It may seem strange to describe buying a home in New York City as “cost-effective,” but that’s exactly what NYC real estate site StreetEasy found in a new study released yesterday.
The study analyzes a number of factors including property taxes, purchase costs, broker’s fees and rental insurance to estimate the “tipping point” in various New York neighborhoods when it becomes cheaper to buy than it is to rent.
Across the city, the median tipping point was a surprisingly short 4.9 years. It takes around 7.4 years for the cost of renting to exceed those of buying in Manhattan, but only 3 years in Queens.
The time period varies greatly by neighborhood. Tribeca, Nolita and Soho all have tipping points of over 30 years. Meanwhile, it becomes more cost-effective to buy than rent in West Harlem and Roosevelt Island after just about a year.
Of course, you still have to come up with the money for a down payment if you want to save cash in the long run. Check out the map below to see the tipping point in your neighborhood.