AABO Buy vs. Rent Calculator
Strategic Housing Advisory
Financial Analysis Tool · Calculator
Buy vs. Rent Analysis
Model the long-term financial impact of owning versus leasing diplomatic housing in New York City.
Over a 30-year hold period, purchasing diplomatic housing in New York can save a mission $45–60 million compared to renting.
Annual rent increases of 3–5% compound significantly over multi-decade timeframes, making ownership increasingly advantageous.
Typical diplomatic housing in Manhattan costs $500,000–$5,000,000 per unit, with monthly carrying costs of $2,000–$8,000.
Calculator FAQ
Calculator Questions
What assumptions does the calculator use?
The calculator models purchase costs (price, common charges, property taxes, transaction fees), rental costs (monthly rent, annual escalation), and investment factors (appreciation rate, hold period). Default values reflect typical Manhattan diplomatic housing, but all inputs are adjustable.
How accurate are the projections?
The calculator provides directional guidance based on the inputs you provide. Actual outcomes depend on market conditions, interest rates, maintenance costs, and other factors. We recommend using the calculator as a starting point and consulting with our team for a comprehensive analysis tailored to your mission's specific situation.
What does a typical diplomatic property cost in New York?
Diplomatic housing in New York typically ranges from $500,000 to $5,000,000+ per unit depending on location, size, and building type. Missions often maintain portfolios of 5–20 units for staff housing. Monthly carrying costs (common charges, taxes) typically run $2,000–$8,000 per unit.
Why is the hold period important in the analysis?
The hold period is one of the most significant variables. Over shorter periods (1–5 years), transaction costs often make renting more economical. Over longer periods (10–30 years), property appreciation and avoidance of compounding rent increases typically make ownership significantly more cost-effective — often saving $45–60 million over 30 years for a multi-unit portfolio.