Owning vs. Renting in 5 Cities in New York: Which Is Cheaper?

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What does it take to own a house in New York?

To buy a home in New York, you’ve got to add property taxes, maintenance fees and homeowner’s insurance to the cost you’re considering. When these things stack up quickly, renting can be appealing for people who want flexibility without long-term commitments. 

But that’s not always the case with cities in New York.

Generally speaking, the median home price in New York City is approximately $735,000, according to Statista. The average rent for a one-bedroom apartment is $4,250 per month. These figures can help to explain whether it’s to your advantage to own or to live in a rented house. 

In this article, GOBankingRates provides insight into the costs of owning and renting in five cities in the Empire State.

Owning vs. Renting in New York City

A one-bedroom apartment in New York City costs about $4,250 a month in gross rent. Yet, the median monthly housing costs for homeowners stand at about $2,991.

So, in that context, it can appear cheaper on a month-to-month basis, but you still have to undertake some lump sums, such as down payments and closing costs. 

The median home price in NYC as of October 2024 is about $794,000 to own your place in the city. Although homeowners can build equity over time and benefit from tax deductions, they are hit with high upfront costs, including down payments and closing fees.

For one, they don’t accrue equity growth, so rental prices inevitably increase each year, but they avoid huge responsibilities of maintenance and property taxes.

Owning vs. Renting in Brooklyn

At the end of November 2024, the median home price in Brooklyn reached $975,000, up by 2.6% from the previous year, and pricing per square foot was $703. On average, you’ll need to put at least 20% down, or $195,000, and that just covers the down payment.

However, rents in Brooklyn are actually relatively low, with an average of $3,571 per month for one bedroom, compared to the average upfront costs of purchasing.

The major benefit homeownership brings are equity growth and potential appreciation. Other than that, renting seems like a cheaper, more flexible option, but it doesn’t build equity.

Owning vs. Renting in Buffalo

This year, Buffalo is the hottest major housing market. According to a recent press release from Zillow, the area is becoming known more and more as an affordable place to live.

Their average rent for one-bedroom apartments is $1,257 a month. Renting here saves a lot over larger cities while enjoying the ability to access urban amenities.

Currently, Buffalo, with an approximate range of $248,445 for the median home price, is an affordable choice compared to other New York cities. The city’s job market is strong, with the most new jobs created per new home allowed, a signal of increasing demand for housing.

Affordability combined with economic growth are extremely attractive aspects of owning a home in Buffalo.

Owning vs. Renting in Queens

When deciding whether Queens is the place to own or rent, there are a few important financial things to consider first.

The prices are also the ones to know; the median home in Queens costs around $708,343, and its average price per square foot is about $515. But there is a catch: Property taxes and maintenance costs have to be factored in for homeowners.

Arguably less expensive than NYC, especially Brooklyn, Queens offers a more affordable housing option, with average rent for a one bedroom apartment at $2,992. Although not an equity-building opportunity, renting here allows lower upfront costs without maintenance or property taxes.

If you are looking for stability and long term investment potential, buying may be far better.

Owning vs. Renting in Albany

The housing market in Albany is very attractive at this time, with a median home price of around $304,091. One-bedroom apartments are now renting on average around $1,500 per month, offering flexibility but not equity.

The city’s increasing urban development projects and job market also contribute to why buying a home could be a smart investment. If you are considering settling down in Albany, purchasing may offer you more long term benefits than renting.

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