Owning vs. Renting in Colorado: The Pros and Cons

Denver, Colorado, is ranked as “the best place to live” in an NBC News report.   Whenever there’s a strong demand for housing, prices tend to rise, making the choice between renting or buying a real concern. Most young people begin their independent lives renting an apartment, and as their careers and income build and they start families, most choose to buy a home.

Buying a Colorado Home

Some of the advantages of buying vs. renting in Colorado

  • Building equity over time.  Colorado’s real estate market is currently one of the most stable in the nation, according to a recent ranking by SmartAsset. Boulder and Fort Collins real estate markets were ranked #1 and #6, respectively*
  • Tax Benefits
  • Creative freedom
  • Sense of community and putting down roots

Costs associated with buying a Colorado home: 

  • Earnest money, down payment, appraisal/inspection fees, property taxes, insurance, closing costs
  • Loan payments
  • Utilities
  • Maintenance and upkeep (generally 1% of your home’s value annually)
  • Furnishing, repairs, renovations

Renting a Colorado Home

Some of the advantages of renting vs. buying in Colorado: 

  • Predictable expenses
  • None of the costly purchase process
  • Flexibility – can pick up and move easily if you don’t like your location or neighbors
  • No risk or exposure in real estate market
  • Easier to qualify with credit

Costs associated with renting a Colorado home:

  • Security deposit
  • First month’s rent
  • Nonrefundable deposits
  • Laundry

Renting vs. Buying is a personal choice based on your own personal situation.  It’s a good idea to calculate the cost of living expenses so you can budget accordingly for your housing. Click here to calculate the salary you will need in Denver, Colorado. A qualified Realtor can help you make this decision.

*Read more about Denver Real Estate.