Rent vs buy in Elizabeth, NJ
In Elizabeth, New Jersey, typical rent is $2,230 /mo and typical home value is $552,348.
Renting comes out ahead by $114k over 7 years
With a 20% down payment and today's mortgage rate, the figures use Elizabeth's typical rent and home value. No break-even point occurs within 30 years.
Clearly labeled opinion with the math shown. Estimates, not quotes. Adjust any number and the stamp will change.
- Renting leads by
- $114k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Actual cost of ownership
- $5,389 /mo year 1, against $2,230 rent
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Is it cheaper to rent or buy in Elizabeth?
Over 7 years, renting costs $113,772 less, including the money returned to you when you sell. In every year shown, renting's net cost is lower than owning's, and owning does not make up the difference during the 30-year period.
Renting. Owning. Net cost for each year to date.
Average rent compared with mortgage payment in Elizabeth
At Elizabeth's typical price, every monthly cost in year 1 is included here, not just rent and the mortgage.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,230 | All of it, every month |
| Mortgage payment | $3,011 | $2,654 of it is interest in year 1 |
| Property tax | $1,026 | 2.23% of the value a year |
| Insurance | $120 | Census median for the city |
| Upkeep | $460 | 1% of the value a year |
| Owning, cash out | $4,618 | $357 of it builds equity |
| Lost return on the down payment | $898 | Annual return on the cash: 8.3% |
| Buying costs, spread out | $230 | 3.5% of the price over 7 years |
| True cost of owning | $5,389 | Take the cash out, subtract the equity portion and add the two amounts listed above. |
Numbers behind the Elizabeth decision
- Typical home value: Zillow ZHVI, September 2026
- $552,348
- Typical rent Zillow ZORI, September 2026
- $2,230 each month
- With 20% down, you avoid private mortgage insurance, but the engine doesn't include it.
- 20%
- Rate used: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home prices: FHFA house price index covering New Jersey, 1995 to 2025
- 4.7% yearly
- Rent growthCPI primary-residence rent, yearly growth 2006 to 2026
- 3.5% yearly
- Return on savings60% S&P 500 including dividends, 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% yearly
- Property tax dataCensus ACS 2020-2024, Elizabeth
- 2.23% of the value
- Home insurance dataCensus ACS 2020-2024, Elizabeth
- $120 /mo
- Maintenancesource: Fannie Mae, 1% to 4%, low end
- Each year, the amount equals 1% of value.
- Costs of buyingFreddie Mac, 2% to 5%, midpoint
- This amount is 3.5% of price.
- Sale expenses: Agent commission plus closing costs
- 6% of the price
What would flip the Elizabeth result?
At each point shown, the 7-year Elizabeth verdict changes. Everything else remains unchanged.
Renting comes out ahead when
- For the calculation, 4.7% represents New Jersey's long-run rate. Home prices grow below 7.1% a year.
- The mortgage rate remains above 3.53%.
- A similar home rents for under $3,450 a month (the typical cost here is $2,230).
- If you move at any point over the next 30 years, owning still never catches up with these numbers.
Buying wins if
- Home prices increase by more than 7.1% a year.
- You lock in a mortgage rate below 3.53%, while today's rate is 7.24%.
- You would pay more than $3,450 each month to rent that same home.
Elizabeth compared with the other 812 cities
| Measure | Elizabeth | Median city |
|---|---|---|
| Typical home value | $552,348 | $422,451 |
| Typical rent | $2,230 /mo | $1,837 /mo |
| Price-to-rent ratio | 20.6 (#303 of 813) | 18.5 |
| Home prices, last 10 years | 9.9% a year | 6.2% a year |
| Rents, last 5 years | 5.3% a year | 4% a year |
| Property tax | 2.23% | 0.87% |
| Households that rent | 74% | 42% |
Sources: Zillow's ZHVI and ZORI, Census ACS 2020-2024.
Cities besides Elizabeth in New Jersey
- Rent. Newark, NJ. Renting comes out ahead by $74k.
- Rent. Jersey City, NJ. Renting saves $53k.
- Rent. Paterson, NJ. Renting saves $163k.
- Rent. Trenton, NJ. Renting saves $26k.
- Rent. Clifton, NJ. Renting saves $106k.
- Rent. Bayonne, NJ. Renting saves $122k.
- Rent. East Orange, NJ. Renting saves $114k.
- Buy. Camden, NJ. Buying saves $77k.
- Rent. Passaic, NJ. Renting saves $135k.
- Rent. Union City, NJ. Renting saves $98k.
- Rent. Vineland, NJ. Renting saves $13k.
- Rent. Hoboken, NJ. Renting comes out ahead by $57k.