Should you rent or buy in New York?
Buying a home in with down at on a loan, versus renting at with rent rising , over .
Tap any underlined value to change it. Everything else is under All assumptions.
Tips if you are not sure how long you will stay, or own your home outright
- Not sure how long you will stay: try a shorter number of years first; short stays usually favour renting.
- Own your home outright: set the down payment equal to the price to compare keeping it with selling and renting.
Starting from typical New York numbers.
Buying leaves you with $465,953 in home equity. Renting and investing the difference leaves $521,495.
Home equity is what you would keep after selling. Invested savings is the down payment plus the monthly difference, invested at the assumed 7% return. Nominal dollars, not adjusted for inflation (All assumptions can show today's dollars). Both sides are before any tax on gains; in practice home-sale gains are often tax-free up to a limit while investment gains usually are not.
The answer only changes if New York home prices rise more than 4.25% a year. You assumed 3.5%. It also changes if your investments return less than 5.75% a year instead of 7%.
How we calculate thisFree, no ads, no account.
Pin locks in exactly what you see now, so finish your edits first. Then change any value, and the two are shown side by side.
- Buy: home equity after selling costs
- Rent: invested savings
- Buy if prices rise 4.25%/yr
Buying costs more per month by: $1,411 in Year 1, $893 in Year 10.
Buying a home in with down at on a loan, versus renting at with rent rising , over .
Tips if you are not sure how long you will stay, or own your home outright
- Not sure how long you will stay: try a shorter number of years first; short stays usually favour renting.
- Own your home outright: set the down payment equal to the price to compare keeping it with selling and renting.
Projected net worth at the end of each year: home equity if you sold, versus invested money if you rented. Nominal dollars.
| Year | Buy | Rent | Rent ahead by |
|---|---|---|---|
| 1 | $123,504 | $185,931 | +$62,427 |
| 2 | $155,415 | $216,225 | +$60,810 |
| 3 | $188,694 | $247,975 | +$59,281 |
| 4 | $223,408 | $281,274 | +$57,866 |
| 5 | $259,625 | $316,269 | +$56,644 |
| 10 | $465,953 | $521,495 | +$55,542 |
Starting estimates for New York, NY
At about $735,000 to buy versus $3,625/mo to rent, New York's price-to-rent ratio is roughly 16.9x annual rent, squarely in the range where the rent-vs-buy decision is genuinely close and your own time horizon decides it. It is the clearest single number for New York specifically; tax and insurance above are New York state-level figures, so run your exact home and rent before deciding.
Home value and rent are Zillow figures as of 2026-08. Tax and insurance are state averages. See the methodology & sources.
New York home values and rents, 2016 to 2026
New York rent estimate
A typical New York rental asks about $3,615/mo (Zillow Observed Rent Index, Aug 2026), up 4.2% from a year ago and up 37% from five years ago. On a typical $735,000 home with 20% down at 6.95%, the mortgage payment alone is about $3,892/mo before property tax, insurance and maintenance.
Is it better to rent or buy in New York?
Prefilled with New York estimates: a ~$735,000 home (about $147,000 for 20% down) versus ~$3,625/mo rent. New York's effective property tax of 1.23%, near the U.S. average (~1.1%), adds roughly $9,041/yr, and typical homeowners insurance runs about $1,844/yr. Adjust every value above to your actual home.
There's no universal answer. It hinges on how long you'll stay, what you'd earn investing the down payment instead, and New York's tax and insurance costs. Property tax is the biggest local lever: at 1.23% on a $735,000 home that's about $9,041 every year, before insurance and maintenance. The verdict above tells you the year buying pulls ahead, and the appreciation rate that flips the decision.