-
Compass
200 Columbine St
Denver, CO 80206 -
Sallie Simmons
In 2025, one of the biggest financial questions Denver residents face is clear: is it smarter to keep renting or to buy a home in Denver’s real estate market? With average rents climbing and home prices steady but high, the decision isn’t always simple.
As a local Denver REALTOR®, I help clients weigh this choice every week. Let’s break down the numbers, lifestyle factors, and long-term financial impacts of renting versus buying in Denver right now.
The average rent in Denver now ranges between $2,100 and $2,600 per month, depending on neighborhood and size. Trendy hot spots like RiNo, Highlands, and Cherry Creek often cost more.
Pros of renting in Denver:
Flexibility — perfect if you’re unsure about long-term plans.
No repair or maintenance bills.
Lower upfront costs compared to a home purchase.
Cons of renting in Denver:
Rent increases are almost guaranteed.
No equity or wealth-building.
Limited control over pets, upgrades, or lease renewals.
➡️ Put simply: renting buys you time, but not wealth.
The median Denver home price in 2025 is about $640,000 for detached homes and $420,000 for condos/townhomes(DMAR, 2025).
At today’s 6.63% average 30-year fixed mortgage rate (Freddie Mac), buying a $420K condo with 5% down means a monthly payment around $2,800–$3,000 (including mortgage, taxes, and insurance).
On paper, that’s slightly higher than rent. But here’s what’s different when you buy in Denver:
Part of your payment builds equity and long-term wealth.
You lock in a stable monthly payment instead of facing yearly rent hikes.
Homes in Denver typically appreciate in value, turning your property into an asset.
Here’s a clear comparison of renting and buying in Denver this year:
| Factor | Renting in Denver | Buying in Denver |
|---|---|---|
| Monthly Cost | $2,100–$2,600 (avg 1–2 BR apartment) | ~$2,800–$3,000 (example: $420K condo w/ 5% down @ 6.63%) |
| Upfront Costs | Security deposit + first month’s rent | Down payment (as low as 3%) + closing costs |
| Stability | Lease terms (subject to rent hikes or landlord selling) | Fixed monthly mortgage with 30-year stability |
| Equity | $0 — rent builds landlord’s wealth | Builds personal wealth + appreciation |
| Flexibility | Easy to move neighborhoods | Longer-term commitment (typically 3+ years) |
| Maintenance | Landlord covers repairs | Owner responsible (but you control upgrades) |
| Freedom | Limited (pets, remodel restrictions) | Full freedom (garden, remodel, pets) |
| Tax Benefits | None | Mortgage interest & property tax deductions |
| Long-Term Value | Costs rise over time, no return | Equity grows + strong historic Denver appreciation |
This isn’t just about math — it’s also about how you want to live in Denver:
Renters enjoy flexibility, bouncing between neighborhoods like LoHi, RiNo, or Capitol Hill.
Homeowners value stability in areas like Wash Park, Berkeley, or Central Park, knowing their property value grows with the city.
Homeownership means freedom to remodel, garden, or adopt a dog — and yes, Denver is one of the most dog-friendly cities in the country.
Here’s where buying pulls ahead:
Renting: A $2,500/month apartment for five years = $150,000 spent with $0 return.
Buying: A $420,000 home builds equity, tax benefits, and appreciation. Even if appreciation slows, Denver real estate historically trends upward over 10+ years.
That’s why I tell clients: if you plan to stay in Denver for at least 3 years, buying almost always wins financially.
Renting = Flexibility, but rising costs and no wealth-building.
Buying = Stability, equity, and long-term financial growth.
Break-even timeline = About 3 years of ownership in Denver.
Neighborhood impact: Renters bounce between trendy spots, buyers anchor in long-term communities.
Is it cheaper to rent or buy in Denver in 2025?
Renting is often cheaper month-to-month, but buying builds equity and locks in your payment, making it more cost-effective long term.
What is the average rent in Denver right now?
In 2025, average rent is $2,100–$2,600 for a 1–2 bedroom, higher in RiNo, Highlands, and Cherry Creek.
What is the median home price in Denver?
Detached homes average $640,000, while condos and townhomes are closer to $420,000.
How long should I stay in Denver before buying makes sense?
If you plan to stay at least 3 years, buying usually beats renting financially.
Are there programs to help Denver renters buy?
Yes — Colorado offers down payment assistance, and some programs allow as little as 3% down.
There’s no one-size-fits-all answer, but here’s the truth:
Renting = short-term flexibility, rising costs, no wealth.
Buying = stability, equity, tax benefits, and long-term growth.
In a city like Denver — where people want to live, work, and play — homeownership remains one of the smartest ways to invest in your future.
If you’re wondering what’s right for you, let’s talk. I’ll help you compare the real costs of renting vs buying in Denver so you can make the choice that fits your lifestyle and long-term goals.
📞 Call me, Sallie Simmons, Denver REALTOR®, at 662.588.2420 or visit www.salliesimmons.com to run your personal numbers today.
Compass
200 Columbine St
Denver, CO 80206
Sallie Simmons