Rent vs Buy in Denver, CO
At a median listing price of $589,000, Denver lands close to the national middle. There is no built-in advantage to renting or buying here, so your own inputs decide it.
With rent averaging $1,453 a month, Denver's prices sit high relative to what renting the same home costs. A high ratio like this tends to keep renting cheaper month to month until a long stay and price growth swing it.
How Denver compares
- Homes in Denver cost 33% more than the national median of $443,255.
- Rent in Denver runs 34% lower than the U.S. median of $2,200/mo.
- Homes in Denver track the Colorado median of $575,000 closely.
What the numbers say
At 0.51% on a $589,000 median home, property tax in Denver works out to roughly $250 a month ($3,004 a year). It is the largest owning cost with no renting equivalent, so factor it in before you compare.
Average rent sits at $1,453 a month ($17,436 a year), the anchor for the renting side. At about 6.3% a year, appreciation in Denver tracks the long-run norm, so the calculator's 3 to 3.5% anchor sits close to recent local experience.
For insurance we use the Colorado average, $2,700 a year, until you can drop in an actual quote for a specific home.
What sets the rent-vs-buy math apart in Denver
Denver's price-to-rent ratio is about 33.8: the $589,000 median price divided by $1,453 a month in rent over a year. That is a high ratio, which means renting is often cheaper month to month and buying leans on appreciation and a long stay to pull ahead. Think of the ratio as a quick first read. It will not settle the decision on its own, but it shows which side starts in front.
A high ratio means the monthly cost of owning in Denver tends to sit above rent at first. Equity build and appreciation slowly turn that around, which makes your expected length of stay the deciding factor.
A handful of Denver particulars matter once you look past the ratio alone. Colorado law prohibits counties and municipalities from enacting rent control on private residential housing units. Source. Professional and business services employment in the Denver metro was 314,700 in May 2026. Source.
Home Purchase
Enter details about the home you're considering buying
Renting
Enter details about your rental alternative
Time Horizon & Market
Detailed mode adds 17 more inputs including advanced assumptions.
Buying is cheaper over 7 years
by $31,485
Buying comes out ahead, though the margin is meaningful only if you stay the full term and your assumptions hold roughly true.
The result is robust across small changes to your inputs.
Total cost of buying
$387,138
Average $4,609 per month over 7 years
Total cost of renting
$207,949
Average $2,476 per month over 7 years
Equity Built
$245,691
What you've paid down on the loan principal over 7 years.
Net Sale Proceeds
$211,339
What you'd walk away with after selling, minus closing costs.
Investment Growth
$65,204
What the down payment could grow to if invested instead of used to buy.
This chart shows total dollars spent on each path, month by month. With your inputs and time horizon, renting stays ahead the entire time.
Frequently Asked Questions
By Barron Hansen, Founder · Last reviewed