The rent vs. buy question in New York isn't really about monthly payments. It's about the large one-time costs of buying and selling, and how many years you have to spread them over. The calculator compares the full cost of owning against renting a similar apartment, including what your down payment would have earned if you had invested it instead. Change the years you'll stay to find your break-even point.
What goes into each side
| Buying | Renting |
|---|---|
| Down payment and closing costs (2%–5%) | Monthly rent, rising each year |
| Mortgage payments (interest is the real cost; principal builds equity) | Renters insurance |
| Maintenance or common charges plus property taxes | Your down payment stays invested and grows |
| Selling costs (broker and transfer taxes, about 6%–7%) | |
| Minus: sale price and the equity you keep |
Example: $900,000 Brooklyn condo vs. $4,200 rent
With 20% down, a 6.25% mortgage, 3% yearly price growth, rent rising 3.5% a year and savings earning 5%:
| Years | Net cost of buying | Net cost of renting | Cheaper option |
|---|---|---|---|
| 3 | $192,000 | $125,000 | Rent by $67,000 |
| 7 | $327,000 | $311,000 | Rent by $16,000 |
| 8+ | Lines cross | Buying starts to win | |
NYC costs that change the answer
- Mansion tax: buyers pay 1% on homes of $1 million to $2 million, rising in steps above that.
- Mortgage recording tax: about 1.8% to 1.925% of the loan on condos and houses. Co-op loans don't pay it, which is one reason co-ops can win sooner.
- Monthly charges: co-op maintenance often runs 2% to 3% of the price a year, and condo common charges plus taxes 1.8% to 2.4%.
- Selling costs: broker commission plus the NYC transfer tax (1% to 1.425%) and New York State transfer tax (0.4% to 0.65%).
- Rent regulation: if you hold a rent-stabilized lease well below market, renting almost always wins.
When buying tends to win
- You're confident you'll stay 8 to 10 years or more.
- You can put 20% or more down without draining your emergency fund.
- The apartment's monthly charges are reasonable for the building.
- Comparable rents in the building are high relative to purchase prices.
When renting tends to win
- You might change jobs or cities within five years.
- Prices in the neighborhood are flat, or monthly charges are high.
- You'd otherwise invest the down payment and earn a solid return.
Related: see current prices in NYC home prices, check whether you'd pass the 40× rent rule, and estimate your take-home pay.
Frequently asked questions
Is it better to rent or buy in NYC?
It depends mainly on how long you'll stay. Because buying and selling in NYC costs roughly 8% to 12% of the price in total, owning usually needs 6 to 10 years to beat renting a comparable apartment, assuming normal price growth and mortgage rates around 6%.
What is the break-even point for buying in NYC?
With 20% down, a 6.25% mortgage, 3% yearly price growth and 3.5% yearly rent increases, a typical NYC condo breaks even after about 7 to 9 years. Lower rates, cheaper co-ops or faster appreciation shorten it; high monthly charges lengthen it.
Why are NYC closing costs so high?
Buyers pay the mansion tax (1% and up on homes of $1 million or more), the mortgage recording tax (about 1.8% to 1.925% of the loan on condos and houses, but not co-ops), title insurance, attorney fees and bank fees. Sellers pay the NYC and NYS transfer taxes plus broker commission.
Are co-ops cheaper to buy than condos?
Co-ops are typically 25% to 40% cheaper to buy and avoid the mortgage recording tax and title insurance, but their monthly maintenance (which includes property taxes) is often higher, and boards require larger down payments and strict financial reviews.
Does the calculator include tax deductions?
No. Mortgage interest and property tax deductions only help if you itemize, and the federal cap on state and local tax deductions limits them for many New Yorkers. Leaving them out keeps the comparison conservative.
Sources & methodology
Prices are compiled from published provider price lists, government fee schedules and quotes, then adjusted for 2026. See how we price.