Renting vs Buying in Manhattan: the ultimate pros and cons list

Get Your Free Moving Quote

    If you are moving to Manhattan, renting or buying is the biggest dilemma of those who decide to take this step. Manhattan is known as one of the most expensive places to live, and therefore real estate prices are very high. However, Manhattan offers you many housing options. Buying an apartment in the NYC area can cost you a fortune, but you need to make a careful decision. Buying real estate in some cases can become your big mistake and a big loss of money. So, maybe renting will pay off more for you? To help you, Manhattan Movers NYC decided to reveal all the pros and cons of renting vs buying in Manhattan. We will explain to you everything in the smallest detail and introduce you to the most important things. We want to help you make the right decision. So, let’s see!

    Welcome to Manhattan

    Manhattan is often thought of as a city, but it’s actually one of the most famous areas of NYC. NY consists of 5 major metropolises, among which is Manhattan. In addition to Manhattan, there are also the Bronx, Brooklyn, Queens, and Staten Island. Each of them has dozens of neighborhoods, and each one is special. Manhattan can be said to represent a smaller city that occupies an entire island surrounded by the Hudson River, East River, and Harlem. It’s one of the most visited municipalities in New York and is also the main business center. In addition, moving to Manhattan can be a good decision because Manhattan is one of the best places to live, with high living standards, and good business opportunities, but with high living costs.

    Manhattan buildings under the blue sky
    Manhattan is a very different place that is worth visiting and exploring.

    Manhattan is a very interesting place that offers you a lot. Starting from good entertainment to a comfortable and quality life and excellent health care and education. This place is home to about 1.7 million people. And the largest percentage of residents, 22%, is a young population between 25 and 35 years old. In addition to them, the majority of the population is made up of people between the ages of 35 and 45, 14%, and 65+, 17%. What we can conclude is that Manhattan is an ideal place for all generations. Manhattan is an excellent place for education and there are about 880 public schools here, with a high grade of A+ for the quality of knowledge. But, if you decide to move to Manhattan,  you really need to think about the housing options that this city has to offer.

    Housing trends in Manhattan

    Manhattan is considered the most densely populated part of New York, and it’s also considered that this place is the heart of the city. When we talk about housing options, people often say that Manhattan has a hot real estate market. And why is that, you will see below! According to the latest data available, the median selling price of a house in Manhattan is about $1,200,000. This price remained the same as in 2021. The selling price of a family house is about $7,500,000, while in downtown Manhattan houses are more expensive by a whole $1,000,000. And in the past year, 1.133 houses were sold in Manhattan.

    High-rise building in Manhattan
    The real estate market in Manhattan is diverse and you can find everything from high-rise buildings to family homes.

    When we talk about the housing trend in Manhattan, the most sought-after are:

    • Family houses. For most people, the family home is the “American dream”. But, unfortunately, you will find very few such properties in Manhattan. There are about 4,000 homes for sale in Manhattan.
    • Multi-family houses. Most people choose this type of life. This allows them to live in one half of the home and rent out the other half. Today, many people in Manhattan live this way of life.
    • Apartments. One of the most popular types of housing in Manhattan are apartments. There are over 10,000 apartments for sale on the real estate market in Trento.
    • Co-op. This is an individual unit within a building, and there are currently about 5,000 of them on the market in NY, but unfortunately, they have become less and less popular.

    So, now that you have informed yourself about housing trends in Manhattan, you can move on to the next thing!

    Before you start searching for renting or buying a home in Manhattan determine your needs

    One of the tips of the best movers in Manhattan is “don’t start your search for a Manhattan mover without first determining your needs.” Or simply put, if you don’t know what you’re looking for, don’t start. Therefore, before you start thinking about renting vs buying in Manhattan, think about what you are looking for and what you actually need. What is important to keep in mind is that the prices will be very high and based on that you must have a good budget.

    Girl making list of needs for renting or buying home in Manhattan
    Create a list of your wants and needs that will be your guide to the perfect Manhattan home.

    So, think about how much money you can set aside for rent per month if you plan to rent. Also, if you are planning to buy, think about the amount of money you can give to buy an apartment or a house. Then, based on the number of members of your family and their needs, determine the size of the house as well as the location. And if you live alone, everything will be simpler. In that case, you can even consider living with a roommate. This can relieve your budget because you would pay half of all expenses.

    Renting vs buying in Manhattan

    Rent or buy? This is one of the biggest decisions that await you when you decide to move to Manhattan or elsewhere in the NY area. Given that real estate prices in Manhattan are very high, perhaps you should think about what is more suitable for your budget, your needs, and other possibilities. For example, local movers NYC would advise you to always opt for renting if you plan to live here for a certain period. Because if you buy real estate, its later sale will be at a much lower price than now. Maybe this can represent a financial loss.

    Girl researching options for renting and buying in Manhattan
    Making the final decision about renting vs buying in Manhattan will require a lot of thinking and an investment of time.

