Rent vs Buy in New York, NY: Should You Rent or Buy a Home?
In New York, NY, the median home is worth $777,600 and a typical 3-bedroom rental costs $2,123 a month. With the latest 7.24% average mortgage rate (2026-10-29), renting and investing the difference comes out ahead after 20 years by $939,514 ($573,358 in today's dollars). Buying doesn't catch up within 30 years at today's rate, and the same at 6% or 5%.
Data: U.S. Census Bureau ACS 2020–2024 · Mortgage rate 7.24% (Freddie Mac, 2026-10-29) · Updated 2026-11-01 · How we calculate
Calculator
Start typing a county, city or ZIP code, then pick it from the list.
Using local Census figures for New York, NY.
$155,600
30-yr avg 7.24% on 2026-10-29
$5,368 a year
Fine-tune assumptions (growth, inflation, costs, taxes)
After 20 years in New York, NY
Renting comes out ahead by $939,514
$573,358 in today's dollars. At these numbers buying doesn't catch up within 30 years. Buying wins over 20 years if comparable rent is above $3,797/mo (you entered $2,123).
If you buy
- Home value
- $1,548,056
- Mortgage still owed
- −$361,455
- Selling costs
- −$92,883
- Tax on home sale
- −$60,575
- You walk away with
- $1,033,143
If you rent and invest
- Cash not spent on buying
- $178,940
- Monthly savings invested
- $818,782
- Growth at 6.0%, after tax
- +$974,935
- You walk away with
- $1,972,657
Both cards are in year-20 dollars.
Monthly cost in year 1
- Mortgage (principal + interest)
- $4,242
- Property tax
- $447
- Home insurance
- $454
- Maintenance
- $648
Principal isn't really a cost — it becomes equity. The comparison that matters is the money you never get back, below.
What your numbers mean
In the first year, owning costs about $5,791 a month: $4,242 mortgage payment, $447 property tax, $454 insurance, $648 upkeep. Renting a comparable home costs $2,123. So the renter has $3,668 a month left over, and invests it — on top of the $178,940 down payment and closing costs they never had to spend.
Rent rises 3.5% a year, so within 20 years it never catches up with the cost of owning (taxes, insurance and upkeep grow with the home's value too).
After 20 years the home is worth $1,548,056 (growing 3.5% a year from $778,000). You still owe $361,455 on the mortgage and pay about $92,883 to sell plus $60,575 capital gains tax, leaving $1,033,143 in equity.
The renter's investments, earning 6.0% a year, grow to $1,972,657 after 15% tax on the gains. That only happens if the money really is invested every month — renting and spending the difference makes buying the better choice almost everywhere.
Renting leaves you $939,514 richer after 20 years. With inflation at 2.5% a year, a dollar then buys what 61 cents buys today, so the gap is worth $573,358 in today's money.
The result holds up: none of the alternative scenarios below (faster or slower price growth, a lower rate, different investment returns) changes which option wins.
Total cost over 20 years
| Where the money goes | Amount |
|---|---|
| Down paymentequity | $155,600 |
| Mortgage principalequity | $260,945 |
| Closing costs | $23,340 |
| Mortgage interest | $757,050 |
| Property tax | $151,811 |
| Insurance | $154,011 |
| Maintenance | $220,016 |
| Selling costs | $92,883 |
| Total paid to buy and own | $1,815,656 |
| Money you never get back | $1,459,686 |
| Rent | $720,453 |
| Renter's insurance | $4,598 |
| Money you never get back renting | $725,051 |
“Equity” rows are savings locked in the home, not costs. Figures are in future (nominal) dollars.
What would change the answer?
Nobody knows future home prices, rents or market returns. Each row below reruns your exact numbers with just one thing changed, so you can see which assumptions matter. Rows marked “Answer flips” change the winner.
