The median rent for a 2-3 bedroom home in Closter is about $3,200 per month, while the median home price is around $750,000.

In Bergen County, known for its desirable school districts among the Korean community, both rental and purchase prices significantly exceed the national average. Due to excellent school districts and a stable living environment, there is consistent demand for housing, and recently, as commuting demand from Manhattan has recovered, some areas are experiencing a shortage of listings again.

Calculating the Price-to-Rent Ratio based on these figures gives approximately 19.5, using an annual rent of $38,400 and a median home price of $750,000. Generally, a ratio between 16 and 20 is considered a range where the pros and cons of renting and buying are similar, but the closer the ratio is to 20, the more favorable renting appears from a financial perspective.

When calculating the actual monthly burden, the difference becomes clearer. For a home priced at $750,000 with a 20% down payment of $150,000 and a fixed interest rate of 6.75% over 30 years, the principal and interest would be about $3,900 per month. Adding Bergen County's high property taxes and homeowners insurance, the actual monthly burden rises to about $5,300. Compared to the current median rent of $3,200, this results in a difference of over $2,000 each month.

The opportunity cost of the $150,000 down payment is also significant. Assuming an investment return of 6-7% per year, one could expect an annual return of about $9,000 to $10,500, or roughly $750 to $875 per month. Considering this, renting currently appears to have a relatively lower financial burden.

Compared to nearby areas, Closter has a lower purchase burden than Cresskill or Demarest, but higher than Fort Lee. It forms a mid-range price point among Bergen County's representative school district areas.

Of course, these calculations are purely from a financial perspective. If you plan to live in the area long-term for your children's education and prioritize stable home ownership and asset building, there may be no need to forgo purchasing based solely on monthly costs. Conversely, if there is a possibility of moving, retiring, or downsizing within the next five years, renting may be a more flexible option.

If you are considering buying, it is advisable to also check New Jersey's property tax assistance programs and various deduction options. Depending on eligibility, the actual property tax burden could be reduced, potentially lowering monthly expenses more than expected.

For Korean families, it is crucial to carefully calculate how Closter's high property taxes will impact long-term housing costs. Before obtaining mortgage pre-approval, reviewing recent property tax statements and considering the school district boundaries your children will be assigned to is a more realistic approach to making a final decision.