New York City Guidelines Board
NYC Rent Guideline Board sets a cap on how much a landlord may increase your rent annually. In June of 2022, the board set a 3.25% increase for one-year lease agreements and a 5% increase for a two-year lease agreement. This rental increase applies to all leases signed between October 2022 to September 2023. This means that if your current rent were $1,000.00 according to the guidelines, your lease renewal could not exceed $1,032.50 for a one-year lease renewal or $1,050.00 for a two-year lease renewal.
New York City Rental Rates
Rental prices begin to increase in early May and reach their apex in the summer months, peaking in July. They begin to decrease again come October, reaching their low in February. An average rental rate of $5,000 was recorded in July 2022.
Benefits Chart Comparison
Cost of Renting
Five Percent Rule
What is the 5 percent rule in rent versus buy?
To get your breakeven point, multiply the home’s value by 5%, then divide that number by 12. If the monthly rent on a comparable home is below the breakeven point, it makes financial sense to rent. Buying makes financial sense if the monthly rent is higher than the breakeven point.
Key Take Aways.
- If you’re trying to decide whether to rent or buy a home, consider the advantages homeownership offers.
- Buying a home can help you escape the cycle of rising rents; it’s a powerful wealth-building tool, and it’s typically considered a good hedge against inflation.
- If you’re ready to take advantage of the benefits of homeownership, let’s connect to explore your options.
Other educational articles about the market and your home search are under Karen’s Blog.