Rent vs buy in Union City, NJ
In Union City, New Jersey, the typical rent is $2,343 /mo and a typical home costs $558,656.
Over 7 years, renting comes out ahead by $98k
The math uses Union City's typical home value and typical rent, plus a 20% down payment and today's mortgage rate. No break-even point within 30 years.
This is an opinion, clearly labelled, and the math is shown. Everything here is an estimate, not a quote. Adjust any number and the stamp shifts.
- Renting leads by
- $98k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- What owning really costs
- $5,358 /mo year 1, against $2,343 rent
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In Union City, is it cheaper to rent or buy?
Over 7 years, renting costs less by $98,467, counting the money you get back when you sell. In every year shown, renting's net cost sits under owning's, and owning never catches up inside 30 years.
Rent Owning Running net cost, year by year.
Union City: average rent compared with the mortgage payment
The rent and the mortgage payment don't tell the whole story, so here are all the monthly costs at Union City's typical price in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,343 | All of it, every month |
| Mortgage payment | $3,046 | $2,685 of it is interest in year 1 |
| Property tax | $987 | 2.12% of the value a year |
| Insurance | $80 | Census median for the city |
| Upkeep | $466 | 1% of the value a year |
| Owning, cash out | $4,578 | $361 of it builds equity |
| Lost return on the down payment | $908 | The yearly return on that cash, 8.3% a year |
| Buying costs, spread out | $233 | 3.5% of the price over 7 years |
| True cost of owning | $5,358 | Cash out, minus the equity portion, plus the two lines listed above |
Union City verdict, explained by the math
- Typical home priceZillow ZHVI, September 2026
- $558,656
- Typical rent Zillow ZORI, September 2026
- $2,343 /mo
- Down payment: 20% avoids private mortgage insurance, which this engine doesn't model.
- 20%
- The mortgage rate comes from Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesHouse price index from FHFA, New Jersey, 1995 to 2025
- 4.7% each year
- Rent growthCPI rent of primary residence, with yearly growth over 2006 to 2026
- 3.5% each year
- Savings return60% S&P 500, including dividends, plus 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% each year
- Property tax: Census ACS 2020-2024, Union City
- 2.12% of the value
- Insurance for the homeCensus ACS 2020-2024, Union City
- $80 /mo
- Upkeep: Fannie Mae, 1% to 4%, low end
- 1% of the value each year
- Costs of buying: Freddie Mac, 2% to 5%, middle
- 3.5% of the purchase price
- Costs of sellingAgent fee and closing costs
- 6% of the price
What would change the result in Union City?
Each line marks where the 7-year Union City verdict flips, with everything else left as it is.
Renting wins in these cases
- Home prices rise slower than 6.8% each year. Our figure is 4.7%, a rate New Jersey's seen over the long run.
- The mortgage rate remains above 4.08%.
- A similar home rents for under $3,400 each month (here, the typical rent is $2,343).
- Any time you move within the next 30 years, owning never closes the gap at these numbers.
When buying comes out ahead
- Home prices grow at more than 6.8% a year.
- You lock in a mortgage rate below 4.08%, and today's rate is 7.24%.
- You'd pay more than $3,400 each month to rent that same home.
Union City compared with the other 812 cities
| Measure | Union City | Median city |
|---|---|---|
| Typical home value | $558,656 | $422,451 |
| Typical rent | $2,343 /mo | $1,837 /mo |
| Price-to-rent ratio | 19.9 (#338 of 813) | 18.5 |
| Home prices, last 10 years | 7.8% a year | 6.2% a year |
| Rents, last 5 years | 6% a year | 4% a year |
| Property tax | 2.12% | 0.87% |
| Households that rent | 81% | 42% |
Sources: Zillow ZHVI data and ZORI, Census ACS 2020-2024.
Other New Jersey cities
- Renting. Newark, NJ. Rent comes out ahead by $74k.
- Rent. Jersey City, NJ. Renting comes out ahead by $53k.
- Rent. Paterson, NJ. Renting comes out ahead by $163k.
- Rent. Elizabeth, NJ. Renting comes out ahead by $114k.
- Rent. Trenton, NJ. Renting comes out ahead by $26k.
- Rent. Clifton, NJ. Renting comes out ahead by $106k.
- Rent. Bayonne, NJ. Renting comes out ahead by $122k.
- Rent. East Orange, NJ. Renting comes out ahead by $114k.
- Buy. Camden, NJ. Buying comes out ahead by $77k.
- Rent. Passaic, NJ. Renting comes out ahead by $135k.
- Renting. Vineland, NJ. Rent comes out ahead by $13k.
- Renting. Hoboken, NJ. Rent comes out ahead by $57k.