Denver Rent vs. Buy: Are You Throwing Money Away?
October 1, 2025
Denver’s housing market has been unpredictable, but one thing is clear: rent isn’t getting cheaper.
With average rents topping $2,000 and starter home prices hovering near $590,000, many Denverites are asking: Should I keep renting, or is it finally time to buy a house in Denver?
At DNVR Lending, the answer comes down to your numbers, your lifestyle, and your long-term goals. Let’s look at how today’s Denver rents stack up against owning a starter home.
What Denver Renters Are Actually Paying
- 1-Bedroom Apartment: ~$1,646/month
- 2-Bedroom Apartment: ~$2,146/month
- Overall Average: ~$1,935–$2,170/month
Renting offers flexibility and lower upfront costs, but you’re also subject to annual increases and you build zero equity. Every rent check is money you’ll never see again.
What It Costs to Buy in Denver Right Now
- Median Starter Home: ~$590,000
- Mortgage Rates: ~6.125% (30-year fixed)
- Property Taxes: ~0.60% (~$3,540/year or ~$295/month)
- Homeowners Insurance: ~$3,000/year (~$250/month)
Buying comes with higher upfront costs and responsibility, but it also provides stability, potential tax advantages, and the ability to turn your monthly payment into an investment in yourself.
Side-by-Side: Monthly Payment Scenarios
Here’s what a $590,000 purchase looks like with different loan programs (estimates only):
Loan Type:
Conventional (20%), Down Payment:$118,000
Loan Amount: $472,000
Est. P&I (6.125%): ~$2,870. Taxes + Insurance: ~$545 Total Est. Monthly: ≈ $3,415
Loan Type:
Conventional (10%)
Down Payment:
$59,000
Loan Amount:
$531,000
Est. P&I (6.125%):
~$3,225
Taxes + Insurance:
~$545
Total Est. Monthly:
≈ $3,770*
Loan Type:
FHA (3.5%)
Down Payment:
$20,650
Loan Amount:
$569,350
Est. P&I (6.125%): ~$3,460
Taxes + Insurance:
~$545
Total Est. Monthly: ≈ $4,005*
Loan Type:
VA Loan (0%)
Down Payment:
$0
Loan Amount:
$590,000
Est. P&I (6.125%):
~$3,585
Taxes + Insurance:
~$545
Total Est. Monthly:
≈ $4,130
*Additional mortgage insurance (PMI/MIP) applies for loans with less than 20% down. Amounts vary by loan type and borrower profile.
Compare that to Denver’s average 2-bedroom rent of ~$2,146/month. Renting looks cheaper in the short term, but buyers gain stability, equity, and the possibility of tax savings.
What $590K Buys in Denver
So, what does a starter home at this price point look like?
- A 2-bedroom, 1-bath bungalow in neighborhoods like Athmar Park or Barnum
- A modern condo with updated finishes near RiNo or Capitol Hill
- A townhome with garage parking in Green Valley Ranch or Montbello
For many Denver first-time homebuyers, these properties represent the chance to stop renting and start building a future.
The Equity Story
That $3,415 monthly payment (20% down) doesn’t just cover your housing. It’s also building wealth. In year one alone, you’d pay down about $9,000 in principal, and that grows every year you own. Rent, on the other hand, is gone forever.
The Big Picture
There isn’t a one-size-fits-all answer. Renting may be the right move if you need flexibility or short-term affordability. Buying may be the smarter choice if you want stability, equity growth, and the opportunity to invest in your future.
At DNVR Lending, we’ll walk you through your options, run the numbers side by side, and help you decide if now is the right time to buy a home in Denver.
What this means for you:
send us your current rent amount, and we’ll create a personalized rent vs. buy comparison to show exactly how owning could work for you.
Disclaimer: Estimates are for illustrative purposes only and not a commitment to lend. Rates, payments, and terms are subject to change based on borrower qualifications, loan program, and market conditions.
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