Rent vs buy in New York City, NY
In New York City, New York, typical rent is $4,089 /mo and typical home is $825,854.
Over 7 years, the difference is $4,681, making it a toss-up.
This calculation uses New York City's typical rent, home value and today's mortgage rate, with 20% down. The break-even point arrives in year 7.
A clearly marked opinion with the math shown. The figures are estimates, not quotes. If you change a number, the stamp changes too.
- Gap
- $5k after 7 years
- When costs balance
- year 7 when owning catches up
- Actual cost of owning
- $7,042 /mo year 1, against $4,089 rent
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The stamp reflects the typical rent and home value for New York City's market. Your rent, price and years can change the result.
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Enter your rent, price and down payment. The stamp updates with your entries.
Is renting or buying cheaper in New York City?
Across 7 years, the two paths land no more than $4,681 apart, so small changes decide the outcome. In year 7, owning's net cost falls below renting's and remains lower.
Rent. Buy. Net cost to date, by year.
Average rent compared with mortgage payments in New York City
Rent and mortgage payments don't tell the whole story. Here are all monthly costs in year 1 using New York City's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $4,089 | All of it, every month |
| Mortgage payment | $4,503 | $3,969 of it is interest in year 1 |
| Property tax | $578 | 0.84% of the value a year |
| Insurance | $121 | Census median for the city |
| Upkeep | $688 | 1% of the value a year |
| Owning, cash out | $5,890 | $534 of it builds equity |
| Lost return on the down payment | $1,342 | The yearly return on cash at 8.3% |
| Buying costs, spread out | $344 | 3.5% of the price over 7 years |
| True cost of owning | $7,042 | Cash out, minus the equity portion, plus the two items above |
The figures behind New York City's result
- Typical home valueZillow ZHVI, September 2026
- $825,854
- Typical rentZillow ZORI, September 2026
- $4,089 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, New York, 1995 to 2025
- 4.8% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, New York City
- 0.84% of value
- Home insuranceCensus ACS 2020-2024, New York City
- $121 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would change the result in New York City?
Each line shows where New York City's 7-year result changes while all other factors stay the same.
Renting wins if
- With annual home price growth below 4.7%, we apply New York's long-term rate of 4.8%.
- The mortgage rate remains above 7.34%.
- A similar home rents for less than $4,040 each month, while the typical rent here is $4,089.
- Your move happens before year 7.
When buying wins
- Home prices rise by more than 4.7% a year.
- You secure a mortgage rate under 7.34% (today's is 7.24%).
- If you rented the same home, your monthly cost would exceed $4,040.
- Your stay lasts 7 years or longer.
How New York City compares with 812 other cities
| Measure | New York City | Median city |
|---|---|---|
| Typical home value | $825,854 | $422,451 |
| Typical rent | $4,089 /mo | $1,837 /mo |
| Price-to-rent ratio | 16.8 (#501 of 813) | 18.5 |
| Home prices, last 10 years | 3.3% a year | 6.2% a year |
| Rents, last 5 years | 6.4% a year | 4% a year |
| Property tax | 0.84% | 0.87% |
| Households that rent | 67% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.