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February 11, 2012
The New York Times has an excellent interactive calculator to determine whether it is better to rent or buy an apartment. Essentially, at New York City prices and taxes, it is far better to rent.
The graphic below is the chart when one plugs in the average rental rates and purchase price rates for a one-bedroom apartment in Manhattan.
(Click image to expand)
However, if one changes the “Annual home price change” to zero, like the current conditions, then it is never better to buy a home than rent.