Rent vs buy in Newark, NJ

In Newark, New Jersey, the typical rent is $2,111 /mo and the typical home costs $480,494.

Rent

Over 7 years, renting comes out ahead by $74k

Today's mortgage rate applies, along with 20% down and Newark's typical rent and home value. There's no break-even within 30 years.

An opinion, clearly labelled, with the math shown. These are estimates, not quotes. Change any number and the stamp changes with it.

Renting is ahead by: $74k
Break-even point: 30+ years
Actual cost of owning: $4,596 /mo

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The stamp is based on Newark's typical rent plus its typical home value. A different rent, price or number of years can flip it.

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Is it cheaper to rent or buy in Newark?

Across 7 years, renting costs $73,824 less, including the money you get back when you sell. In every year shown, renting's net cost is below owning's. Buying never reaches the same cost within 30 years.

Rent. Buying. The net cost so far, shown by year.

Newark: average rent vs mortgage payment

Every monthly cost from year 1 at Newark's typical price is listed here. Rent and the mortgage don't tell the whole story.

Each month, year 1	Amount	What it is
Rent	$2,111	All of it, every month
Mortgage payment	$2,620	$2,309 of it is interest in year 1
Property tax	$777	1.94% of the value a year
Insurance	$129	Census median for the city
Upkeep	$400	1% of the value a year
Owning, cash out	$3,926	$311 of it builds equity
Lost return on the down payment	$781	What the cash would earn each year at 8.3%
Buying costs, spread out	$200	3.5% of the price over 7 years
True cost of owning	$4,596	Cash out, less the equity part, plus both lines listed above

Newark verdict: the numbers behind it

Typical home valueZillow ZHVI, September 2026: $480,494
Typical rentZillow ZORI, September 2026: $2,111 /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 Jersey, 1995 to 2025: 4.7% 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, Newark: 1.94% of value
Home insuranceCensus ACS 2020-2024, Newark: $129 /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 flip the result in Newark?

Each line shows the point where Newark's 7-year verdict flips, with everything else held as is.

Renting comes out ahead when

Home prices grow at under 6.5% a year (4.7% is New Jersey's long-run rate, which we use).
The mortgage rate remains above 4.49%.
A similar home rents for under $2,900 a month (the typical cost here is $2,111).
Should you move within the next 30 years, owning will never catch up at these numbers.

Buying comes out ahead when

Home prices grow at a yearly rate above 6.5%.
You lock a mortgage rate under 4.49%. Today's rate is 7.24%.
If you rented that same home, you'd pay more than $2,900 a month.

Newark compared with the other 812 cities

Measure	Newark	Median city
Typical home value	$480,494	$422,451
Typical rent	$2,111 /mo	$1,837 /mo
Price-to-rent ratio	19.0 (#389 of 813)	18.5
Home prices, last 10 years	6.9% a year	6.2% a year
Rents, last 5 years	5.7% a year	4% a year
Property tax	1.94%	0.87%
Households that rent	76%	42%

Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.

More cities in New Jersey

Rent wins by $163k in Paterson, NJ.
Rent wins by $106k in Clifton, NJ.

New Jersey rent vs buy: the state's numbers