Free NYC Calculator
NYC Rent vs. Buy Calculator
Rent vs. buy in New York is a different calculation than anywhere else. Mansion tax adds 1–3.9% to the price. Mortgage recording tax adds another 1.8–1.925%. Co-op maintenance can rival a mortgage payment. This calculator folds all of it in — and shows you the exact year when buying overtakes renting given your specific scenario.
NYC Rent vs. Buy
Find your break-even year on a NYC purchase — mansion tax, mortgage recording tax, and co-op maintenance folded in.
20% down · 7% mortgage · $1,100 maint · 3.5% appreciation · 5-year hold
5-year verdict
Rent wins
Break-even year
Year 8
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- Year-by-year cumulative cost projection
- Mansion tax + mortgage recording tax + 6% selling costs
- Equity at sale with appreciation built in
- Toggle hold period from 3 to 30 years
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Why NYC rent vs. buy is different
High upfront costs push break-even later
NYC closing costs for buyers run 3–6% of the purchase price — among the highest in the country. Mansion tax (1%+ on $1M+ purchases), mortgage recording tax (1.8–1.925% of the loan), title insurance, and attorney fees must all be recovered before buying breaks even with renting.
Rent escalation works in a buyer's favor
NYC rents have risen roughly 3% per year on average, with stabilized units capped by DHCR guidelines. Each year that passes, a buyer's fixed mortgage payment looks better against an escalating rent. By year 8–10, the monthly advantage often flips decisively toward owning.
Equity builds faster than most realize
Every mortgage payment reduces the principal balance. After 10 years on a 30-year fixed mortgage, roughly 11% of the original loan is paid off — on top of any appreciation. In a market where $1M purchases are common, that's $110,000+ in principal paydown alone.
The 6% exit cost matters
When you sell, expect to pay roughly 6% of the sale price in broker commissions and NYC/State transfer taxes. This is a real cost of buying — it shifts break-even later and means short holds are expensive. The calculator deducts it from your projected sale proceeds.
Frequently asked questions
How long does it take for buying to beat renting in NYC?
The NYC break-even point averages 6–10 years depending on the neighborhood, purchase price, and interest rate. It's longer than most US cities because NYC closing costs are higher — mansion tax alone is 1% starting at $1M — and the premium to own vs. rent a comparable apartment is significant. If you plan to stay fewer than 5 years, renting usually wins. Beyond 8–10 years, buying typically pulls decisively ahead through equity and locked-in payments.
What is the NYC mansion tax and how does it affect rent vs. buy?
The mansion tax is a one-time buyer-paid transfer tax starting at 1% of the purchase price for sales at $1,000,000 or more. It rises progressively through several tiers, reaching 3.9% for sales over $25 million. Because it's paid upfront at closing, it shifts the break-even point later — buying at $1.05M costs $10,500 in mansion tax alone that must be recovered through appreciation and locked-in payments before buying breaks even.
What is the mortgage recording tax in NYC?
New York City buyers who take a mortgage pay a mortgage recording tax (MRT) at closing: 1.8% of the loan for loans under $500,000, and 1.925% for loans $500,000 and above. On a $700,000 loan, that's $13,475 due at closing. Co-op buyers are exempt because co-ops involve share loans, not recorded mortgages. The MRT is one of the largest and least-understood closing costs in NYC.
Is it better to buy a condo or co-op in NYC?
Condos offer more flexibility — no board approval, easier to rent out, FHA/VA loans accepted — but typically cost 10–20% more than comparable co-ops. Co-ops are cheaper to buy but have higher monthly maintenance (which often covers taxes and the underlying mortgage) and strict board rules around sublets and resale. For a rent-vs-buy analysis, co-op maintenance is a key variable: high maintenance reduces the monthly savings from buying vs. renting.
How much home appreciation should I assume for NYC?
NYC residential prices have appreciated at roughly 3–4% per year on average over the past two decades, though with significant variation by neighborhood and property type. Manhattan condos have underperformed outer borough single-family homes in recent years. The calculator defaults to 3.5%, which is a reasonable long-run estimate. Run it at 2% and 5% to see how sensitive your break-even year is to appreciation.
Does the calculator account for the opportunity cost of the down payment?
The base calculator does not include the investment return a renter could earn on the down payment — this would require an assumed market return rate, which varies widely. The net buy cost shown includes all closing costs, monthly payments, and projected sale proceeds (after 6% selling costs), compared against cumulative rent. For a complete picture, you can approximate the opportunity cost by running the scenario with a lower appreciation rate.
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