    When we talk about renting vs buying in Manhattan, you need to know that both solutions have their pros and cons. In the continuation of our story, we will focus on the pros and cons of renting and buying. But before that, we have to say to you once again that making such a decision requires a lot of thinking, consideration, and a lot of time. It’s also important that you know that buying real estate has its advantages, but that it can be a really big expense. Sometimes rental options are more affordable. But the decision is just yours.

    Pros of renting in Manhattan

    Trend. Currently, in NYC, renting is the most popular option, but also the most affordable. Rent in Manhattan is about 1.700$ monthly. And the largest number of immigrants to Manhattan choose this option.

    A flexible option. Renting offers you the opportunity to change, whether it’s a job change, or you simply want to move. Also, renting allows you to choose what suits you. Renting is ideal for students.

    Rented apartment in Manhattan
    Renting is perhaps a cheaper option, and an apartment is a favorable option because it’s easier to maintain.

    No additional fees, participation, or other costs. Just like you realize there are no hidden costs after checking movers NYC cost, there are no additional costs when renting either. This is one of the advantages because compared to buying in Manhattan, you will not need a down payment of at least 20% for the purchase, as well as other costs of taxes, registration, etc.

    Cheaper and affordable. When we say cheaper and affordable, we mean specifically everything. Starting with maintenance, hygiene, repairs, and renovations, all the way to monthly expenses. An apartment implies a smaller space without a yard, which is simpler and cheaper to maintain. But utility bills are also lower. And then, when you rent, the landlord is responsible for everything.

    Cons of renting in Manhattan

    Possibility of the price increase. Recently, there has been an increase in the prices of absolutely everything in every market. The same is the case with renting. Your landlord can increase the rent at any time. And it may not fit into your budget, and it will create additional problems for you. Maybe you will have to re-plan your budget and change your apartment or your job.

    You do not have the possibility of remodeling or additional construction. If you rent a house, know that you will be limited, just like when you rent an apartment. You must agree on everything with the landlord and respect his decision. Perhaps a better option would be to look for a place where real estate is cheaper such as Chinatown. Chinatown movers revealed to us that real estate prices are significantly lower than in the center of Manhattan, and are around $750,000. Well, maybe this is the best option if you are planning a long-term stay.

    Pros of buying in Manhattan

    Your home is your property. This is one of the biggest benefits that buying a house or apartment brings you. The property is exclusively yours and you have the opportunity to manage it as you wish, renovate or rearrange it. You have no restrictions, and you can sell it, rent it, give it as a gift, or whatever else comes to your mind.

    Couple buying home in Manhattan
    Buying a home brings you many options and benefits. What is needed is to use them wisely.

    You don’t have to move often. It’s normal for all those who rent to change their place of residence often, but in this case, if you decide to buy between renting vs buying in Manhattan, then you will have to decide at the moment when only you want to.

    Your property brings you many options. You can always rent the house or apartment you buy and, based on that, rent an apartment for yourself in another city. It will seem like you are living for free, it will be like rent for rent. For example, buying real estate in the East Village is more affordable than in downtown Manhattan. Also, East Village movers revealed to us that the rental prices are the same around $1,700. Therefore, this is an excellent investment opportunity, but also an opportunity to rent in Manhattan.

    Cons of buying in Manhattan

    You need a big budget. Whether you are buying real estate for cash or on a deferred payment, you will need a lot of money upfront. It starts with participation, which can cost from 20 to 30% of the total price, up to the costs of registration, fees, taxes, etc.

    Lack of flexibility. When you buy a house, it means that you will stay in the same place for a long period. If you aren’t a person who can live in one place your whole life, then this isn’t an option for you. You will not lack flexibility and the possibility of change.

    Higher costs. When you buy real estate, you will expect higher monthly expenses, including utilities, money for maintenance, decoration, etc. Also, know that by buying a house you create an obligation for yourself because a house is a place where you have to constantly invest.

    Renting vs buying – What is your choice?

    The easiest way to make this decision is to take into account all the costs you will have with renting and buying. Based on that, decide what is the most favorable for your budget. Also, calculate the monthly expenses that you would have based on living in a rented apartment and a purchased one. Compare it with your monthly budget and you will see which option is best for you. 

    Also, when it comes to renting vs buying in Manhattan, in addition to researching all housing options in order to make a final decision, you also need to research potential neighborhoods where you can live. It is important for you to know that each neighborhood in Manhattan has different rental costs and real estate prices.

    Let’s say by now you have met Chinatown, where the costs are cheaper compared to the center of Manhattan, and the East Village, where the rental costs are the same as in Manhattan. But we reveal to you another place that may be your choice, Gramercy. Gramercy is a neighborhood in NYC, where real estate prices are around $930,000. Also, Gramercy movers revealed to us that renting is almost twice as expensive as in downtown Manhattan ($2400). Make your choice based on your possibilities! And after that, contact us, our movers are at your disposal. We hope that now you know what to choose, renting vs buying in Manhattan. Good luck!

    Our
    affiliation

    Get Your Free Moving Quote