Pick an apartment, any apartment. Then get ready to pay up! Photo by Bosc D’Anjou.
It’s always a difficult decision whether to rent or buy an apartment, but one metric tracked by StreetEasy makes renting look increasingly attractive right now.
On the Upper West Side, the “tipping point,” or the amount of time it would take for buying a home to become more financially beneficial than renting, is now at 6.2 years, up from 3.2 years as of one year ago, according to Streeteasy. For Manhattan, the tipping point is 7.7 years. For all of New York City, it’s 5.6 years, a full year longer than it was one year ago. The national median is just two years.
Streeteasy attributes the shift in favor of renting to “rising mortgage rates, higher home prices and a softening in the rental market in many parts of New York City.”
Streeteasy explains more and lets you search different neighborhoods here. The site also explains the rationale behind the “tipping point”: “The decision to buy or rent is really a choice between two options: investing in an appreciating asset (a home), or freeing your money for other, potentially higher-yielding investments.”