Rent vs. Buy Calculator in New York (2026)
Is it better to rent or buy a home in New York? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$870,000
60m² · $14,500/m²
Down Payment
$174,000
20% of purchase price
Monthly Mortgage
$4,527
6.1% rate · 25yr term
Monthly Rent
$3,500
City centre
📅 Break-even point: Year 8
Buying becomes cheaper than renting after 8 years in New York, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately $43,181 vs renting.
Cumulative Cost Comparison — New York
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $64,319 | $27,384 | $900,450 | 🔴 Rent |
| 2 | $92,006 | $55,005 | $931,966 | 🔴 Rent |
| 3 | $117,776 | $82,829 | $964,585 | 🔴 Rent |
| 4 | $141,540 | $110,818 | $998,345 | 🔴 Rent |
| 5 | $163,203 | $138,931 | $1,033,287 | 🔴 Rent |
| 6 | $182,666 | $167,121 | $1,069,452 | 🔴 Rent |
| 7 | $199,826 | $195,336 | $1,106,883 | 🔴 Rent |
| 8 | $214,573 | $223,521 | $1,145,624 | 🟢 Buy |
| 9 | $226,791 | $251,612 | $1,185,721 | 🟢 Buy |
| 10 | $236,361 | $279,542 | $1,227,221 | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: $4,527
Maintenance: $1,088
Property Tax: $400
Total Monthly: $6,014
Does not include down payment of $174,000
Renting
Monthly Rent: $3,500
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $3,500
Rent increases 3%/yr in projection
Can you afford to buy in New York?
Monthly net income: $5,404
Monthly mortgage: $4,527
Mortgage-to-income ratio: 83.8%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: $208,800
At 20% savings rate, years to save: 16.1 years
Notes & Assumptions
This calculator uses the following assumptions for New York in 2026: property price $14,500/m² × 60m², mortgage rate 6.1% over 25 years, 20% down payment, transaction costs 4.0%, annual maintenance 1.5%, property appreciation 3.5%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. 30yr fixed ~6.1% (Bankrate Mar 2026). NYC mansion tax >$1M. Co-op board approval required.
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in New York in 2026?
Based on 2026 data, buying a home in New York typically becomes financially advantageous after 8 years, once property appreciation and equity are factored in. With a mortgage rate of 6.1% and estimated annual appreciation of 3.5%, buying makes sense for long-term residents.
How much do you need to earn to buy in New York?
A typical 60m² apartment in New York costs approximately $870,000 in 2026. With a 20% down payment of $174,000, the monthly mortgage is $4,527. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $181,079 per year to comfortably afford this purchase in New York.
What is the price-to-rent ratio in New York?
The price-to-rent ratio in New York is approximately 26x in 2026 — meaning it takes 26 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. New York's ratio of 26 suggests renting is likely more efficient for shorter horizons.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.