| What if… | Who comes out ahead, and by how much |
|---|---|
| Nothing changes — your numbers, staying 20 years | Renting ahead by $939,514 |
| Home prices grow 2% a year instead of 3.5% | Renting ahead by $1,149,648 |
| Home prices grow 5% a year instead of 3.5% | Renting ahead by $649,024 |
| Your mortgage rate is 6.24% instead of 7.24% | Renting ahead by $744,917 |
| Investments earn 4% a year instead of 6% | Renting ahead by $516,009 |
| Investments earn 8% a year instead of 6% | Renting ahead by $1,508,420 |
| Rent rises 4.5% a year instead of 3.5% | Renting ahead by $831,290 |
| You stay 15 years instead of 20 | Renting ahead by $608,115 |
| You stay 25 years instead of 20 | Renting ahead by $1,379,423 |
Year-by-year breakdown
| Year | Home value | Loan balance | Owning / yr | Rent / mo | Net worth (buy) | Net worth (rent) | Difference |
|---|---|---|---|---|---|---|---|
| 1 | $805,230 | $616,364 | $69,494 | $2,123 | $140,552 | $232,918 | −$92,366 |
| 2 | $833,413 | $609,877 | $70,145 | $2,197 | $173,531 | $289,489 | −$115,957 |
| 3 | $862,583 | $602,904 | $70,818 | $2,274 | $207,924 | $348,802 | −$140,878 |
| 4 | $892,773 | $595,409 | $71,515 | $2,354 | $243,798 | $411,015 | −$167,217 |
| 5 | $924,020 | $587,353 | $72,237 | $2,436 | $281,226 | $476,295 | −$195,069 |
| 6 | $956,361 | $578,694 | $72,984 | $2,521 | $320,285 | $544,818 | −$224,533 |
| 7 | $989,833 | $569,387 | $73,757 | $2,610 | $361,056 | $616,772 | −$255,716 |
| 8 | $1,024,477 | $559,383 | $74,557 | $2,701 | $403,626 | $692,356 | −$288,730 |
| 9 | $1,060,334 | $548,631 | $75,385 | $2,796 | $448,083 | $771,778 | −$323,694 |
| 10 | $1,097,446 | $537,073 | $76,242 | $2,893 | $494,526 | $855,260 | −$360,734 |
| 11 | $1,135,856 | $524,651 | $77,129 | $2,995 | $540,600 | $943,038 | −$402,439 |
| 12 | $1,175,611 | $511,298 | $78,047 | $3,100 | $585,716 | $1,035,361 | −$449,645 |
| 13 | $1,216,758 | $496,947 | $78,997 | $3,208 | $632,944 | $1,132,492 | −$499,548 |
| 14 | $1,259,344 | $481,521 | $79,980 | $3,320 | $682,396 | $1,234,709 | −$552,313 |
| 15 | $1,303,421 | $464,940 | $80,998 | $3,436 | $734,195 | $1,342,309 | −$608,115 |
| 16 | $1,349,041 | $447,118 | $82,052 | $3,557 | $788,467 | $1,455,604 | −$667,138 |
| 17 | $1,396,258 | $427,963 | $83,142 | $3,681 | $845,348 | $1,574,925 | −$729,577 |
| 18 | $1,445,127 | $407,373 | $84,270 | $3,810 | $904,984 | $1,700,623 | −$795,639 |
| 19 | $1,495,706 | $385,242 | $85,438 | $3,943 | $967,528 | $1,833,069 | −$865,542 |
| 20 | $1,548,056 | $361,455 | $86,647 | $4,081 | $1,033,143 | $1,972,657 | −$939,514 |
| 21 | $1,602,238 | $335,887 | $87,898 | $4,224 | $1,102,002 | $2,119,802 | −$1,017,800 |
| 22 | $1,658,316 | $308,406 | $89,193 | $4,372 | $1,174,290 | $2,274,946 | −$1,100,656 |
| 23 | $1,716,357 | $278,867 | $90,533 | $4,525 | $1,250,203 | $2,438,555 | −$1,188,352 |
| 24 | $1,776,430 | $247,117 | $91,921 | $4,684 | $1,329,951 | $2,611,124 | −$1,281,174 |
| 25 | $1,838,605 | $212,991 | $93,356 | $4,848 | $1,413,755 | $2,793,177 | −$1,379,423 |
| 26 | $1,902,956 | $176,311 | $94,842 | $5,017 | $1,501,852 | $2,985,269 | −$1,483,417 |
| 27 | $1,969,559 | $136,885 | $96,380 | $5,193 | $1,594,494 | $3,187,986 | −$1,593,492 |
| 28 | $2,038,494 | $94,508 | $97,972 | $5,375 | $1,691,950 | $3,401,952 | −$1,710,002 |
| 29 | $2,109,841 | $48,959 | $99,620 | $5,563 | $1,794,505 | $3,627,824 | −$1,833,318 |
| 30 | $2,183,686 | $0 | $101,325 | $5,757 | $1,902,466 | $3,866,301 | −$1,963,835 |
Difference is positive when buying is ahead. Each row assumes you sell at the end of that year.
Renting vs buying in New York, NY: the local numbers
Median home value
$777,600
Median rent, 3-bedroom
$2,123
Price-to-rent ratio
30.5
leans toward renting
Property tax rate
0.69%
The typical owner-occupied home in New York, NY is worth $777,600, and the median rent for a 3-bedroom rental is $2,123 a month including utilities. That's a price-to-rent ratio of 30.5 — the home costs 30.5 years of rent — compared with 19.3 across New York and 17.5 nationally. By that rule of thumb the local market leans toward renting.
