Rent or buy? It takes 6 years to recoup cost of purchasing a home in NYC

TRD NEW YORK /
May.May 17, 2013 02:30 PM

The old calculus of buying versus renting hinges on a host of personal factors, not least of which is the investment cost. In New York City, an average home buyer needs to spend 6.1 years in a chosen dwelling to recoup the cost of purchasing that unit, according to new figures from Zillow. 

Depending on how long a resident wants to live in a given home, that time investment could tip the scales toward one option or the other. Of course, the break-even point varies widely across neighborhoods.

The three neighborhoods with the lengthiest time investments are Manhattan’s Carnegie Hill and the West Village and Brooklyn’s Manhattan Beach. Average residents need to stay in their purchased homes for 11.9 years, 10.6 years and 10.2 years, respectively, to break even.

On the other end of the spectrum, the Parkchester section of the Bronx ranks as the neighborhood with the shortest break-even point — 2.5 years — followed closely by the Bronx’s Melrose and Belmont, which have respective break-even times of 3.2 and 3.4 years.

Meanwhile, for both the Upper West Side and the Upper East Side, the time is just shy of 9 years. In the hot Chelsea market, it would take 6.7 years to recoup the costs. —Zachary Kussin


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Placeholder image

Zillow to pay $50M for StreetEasy

Rich Barton (Credit: iStock)

Here’s why Zillow is getting brokerage licenses

StreetEasy CEO Richard Barton and RealDirect CEO Doug Perlson (Credit: JD Lasica via Flickr, RealDirect)

Zillow is officially a New York brokerage. But listing platform says it’s not what you think

Welcome to the broker hunger games: Only “the strong will survive.” (Photo credit: Lionsgate)

Welcome to the broker hunger games

This just in: Zillow co-founder launches LA-focused tech industry news site

This just in: Zillow co-founder launches LA-focused tech industry news site

Zillow CEO Rich Barton (Credit: JD Lasica via Flickr, iStock)

Zillow hit with a second Premier Agent class action

News Corp. CEO Robert Thomson (Credit: Getty Images, iStock)

Everyone’s rushing to be an iBuyer — except for Realtor.com

arrow_forward_ios
Loading...