Rent vs. buy: it’s one of the more pressing choices of adulthood. Many of us may have been taught from a young age that homeownership = success, but being a longtime renter can offer its own kind of stability that shouldn’t be discounted. The truth is that there isn’t a “one size fits all” answer. The decision to rent or buy is a very personal one, and it’s a choice that shouldn’t be taken lightly. Stressed? Never fear: we’re here to help you! Continue reading for some questions to ask yourself when deciding whether you should rent or buy in New York City.

Who’s involved in the decision?

A key piece of information that can help you figure out whether to rent or buy is who you’ll be making this decision with, if anyone. Maybe you’re embarking on this exciting journey by yourself. While that means bearing the economic load of renting or buying alone, it also means you have total control over your vision for your future home. Alternatively, maybe you have a partner who’ll be splitting rent with you, or a parent who’s gifting you a one-time donation to help with your down payment. Financial benefits aside, the more people involved in making your housing dreams come true means the more people you may have to compromise with down the line.

Make a list of your must-haves for your future NYC home, including budget, location, and amenities, and be sure to discuss your needs with others involved in the decision. Having some non-negotiables can help you figure out if renting or buying is the best course of action for everyone involved.

NYC Homes Under $1M on StreetEasy Article continues below

Jackson Heights

34-41 85th Street

$389,000

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1

Woodside

39-76 57th Street

$345,000

1 |

1

Central Harlem

68 Bradhurst Avenue

$800,000

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2

Forest Hills

66-36 Yellowstone Boulevard

$399,000

2 |

1

South Richmond Hill

101-52 102nd Street

$899,999

4 |

2

Forest Hills

72-10 112nd Street

$439,000

2 |

1

Williamsburg

415 Leonard Street

$950,000

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1

Central Harlem

48 West 138th Street

$325,000

Studio |

1

Turtle Bay

310 East 46th Street

$650,000

Studio |

1

Lenox Hill

425 East 63rd Street

$759,000

1 |

1

Murray Hill

5 Tudor City Place

$500,000

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1

Manhattan Valley

420 Central Park West

$595,000

Studio |

1

What’s your current financial situation? And your money goals for the future?

Finances are obviously a huge factor when deciding whether to rent or buy. Purchasing a home comes with a lot of money spent up front: you’ll need to budget for not only a down payment, but closing costs, prepaid property taxes, and homeowners insurance. Over time, however, the costs of maintaining your home could balance out against rising property values in the neighborhood, making it a favorable move compared to renting. Our handy tipping point calculator can help you determine how many years you’d have to live in a home for it to cost less to buy than to rent in NYC.

Buying a home also allows you to build equity, which you can borrow against and use as a financial safety net. Taking out a home equity loan can be extremely beneficial if you’re ever hit with an unexpected financial crisis. You can also use a home equity loan to consolidate debts or help fund home improvements, which in turn raises the value of your property.

On the flip side, renting requires much less money up front (though upfront rental costs in NYC are nothing to sneeze at). As a renter, you’re only on the hook for monthly utilities (water, electricity, etc.) as opposed to maintenance fees or common charges and taxes. Thus, being a long-term renter could prove more beneficial if you have savings or investment goals you’re still trying to reach. Learn more about renter fees and home-buying costs in NYC.

Where do you see yourself in a year? 5 years? 10 years?

When considering whether to rent vs. buy, don’t just evaluate your current lifestyle, finances, and needs: take the time to anticipate your future responsibilities, too. Really thinking about what your life could look like in a year or more can help you decide if homeownership is feasible or even desirable.

For example, if you see yourself staying in your current job for the long haul, or anticipate getting a promotion (and a raise), there’s a good chance you’ll continue to be able to afford the mortgage payment you lock in at time of purchase. However, if you’ve been wanting to make a big career jump or your industry is more gig-based, having the flexibility of a rental might be more prudent. Other factors to contemplate include plans to expand your family, help out older relatives, or move to a different city or neighborhood. While none of us can completely predict the future, it’s important to give some thought to yours while deciding whether to rent or buy a home in NYC.

NYC Rentals Under $3,500 on StreetEasy Article continues below

Jamaica

89-61 162nd Street

$3,102 base rent

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1

Jamaica

89-61 162nd Street

$2,348 base rent

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1

Bushwick

338 Evergreen Avenue

$3,492 base rent

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1

Bedford-Stuyvesant

416A Lafayette Avenue

$3,300 base rent

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1

Flatbush

460 East 29th Street

$2,250 base rent

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1

Crown Heights

30 Rogers Avenue

$2,567 base rent

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1

Weeksville

10 Ford Street

$3,075 base rent

2 |

1

Weeksville

10 Ford Street

$2,613 base rent

1 |

1

Flatbush

3120 Glenwood Road

$2,499 base rent

1 |

1

Canarsie

655 East 85th Street

$3,300 base rent

3 |

2

Astoria

30-92 34th Street

$2,599 base rent

2 |

1

Hamilton Heights

550 West 146th Street

$3,100 base rent

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2

When do you plan to make your decision (aka what’s the current market like)?

So you’ve created your list of housing must-haves, assessed your current financial situation, and gauged your future plans. What’s next? It’s time to consider the current NYC market. Take some time to browse available for-sale or for-rent listings in your desired neighborhoods. Get familiar with the latest median asking prices for sales and rentals using StreetEasy’s Data Dashboard so you’re not blindsided by sticker shock. Investigate current mortgage rates and brush up on the Fair Housing Act. 

While there are a lot of factors outside your control when it comes to renting or buying a home, you can control your own knowledge to ensure you make the most informed decision possible.

What is your “why”?

Before you make a decision about whether to rent or buy, the most important thing to contemplate is your underlying motivation. If you feel pressure to own property because you want to make your family proud or think it’s something you “should” do, take a deep breath and remember you’re allowed to define success on your own terms. On the other hand, if you have the financial means but feel the need to stay renting because you’re afraid of taking a big leap, ask yourself: what would happen if you dreamed a little bigger for yourself? Reconnecting with your true desires will help guide you in the right direction.

Rent vs. buy: There’s no wrong answer!

There’s no denying that the choice to rent or buy is a daunting one. Whichever route you decide to take, StreetEasy is here for you. See our renter’s guide or buyer’s guide for more tips and inspiration. If you’re leaning toward buying, contact the complimentary StreetEasy Concierge for help with the buying process. Our Concierge can match you with a StreetEasy Expert, an experienced buyer’s agent or team who has helped buyers just like you.

StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy Concierge team members are real estate licensees, however they are not your agents or providing real estate brokerage services on your behalf. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property.