While it is often thought that buying is cheaper than renting, that is not the case in a few of Denver’s neighborhoods. Month-by-month costs in areas like Englewood, Stapleton, West Highland, and others are actually cheaper for renters than those looking to buy.
Where Is It Cheaper to Rent Instead of Buy?
It’s cheaper to rent instead of buy in a lot of Denver’s higher end neighborhoods, where the average home price has a pretty lofty cost. Take Washington Park for example. The popular neighborhood is 45% more expensive to buy than to rent. Popular Denver neighborhoods, including Platt Park/University/Rosedale, Lowry, Montclair, etc. showed a difference of nearly $500-$600 in monthly costs.
There are even a few zip codes outside of Denver proper where it is cheaper to rent instead of buy. These include Golden (80403 and 80401) where the median monthly mortgage rate was about $500 higher than the median monthly rent payment; Lakewood (80215), which was a little over $300 higher; and Englewood (80111), where the median mortgage rate was also a little over $300 higher than the median rent rate.
Where is it Cheaper to Buy Instead of Rent?
There are still a few zip codes where the opposite is true. According to the Denver Business Journal, a little less than half of the zip codes they analyzed were cheaper to buy than rent. Adams, Arapahoe, and parts of Denver county had lower median mortgage payments compared to median rents. This is great news for investors looking to expand their portfolios!
So whether you’re looking to rent or to buy, it pays to do your research, especially when it comes down to how much you’re going to shell out on a monthly basis. If you’re looking to save money and still want to live in areas like Washington Park, Stapleton, or the Highlands, you may be better off renting instead of buying!