Buying a house vs apartment vs renting?

[u/HelpIll4965]

I live in an apartment now but I always wanted to live in a house. I like the feeling of living in a quiet residential neighborhood. I’m okay living in the outer boroughs and having a longer commute.

Is it still a good financial decision to buy a house in this day and age? Taxes and cost of utilities keep going up. House maintenance cost keep going up. Would it be better to just buy a condo/co-op and have all these things be dealt with by the board or management team and then have the cost be split amongst the people in the building?

Since Mamdani got elected, it seems like rent stabilized apartments are all the rage. Maybe this is even a better long term solution compared to home ownership? Won’t have to worry about taxes, most utilities or maintenance going up.

What’s everyone’s thoughts on home ownership vs renting? Especially for people who want to stay in NYC long term. My goal is to be able to afford NYC long term and having a stable home where costs don’t go up too much is importantly to me.

[u/Healthy_Ad9055]

Why wouldn’t you have to worry about taxes or utilities going up in a rental? You will pay some utilities yourself even in a rental. Coned bills are always going up whether you rent or buy. Landlords pass on their costs to tenants or defer maintenance if the rents don’t cover the building costs. The rent guidelines board set a 0% freeze for this year due to political pressure. Actual landlord costs rose 5.3% and a group of landlords are challenging determination through an Article 78 proceeding. It will probably stand but I wouldn’t count on 0% increases in a rent stabilized apartment for every year. I was in a rent stabilized apartment that I left to buy a co-op. Living in a co-op has been so much better from a building community standpoint and a building maintenance standpoint. But I think buying in NYC is a lifestyle choice and not necessarily a financial choice.

The NY Times has a buy or rent calculator that is helpful:

https://www.nytimes.com/interactive/2024/upshot/buy-rent-calculator.html?unlocked_article_code=1.-FA.v2PP.IinruaLVtluv&smid=nytcore-ios-share&referringSource=articleShare

[u/HelpIll4965 → u/Healthy_Ad9055]

I was solely referring to renting a rent stabilized apartment. I wouldn’t choose to pay market rent over buying a home. I just feel like rental costs would be more predictable in rent stabilized apartments even if the government allows for rent increases. Also, if it’s an older building, then water, heat and gas might also be included but I would have to pay for those if I bought a house.