility to move. He’s since found a new role at a translation services company in the city, but he’s had to take a hefty pay cut.
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Zillow estimates that their rental house would sell for about $1 million. A mortgage on a comparable house in their neighborhood would likely far exceed their rent, not to mention the costs of home maintenance, insurance, and purchasing fees. If they were to buy their rental house with a 20% down payment and about a 7% interest rate, it would cost the couple about $5,300 a month, before taxes and insurance, according to Zillow’s mortgage calculator.
This isn’t unusual. A study from the National Association of Realtors found that in 2024, homebuyers purchasing starter homes in 50 major cities spent over $1,000 more on housing costs each month than renters did.
The couple has avoided becoming “house-poor,” and instead, they budget more for vacations and their kids’ extracurriculars. Ghio doesn’t want to sacrifice the family’s quality of life and “the ability to enrich our girls’ childhood in a way that is unique and fun through experiences” just to own a home.
The couple is also saving for their wedding and considering having a third child.
“We’re trying to be really pragmatic and just be like, we cannot afford a child if we buy a house,” Ghio said. “The expenses would probably push us to the brink.”
Renting a home seems like the smartest choice for now. But if circumstances change down the road, Ghio said he’s open to buying.
“We’re looking at things in two-year, three-year, four-year chunks,” he said. “I’m not going to draw a line in the sand and say, ‘No, never.'”
