Quick answer
In New York, buying breaks even around year 19. Monthly ownership cost $5,739 vs 2BR rent $4,500/mo. If you plan to stay 19+ years, buy. Less, rent.
Rent vs Buy · NY
Rent vs Buy in New York (2026)
Real math using NY's 1.73% property tax rate, $1,450/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Buy after year 19
If you stay 19+ years in New York, buying pulls ahead of renting + investing the down payment. Less than 19 years, rent and invest the difference.
Monthly Cost Breakdown
Buying
$5,739/mo
Mortgage P&I
$600,000 loan, 30yr @ 6.8%
$3,912
Property tax
1.73% of assessed (NY avg)
$1,081
Homeowners insurance
$1,450/yr NY avg
$121
Maintenance
1%/yr of home value
$625
Cash at close: ~$168,750 ($20% down + fees)
Renting
$4,500/mo
2BR rent (median)
New York market rate
$4,500
Renters insurance
~$15/mo typical
$15
Down payment invested
$150,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,239 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $869,456 | $-248,439 | $-1,457 | $-246,982 |
| Year 10 | $1,007,937 | $-385,623 | $-175,208 | $-210,414 |
| Year 15 | $1,168,476 | $-482,287 | $-372,315 | $-109,972 |
| Year 30 | $1,820,447 | $-327,529 | $-825,291 | +$497,761 |
Break-even: year 19.That's when accumulated home equity minus ownership costs finally exceeds the renter's invested portfolio.
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in New York?
In New York with a 20% down payment on a median $750K home at 6.8% mortgage rate, buying breaks even around year 19. If you plan to stay less than 19 years, renting wins financially. If you'll stay 19+ years, buying pulls ahead.
What's the monthly cost of owning a home in New York?
On a median $750K home with 20% down at 6.8% fixed rate: mortgage P&I $3,912, property tax $1,081 (1.73% of assessed value), homeowners insurance $121 (NY average $1,450/year), and maintenance $625 (1% of home value/year). Total: $5,739/month.
How much down payment do I need to buy in New York?
20% down on a median New York home ($750K) is $150,000. Plus closing costs of roughly 2.5% ($18,750). Total cash-to-close: about $168,750. FHA loans allow 3.5% down ($26,250) but require mortgage insurance that adds ~$292/month.
What's the 10-year cost of renting vs buying in New York?
Over 10 years in New York: renters pay $619,049 in cumulative rent but have $443,841 invested (assuming 7% return on the $150,000 down payment + monthly savings). Buyers have paid $820,658 in total ownership costs and hold $495,511 in home equity. Net: renting is ahead by $210,414 at year 10.