Between the 2015–2019 and 2020–2024 Census surveys, home values here rose 23% and median rent rose 26%. Recent growth is not a forecast: the calculator uses long-run averages by default, and you can change them.
Homeowners pay an effective property tax rate of 0.69%, well below the 0.94% national rate — about $5,365 a year on the median home. Property tax is money a renter never pays directly, so high-tax areas need more appreciation for buying to pay off.
The median household earns $80,483, so the median home costs 9.7× a year's income (4.1× nationally), and 33% of households own their home. Renters spend a median 31% of income on rent.
| Compared with | New York | New York | United States |
|---|---|---|---|
| Median home value | $777,600 | $423,800 | $332,700 |
| Median rent, all rentals | $1,821 | $1,621 | $1,413 |
| Median rent, 2 bedrooms | $1,827 | $1,620 | $1,407 |
| Median rent, 3 bedrooms | $2,123 | $1,828 | $1,584 |
| Price-to-rent ratio | 30.5 | 19.3 | 17.5 |
| Effective property tax rate | 0.69% | 1.30% | 0.94% |
| Median household income | $80,483 | $85,974 | $80,734 |
| Home value ÷ income | 9.7× | 4.9× | 4.1× |
| Homeownership rate | 33% | 54% | 65% |
| Home value change, 5 yrs | +23% | +30% | +47% |
| Rent change, 5 yrs | +26% | +27% | +33% |
Compare nearby:
Source: U.S. Census Bureau, American Community Survey 5-year estimates (2020–2024; 5-year changes vs 2015–2019). Home values are owners' estimates; rents include utilities and reflect all current renters, so new leases are often higher.
How the mortgage rate changes the answer in New York
The same $778,000 home and $2,123 rent, 20% ($155,600) down, staying 20 years, with prices and rents growing 3.5% a year and investments earning 6%. Only the rate changes; adjust any of these in the calculator above.
| Mortgage rate | After 20 years | Break-even |
|---|---|---|
| 7.24% (latest average) | Renting ahead by $939,514 | Buying doesn't catch up within 30 years |
| 6% | Renting ahead by $699,234 | Buying doesn't catch up within 30 years |
| 5% | Renting ahead by $513,593 | Buying doesn't catch up within 30 years |
Over the last five years of Census surveys (2015–2019 to 2020–2024), New York's median home value rose 23% and median rent rose 26%, against 30% and 27% across New York.
New York compared with similar cities
The 5 cities whose price-to-rent ratio is closest to New York's (30.5), run with the same assumptions.
| City | Median home value | Rent | Price-to-rent | Property tax | After 20 years |
|---|---|---|---|---|---|
| New York, NY | $777,600 | $2,123 | 30.5 | 0.69% | Renting by $940k |
| Los Angeles, CA | $921,200 | $2,557 | 30.0 | 0.65% | Renting by $1.08M |
| San Jose, CA | $1,233,200 | $3,479 | 29.5 | 0.73% | Renting by $1.48M |
| Oakland, CA | $929,900 | $2,369 | 32.7 | 0.91% | Renting by $1.32M |
| San Francisco, CA | $1,394,500 | $3,469 | 33.5 | 0.72% | Renting by $1.93M |
| Long Beach, CA | $806,600 | $2,467 | 27.2 | 0.69% | Renting by $829k |
| New York (state) | $423,800 | $1,828 | 19.3 | 1.30% | Balanced |
Other New York cities: Buffalo.
Renting vs buying in New York: common questions
Is it cheaper to rent or buy in New York, NY?
With typical local prices and rents and a 7.24% mortgage, renting and investing the difference leaves you $939,514 better off after 20 years. In year one, owning the median home costs about $5,791 a month against $2,123 in rent, but the answer depends mostly on how long you stay.
How long do you need to stay in New York for buying to pay off?
Buying doesn't catch up within 30 years at today's rate, and the same at 6% or 5%. On the median New York home, buying costs about $23,340 in closing costs and selling about $46,656 at today's price, and price growth and loan paydown have to earn that back before buying comes out ahead.
What is the price-to-rent ratio in New York?
30.5: the median home costs 30.5 years of median 3-bedroom rent, compared with 19.3 across New York and 17.5 nationally. By the usual rule of thumb (under 15 favors buying, over 20 favors renting) the New York market leans toward renting.
How high are property taxes in New York?
Homeowners pay an effective 0.69% of their home's value a year, well below the 0.94% national rate. On the $777,600 median home that's about $5,365 a year, a cost renters don't pay directly.