Buying vs. Renting in 2025

Buying a home with today’s mortgage rates and home prices might seem a bit intimidating for Front Range homebuyers. But if you’re ready and able, now is a smarter move to get started rather than continuing to rent. 

#1 Home Values Historically Increase

One thing is guaranteed in real estate: home prices will always go up. Property values have steadily climbed over the past 60 years (except for the 2008 housing crash).

Average Home Price Nationwide

1963 = $19,600 (in 2024, that sum would be worth $205,905)

2025 = $398,400

Colorado Average Home Price for Single-Family Properties

2019 = $490,904     

2022 = $648,327

2024 = $735,996

“Homeownership is critical for wealth building and financial stability.” – The Urban Institute

#2 Rent Will Keep Rising Over Time

According to ApartmentList.com, rents continue to climb every month this year. Right now, it may only be by a few dollars every month, but it certainly adds up. And you feel the pinch every time you renew your lease or sign a new one. Rent has also consistently grown for the last 60.

Median Monthly Rent Nationwide

1963 = $89/month (in 2024, that would be worth $935)

2024 = $1,373/month

Colorado Median Rent Price

July 2025 = 1,604/month

Read: First Time Homebuyer’s Biggest Regrets

You don’t have control over your rental payment as your landlord determines it. One of the many benefits of homeownership – you set the payment at purchase. Because buying a home with a fixed-rate mortgage stabilizes your housing costs, and when rates drop, you can refinance and reduce your monthly payments.

“If a homebuyer is financially stable, able to manage monthly mortgage costs, and can handle the associated household maintenance expenses, then it makes sense to purchase a home.” – Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR)

Talk with your RE/MAX Alliance agent to explore your options and how first-time homebuyers are purchasing in our current market. They’ll also provide excellent recommendations to lenders specializing in first-time homebuyers and are well-versed in the cost-reducing programs you may qualify for. 

Source: biggerpockets.com, KCM, Denver Metro Assoc. of Realtors®, iProperty Management, Zillow.com, in2013dollars.com