Rent vs Buy Calculator — New York
New York mixes high property tax, a mansion tax on pricier homes, co-op friction, and very high rents. See why the break-even often sits far out.
These are estimates using standard formulas (loan amortization and the common 28%/36% guideline). They are not financial or real-estate advice — confirm any number with a lender or broker.
How the numbers are calculated
The calculator totals the cash you would spend buying (down payment, about 3% closing costs, mortgage principal and interest, property tax, insurance, maintenance, and PMI) and subtracts the equity you build, then compares it to total rent minus what your down payment could have earned if invested. The break-even year is when buying pulls ahead of renting on your inputs.
New York housing facts
New York State has above-average property taxes (about 1.6%), and NYC adds co-op and condo considerations that change the monthly math. Outside the city, suburban counties vary widely. Mortgage rates follow national averages near 6.5%.
Worked examples
Example: a $650,000 suburban NY home, 7-year stay
With 20% down at 6.6%, principal and interest is about $3,321 a month. Property tax near 1.6% adds about $867 a month, insurance $110 and maintenance $220, so ownership runs near $4,518. A comparable rent might be $3,200; on these numbers buying pulls ahead around year 5. Drop the rent to $3,000 and the break-even slips to about year 6, while at $2,400 it stretches past 14 years. The high carrying cost is why New York often rewards a long stay.
Example: a $1,000,000 NYC condo with mansion tax
Above $1 million, New York’s mansion tax adds about 1% of the price at closing, and condo or co-op fees act like extra upkeep. Those upfront and monthly costs mean even with steep rents, buying needs a very long hold — often a decade or more — to justify.
The New York mansion tax and co-op friction
New York State imposes a mansion tax on homes above $1 million (a sliding rate starting near 1%), and NYC condos and co-ops add monthly fees and a board-approval process that renters avoid. Those costs sit on top of already high prices and push the true cost of buying well above the loan payment.
Steep rents delay the break-even
New York rents are among the highest in the country, which should favor buying — but the equally high carrying costs and closing friction mean the crossover point is often many years out. The calculator weighs both sides so you see the actual hold time required.
When this calculator does not apply
NYC co-op rules can restrict financing, subletting and renovations in ways a calculator cannot capture, and the mansion tax is only one of several transfer taxes. Get a local closing-cost estimate before deciding.
Data sources & last update
Tax rates and home prices are typical published values (Tax Foundation, FHFA, state revenue departments, Insurance Information Institute) and are examples updated for 2026. They are not a quote — confirm current figures with a lender or local assessor before acting. HomeMath runs entirely in your browser; nothing you type is uploaded.
Frequently asked questions
What is the New York mansion tax?
It is a state transfer tax on homes above $1 million, starting near 1% of the price and rising in sliding brackets. It is paid at closing and adds to the upfront cost of buying in New York, pushing the break-even further out.
Do high rents make buying a better deal in New York?
High rents favor buying in theory, but New York’s high property tax, mansion tax, co-op fees and closing costs offset much of that. The net effect is often a long hold requirement before buying wins, which the calculator shows explicitly.