𝐖𝐡𝐲 𝐁𝐮𝐲𝐢𝐧𝐠 𝐚𝐧 𝐀𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭 𝐒𝐭𝐢𝐥𝐥 𝐏𝐚𝐲𝐬 𝐎𝐟𝐟 𝐢𝐧 𝐭𝐡𝐞 𝐋𝐨𝐧𝐠 𝐑𝐮𝐧

In New York, renting often feels like the easier and more flexible option. No co-op board packages, no major repairs, no dealing with property taxes or fluctuating mortgage rates — you sign the lease, pay the rent, and go about your day.

But there’s one major drawback: renting doesn’t build wealth. And in a city where every dollar counts, that makes a huge difference over time. Apartment owners, on the other hand, grow their net worth simply by owning their place in the market.

If you’ve been wondering whether buying is still worth it in NYC, the long-term math says yes — absolutely.

Renting vs. Owning: Why the Long-Term Numbers Don’t Lie

When you rent an apartment, your monthly payment disappears into your landlord’s pocket. It doesn’t build anything for your future.

When you own an apartment, part of every monthly payment is essentially paying you back through equity — the wealth you build as your apartment appreciates and your mortgage balance shrinks.

So even if renting feels more affordable right now, it comes at a long-term cost: you’re not building any financial foundation.

First American recently analyzed the long-term financial impact of renting versus owning across multiple time periods — including 2006, 2015, 2019, and 2022. They compared:

• Mortgage payments

• Taxes

• Insurance

• Repairs and maintenance

• Equity gained through appreciation + paying down the loan

Across every single time frame, the same pattern appeared:

Renters consistently lost money. Apartment owners consistently gained it.

The solid lines in the analysis represent the wealth owners gained over time. The dashed lines show how renters continued to spend — without building any long-term financial benefit.

No matter the year, no matter the market conditions, owning built wealth. Renting didn’t.

Time in an Apartment Builds Wealth — Time Renting Doesn’t

NYC buyers know buying may not always feel “cheaper” upfront. But over time, ownership wins — again and again.

And here’s the important part:
Even after factoring in taxes, repairs, insurance, and all the responsibilities that come with owning, apartment owners still come out ahead financially.

Meanwhile, renters continue to pay more over time — but never gain anything from those payments.

Does buying always beat renting in the short-term? Not always.
But in New York, where appreciation and demand stay strong, the long-term financial gap grows wider every year.

Affordability Is Slowly Improving — Even in NYC

If buying feels out of reach right now, you’re not alone. The last few years have been tough for buyers all over the country — and especially here in New York.

But things are finally starting to shift:

• Mortgage rates have come down from their peak

• Prices in some areas have softened

• Income growth has helped balance affordability

• According to Zillow, typical monthly payments have eased slightly since last year

Buying isn’t suddenly “easy,” especially in NYC — but it is becoming more attainable than it was just months ago. And history shows that long-term, it pays off.

Bottom Line

Renting may feel simpler today, but owning an apartment is what builds true financial stability over time. And with affordability starting to move in the right direction, stepping into New York homeownership may be more possible than you think.