The Platinum Group, REALTORS®Weldon HobbsColorado Springs | REALTOR®
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Market & Timing

Is it better to rent or buy in Colorado Springs right now?

ByWeldon HobbsTeam Hobbs RealtyPublished Last reviewed

Short answer: It depends mostly on how long you'll stay and how ready you are financially. Renting is a great option when there are a lot of variables in play, such as a possible move, an uncertain job, or plans that aren't settled. If you know you'll be here for a long time, buying usually pays off, because the one-time costs of buying and selling get spread over more years while you build equity. As a rule of thumb, if you don't plan to hold a home for at least five years, it's hard for the numbers to work.

The question underneath: how long will you stay?

Buying a home has costs that renting doesn't: closing costs when you buy, selling costs when you leave, and the ongoing costs of ownership. Those one-time costs are the same whether you stay two years or twenty. The longer you stay, the more years they're spread across, and the more your principal payments and any appreciation can outrun them.

That's why time is the biggest input. If you don't plan on holding a home for at least five years, it's hard for the numbers to work out and weather any kind of storm, such as a flat market, a big repair, or an unexpected move. If you know you'll be here for the long run, buying tends to come out ahead.

The point at which buying overtakes renting is often called the break-even point. Published estimates commonly put it somewhere in the range of three to seven years, depending on price, interest rate, appreciation, and rent growth. It's different for every home and every buyer, so treat any rule of thumb as a starting point.

Compare the full cost, not the rent and the mortgage

A fair comparison puts the whole monthly cost of owning a specific home next to the rent on a comparable home.

The monthly cost of owning includes principal and interest, property taxes, homeowners insurance, HOA dues, any metro district taxes, and a realistic amount for maintenance. See how much house you can realistically afford.

The one-time costs include your down payment, closing costs, and moving in, plus the cost of selling later. See how much cash you need to buy and what it costs to sell.

What owning gives back is equity: the principal you pay down each month, plus any appreciation. With a fixed-rate mortgage, principal and interest stay the same for the life of the loan, while rent typically changes when a lease renews.

What renting gives back is flexibility and the use of the money you didn't spend on a down payment, which you can save or invest.

We don't publish rent figures on this site. Rents change too often, and a number on a web page shouldn't drive a decision this big. Compare real listings for the kind of home you'd rent against the full cost of the homes you'd buy.

Buying builds wealth over time, but it isn't for everybody

If you look at families who have built wealth, real estate is almost always part of their portfolio. The research backs up the pattern: according to the Aspen Institute's analysis of Federal Reserve data, the median homeowner's net worth was nearly $400,000 in 2022, compared with $10,400 for the median renter, and home equity is the largest source of wealth for most people in the U.S. That's a comparison of two groups, not a promise about any one purchase, and homeowners also tend to hold more of other assets. But over time, owning a home you can afford is one of the most common ways households build wealth.

It's not for everybody. Buying works when you're prepared for it.

Are you financially ready to buy?

  • A stable job. You typically need stable income to qualify for the loan, and you want it to keep paying the mortgage.
  • Money set aside. You want savings for the day something happens.
  • Money to maintain the home. You're going to have to invest in your home. It takes money to maintain it.
  • A plan to stay about five years, or a willingness to rent it out if you have to move sooner.

If those are in place, buying is often the better long-term move. If they aren't yet, renting while you prepare is a smart choice, not a failure.

What's specific to Colorado Springs

Military timelines. Many assignments here run about three years, which can land right around the break-even point. Renting first is always a viable option, and for many military families it becomes a short stop before they settle in. Buying for a shorter tour can still work if you're willing to keep the home and rent it out when you leave. See how early to start buying before a PCS, whether to sell or rent your home when you PCS, and living on base or off base.

BAH is built on rental costs. Basic Allowance for Housing is set from local rental market data, not from the costs of owning, such as property taxes and maintenance. It can help with either choice, but it doesn't decide the question for you. Look up your rate on the official DoD BAH Rate Lookup, and see how BAH affects what a military family can afford.

Costs vary a lot from home to home. Property taxes, metro districts, HOA dues, and insurance can make two homes at the same price cost very different amounts each month in Colorado Springs, which changes the comparison with renting. See how property taxes work in El Paso County and what a metro district is.

A simple way to decide

  • If you expect to stay five years or more and pass the readiness check, compare the full monthly cost of the homes you'd buy with comparable rents. Buying often wins over time.
  • If you might move within a few years, renting usually makes more sense, unless you're prepared to keep the home as a rental.
  • If your job, family plans, or finances are uncertain, rent while you build savings and clarity.
  • If you're a junior service member weighing your first purchase, see whether junior enlisted service members should buy.
  • If you've decided to buy, see whether to buy now or wait.

What could change the answer

  • How long you'll stay. A change in orders, job, or family plans changes the math more than anything else.
  • Interest rates and prices. They change the monthly cost of owning.
  • Rent changes. Rising rents make owning comparatively more attractive over time.
  • Ownership costs. Taxes, insurance, HOA dues, and repairs can move the comparison either way.
  • Appreciation. Home values can rise, stay flat, or fall; plan without counting on appreciation.

When to talk with a professional

A lender can show you what the full monthly payment would be on the homes you're considering. A financial planner or financial coach can help you weigh buying against your other goals, and a CPA can explain any tax effects. If you'd like help comparing renting with buying for your situation, let's run through it together.

About the author

Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.

Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon

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