Buying vs. Renting in Metro Denver

Your roadmap to making the biggest financial decision of your life

The Bottom Line Up Front

Home prices in Metro Denver have tripled since 2010, while rents have more than doubled. But here’s the twist: depending on when you made your move, you could be sitting pretty or kicking yourself.

Today’s Reality Check:

• Median home price: $615,000
• Median rent: $2,000-$2,200
• The market? Finally, taking a breather.

For the first time since 2018, neither renting nor buying has a clear advantage. Your personal situation matters more than market timing.

The Great Denver Housing Rollercoaster: Five Wild Rides

2007-2008: The Calm Before the Storm

What happened: Steady, boring growth. Best move: Buy (if you had a crystal ball)

2009-2012: The Fire Sale Years

What happened: Foreclosures everywhere, rock-bottom prices. Best move: Buy (if you could get a loan). Reality: Most people were too scared or couldn’t qualify

2013-2019: The Gold Rush

What happened: Everyone wanted to live in Denver. Prices went bananas. Best move: Buy early, rent later The catch: Nobody saw it coming

2020-2021: Pandemic Madness

What happened: Home prices shot to the moon. Best move: Rent and wait it out. Fun fact: People bought houses sight unseen with cash offers $50K over asking

2022-2025: Reality Check Time

What happened: The market finally cooled off. Best move: Depends on your situation. The vibe: Things are getting normal again

Show Me the Money: Real Stories, Real Numbers

The 2015 Success Story

Sarah bought a $400K house with $40K down

• Monthly payment: $1,800 (including everything)
• Today’s home value: $650K
• Her win: $250K in equity

Meanwhile, her friend Jake rented at $1,200/month

• Today’s rent: $2,000/month
• His advantage: Flexibility to move for better jobs.
• The verdict: Sarah won this round, big time.

The 2021 Cautionary Tale

Mike bought at the peak – $650K house, $65K down

• Monthly payment: $3,200
• Today’s home value: $615K (ouch)
• His situation: Probably owes more than it’s worth.

His buddy Alex kept renting at $2,200/month

• Alex’s advantage: Dodged a bullet.
• The lesson: Sometimes patience pays off.

The Simple Math That Changes Everything

The 25 Rule: Divide home price by annual rent

• Over 25? Rent wins
• Under 15? Buy wins
• 15-25? It’s complicated

Denver today: About 25-30 (right on the edge)

What Nobody Talks About: The Hidden Costs

Buying isn’t just mortgage payments:

• Property taxes: $300+ per month
• Insurance: $150+ per month
• Repairs: That garage door won’t fix itself. A common rule of thumb for saving for home repairs is to set aside 1% to 4% of your home’s value each year.
• Reality check: You may also have HOA fees and other bills that aren’t included in your rent. Understand them all.

Renting isn’t just rent:

• No equity building
• Rent increases every year
• No tax breaks
• But: Someone else fixes the broken water heater at 2 AM

Interest Rates: The Game Changer

The sweet spot years (2010-2015): 3.5-4.5% rates made buying a no-brainer

The recent reality (2022-2024): 6-7% rates made renting attractive

Today: Flat pricing and more inventory have created a more balanced playing field.

Your Personal Playbook

You Should Probably Rent If:

• You might move in the next 3 years.
• You don’t have a 3% down payment (or more) saved unless you’re a VA buyer, then you don’t need a down payment.
• You’re not ready for weekend trips to Home Depot.
• You value flexibility over equity.

You Should Consider Buying If:

• You’re planning to stay 4+ years.
• You have a solid emergency fund (plus a down payment).
• You’re tired of asking permission to paint walls.
• You want to build wealth through real estate.

Age and Stage: What Makes Sense When

In Your 20s and Early 30s: You May Prefer to Rent

• Focus on career growth and exploring the city.
• Exception: You’ve got your dream job and serious savings.

30s and 40s with Kids: You May Prefer to Buy

• Schools matter, stability matters.
• Tax benefits help with higher income.

50s and Beyond: It Depends

• Downsizing? Maybe rent for simplicity.
• Aging in place? Buying might make sense.

Crystal Ball: What’s Coming Next?

Signs pointing to continued renting:

• More apartments being built.
• Economic uncertainty.
• High interest rates might stick around.

Signs pointing toward buying:

• Denver keeps attracting new residents.
• Limited land means long-term price pressure.
• Inflation makes owning attractive.

The truth: Nobody knows for sure!

The Tools You Need

Skip the complex spreadsheets. Use these simple questions:

1. Can you afford 20% more than the mortgage payment? (For taxes, insurance, repairs)
2. Do you have cash on hand for a down payment of 3% or larger? What about money for the other costs you’ll incur when you go to make the purchase?
3. Will you stay put for at least 4 years?
4. Do you have 4 months of expenses saved after your down payment?
5. Are you okay with weekend home improvement projects?

If you answered yes to all four, buying makes sense. If not, keep renting.

The Uncomfortable Truth

Most people make this decision based on emotion, not math. And that’s okay.

Homeownership feels like: Security, accomplishment, and control.

Renting feels like: Freedom, simplicity, flexibility.

Both have real value that spreadsheets can’t capture.

Today’s Bottom Line

Denver’s housing market in 2025 is the most balanced it’s been in years. For the first time since 2018, you won’t obviously regret either choice.

The new rule: Focus less on timing the market and more on what works for your life.

Best advice: Run the numbers, but trust your gut. Whether you rent or buy, make sure you can sleep at night with the monthly payment.

Want to dive deeper into the data? Sign up to receive our market update and get timely information about our market delivered to your inbox each week. Also, check out the Case-Shiller Denver Index, Denver Metro Association of Realtors reports, and current rental listings to see what’s happening now.