Stuck Between Moving and Staying? These 3 Questions Can Help You Decide in Manhattan

If you’re a homeowner in Manhattan with a low mortgage rate, you might be feeling a bit stuck these days. Perhaps you’ve considered making a move—whether that’s finding a larger apartment, relocating to a different neighborhood, or finally settling into a space that feels just right. But then you remember the current interest rates, and suddenly, that idea feels like a distant dream.

This scenario is playing out for many homeowners across the city. Countless residents locked in at historically low rates during the pandemic are now hesitant to give up what seems like a fantastic deal—even if their current living situation no longer meets their needs.

This phenomenon is known as the “lock-in effect,” and it can be quite a strong influence. However, it doesn’t mean you’re out of options. If you’ve been on the fence about whether to stay or go, consider these three questions that can help you gain some clarity and make a decision that feels right for you.

Is your current home still working for your life—or just your loan?

This is probably the most crucial question to ask yourself. When you look past the interest rate and the financial details, is your home still supporting your day-to-day life?

Maybe what once felt spacious now feels cramped, especially if you’ve added a work-from-home setup. Or perhaps your apartment feels too large and empty since the kids have moved out. Your needs may have shifted—maybe you’re caring for aging parents, or you’ve welcomed a new family member. Or perhaps you’ve simply outgrown the space emotionally. What once felt like a dream home now feels like a never-ending to-do list.

It’s easy to brush aside those feelings and focus solely on your current mortgage rate. But when your home no longer aligns with your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but also emotionally and mentally. The right home doesn’t need to be perfect, but it should make your daily life easier, not more complicated.

What would a move really cost you—and what might it make possible?

There’s no denying that interest rates are higher than they were a couple of years ago. But that doesn’t automatically mean that moving isn’t a financially sound decision. What’s essential is how the complete picture looks for you. Many homeowners today are sitting on record levels of equity. As of early 2024, the average mortgage-holding homeowner in the U.S. holds approximately $299,000 in equity, according to ICE’s Mortgage Monitor report. That’s up from $274,000 at the end of 2022—and up even more significantly from $182,000 at the beginning of the pandemic, based on CoreLogic’s Homeowner Equity Insights report.

This equity could serve as your down payment on a new home, potentially reducing the amount you need to borrow, lowering your monthly payments, or even allowing you to avoid private mortgage insurance.

On the flip side, what lifestyle benefits could a move bring you?

Perhaps relocating would bring you closer to family, provide your children with access to better schools, or give you that coveted home office or outdoor space you’ve been dreaming of. It might mean downsizing and freeing up more cash each month. Or it could allow you to settle into a neighborhood that feels more like home.

Moving isn’t just a financial decision; it’s also about improving your quality of life. When you weigh both the potential gains and costs, you might discover that the numbers aren’t as one-sided as they initially seem.

If you stay, are you staying intentionally—or just avoiding a hard choice?

Choosing to stay where you are can be the right decision for some. But it’s important that it’s a conscious choice, not just a default option.

Consider this: If you decide to stay for the next three to five years, what changes or investments would you need to make to ensure your home truly works for you? Would you renovate the kitchen that’s become outdated? Transform the spare room into a functional office? Redesign the outdoor space to make it more enjoyable?

Staying doesn’t have to mean settling for less. Sometimes, coming to terms with your current home involves making a plan for improvement—whether that’s through minor updates, thoughtful renovations, or simply rethinking how you use your space.

However, staying without a plan can lead to years of quiet frustration. Often, those small compromises can add up to something more costly than moving would have been.

Final Thoughts

Feeling “stuck” can be incredibly frustrating. But the good news is, you’re not as trapped as you might think. You’re just facing a decision that requires careful consideration.

You don’t need to have all the answers right away. But by asking the right questions—about your lifestyle, your goals, and your financial situation—you can find the clarity you need. Whether you decide to stay put or make a move, the objective isn’t to time the market perfectly. It’s to make a choice that supports your life and future.

If you’re uncertain about what to do next, let’s chat. We can help you weigh the pros and cons, look at real numbers, and explore your options. There’s no pressure to make a sale; our goal is to provide you with the clarity and confidence you need to move forward in the direction that feels right for you.