The urge to move west and secure a beautiful piece of land is a uniquely American one. Nothing embodies the dream of homeownership like the state of California. However, the decision to rent or buy a home in the Golden State is complex and influenced by high real estate prices, fluctuating rental costs and a competitive real estate market.

California’s real estate market is one of the most dynamic and expensive in the United States. Home prices in cities like San Francisco, Los Angeles, and San Diego are among the highest in the country, due to demand, limited housing supply, and ever-increasing interest rates. While these cities offer unmatched cultural and economic opportunities, they also present significant financial challenges when it comes to purchasing a home or even renting one.

Rental prices in California are high and typically require a security deposit, first and last month’s rent, and possibly an origination fee. These upfront costs are significantly lower than those associated with purchasing a home. Monthly payments, while high in many parts of the state, include the cost of living in the property without the added burden of property taxes, maintenance, and repairs.

Buying a home in California requires a significant financial commitment. The initial costs of purchasing include a down payment, closing costs, home insurance, repairs, maintenance, and potentially significant moving costs. Monthly mortgage payments in California are often higher than rent, but help build equity and potentially benefit from property appreciation and tax advantages.

GOBankingRates recently conducted a study to determine the difference between renting and buying a home based on factors such as general cost of living, median household income, average home value, mortgage payments, or rental costs.

Here are the key takeaways from these 17 major cities in California.