The other week we were at an open house party talking to a prospective buyer who seemed less excited about buying a condo than shell-shocked at his upcoming rent increase, which was going to be in excess of 15%. At that rate one's $3,000-a-month rent can double to $6,000 a month in five short years, so it's easy to see how renters projecting even very short timelines might succumb to panicky freak-outs. Even smart-money types who sold their homes as prices were peaking a few years ago and rented in the interim are beginning to look back to home ownership, according to Bloomberg. Market research firm Miller Samuel reports that the price gap between buying and leasing an apartment in New York is the narrowest it has been since 2006, due to stable home prices and rents that keep getting squeezed higher. As always, rent-vs.-buy decisions hinge on certain factors like the amount of money you can put down towards the purchase versus financing, and how low an interest rate at which one can borrow.
· Manhattan Homes Best Deals for Buyers Since 2006 [Bloomberg]
· Manhattan Rents Hit Record High as Busy Season Begins [Curbed]
· Miller Time [Curbed]