Why Two-Thirds of New Yorkers Rent, Not Buy

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Why Two-Thirds of New Yorkers Rent, Not Buy

Once you’ve taken the first tentative steps to independence and found yourself a job, you will probably proceed to secure a good home for yourself. However, if you have just started looking into the housing market in New York, you might have realized that it is not very welcoming to those looking to become first-time homeowners! In fact, a vast majority of New York’s citizens rent their homes rather than buy them. Should you follow in their footsteps? Is it really the best choice to rent a property? Well, we are here to explain why two-thirds of New Yorkers rent, not buy their homes, and hopefully give you the answer to the question of whether or not you should do the same.

The cost of a home

The first and perhaps foremost reason why New Yorkers rent a property is the price of purchasing a house or apartment. The ‘average’ cost of getting yourself a home is around four hundred thousand dollars. That’s almost half a million! And we should still keep in mind that this is an average cost, covering some of the least desirable locations and living conditions. If we consider prime locations, such as those that would allow easy commute to work, the prices easily soar to more than double the average price. This means that if you are looking to purchase an apartment or a house in a popular neighborhood, you are looking at a down payment of one hundred to two hundred thousand dollars. This is simply not a price most families (or young professionals) can afford, even with taking out a mortgage.

A miniature of a house and a set of keys, representing why two-thirds of New Yorkers rent, not buy.

Homeownership is not as carefree as typically represented, which is why many New Yorkers rent, not buy!

The cost of upkeep

Unfortunately, even if you have purchased the apartment of your dreams and found a good moving company, moved to the new home, and ensured easy transport to your new place, your worries don’t simply end there. First, there are the costs you are sure to encounter: The utility bills. Water, electricity, television, internet… the list goes on. Plus, the cost of utilities in New York is higher than the national average. Seeing that it is improbable that you will be able to outright purchase your home, you will also have to pay the monthly installment of your mortgage. This means your bills will very likely amount to over two thousand dollars every month – which is more than you would be paying for rent. This doesn’t even account for any sudden expenses like plumbing issues, necessary house repairs, or appliances breaking down, all of which are things your landlord would have been in charge of.

No mortgage or loan stress

As we have previously mentioned, it is unlikely you will be able to purchase your home with cash. It means you will have to get a mortgage. And that will be a constant, long-term drain on your resources you have no way of circumventing. Also, the stress of it constantly looming over you can be considerable, especially if you find yourself in a position with no stable job. In addition, you are always one accident away from having to take on extra loans to fix your house or buy replacements for broken appliances! In contrast, the position of a renter is, while not entirely worry-free, at least a lot more relaxed. Your landlord is probably the one who covers the major costs (this being one of the things you should check before renting!), and if you are facing financial trouble, you can always downsize!

Renting offers flexibility

In addition to the lower costs, however, renting also comes with another perk: You can wait for your current lease to expire before moving to a new place! Then you can call the guys from Slattery Moving and Storage. The moving process itself is a breeze. And, if you keep a keen eye on the market, you can always spot good renting deals and snap them up! You can even decide to share an apartment (and the costs!) with a friend. This means that, if you are so inclined, you can always look for better and cheaper apartments, with nothing tying you down to one location. On the other hand, if you own the property you live in, you are more or less stuck with it. You can’t just decide you like living somewhere else better and uproot your life if you are contending with a mortgage!

People loading a moving truck

Moving on short notice may be necessary for young professionals still looking for a stable job.

Other benefits of renting

Having covered the primary reasons why most New Yorkers rent rather than buy their homes, we need to mention the little ones! While they are not as game-changing as what we have covered, these benefits are nonetheless significant enough to warrant consideration.

  • Easier budgeting. You know exactly how much rent costs, and with no worries about potential house-related expenses cropping up, you will have a much easier time drawing up a monthly budget!
  • No liability claims. While they are rare, liability claims can be majorly expensive. All the more if you own a house and are, for example, renting a room to make some money for your mortgage! While there are ways to safeguard against liability claims, it is better not to have to worry about them.
  • Cheaper insurance. Homeowner insurance can be costly, especially if you want to cover everything that can go wrong. On the other hand, renter’s insurance also exists and is much cheaper!
A firefighter fighting a fire

Do not think insurance is a waste of money; you do not want to lose all your possessions and have no way to replace them!

  • No taxes. The dreaded taxes! Not only are they an expense, but they can also be difficult to submit right if you do not know what you are doing. Not having to deal with them (or at least with property-related taxes) is definitely a plus.

Final Word

With our guide on why two-thirds of New Yorkers rent, not buy, coming to an end, we hope that we have helped you make up your mind on whether renting is the right choice for you! While renting does offer many benefits, some prefer the comfort of knowing they own their home. And that’s fine! The most important thing is that you make the decision best for you and your family in the chaos of the 2021 housing market.

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