In Denver, its still 45% cheaper to buy rather than rent your home.
Did you know that even with the higher interest rates we have seen the past few months, buying and owning a home in Denver remains cheaper than renting?
With interest rates jumping from the mid 3's to mid 4's this summer, many thought the cost of buying verse renting would even out. But according to Trulia.com's Rent vs. Buy analysis, it is still 45% cheaper to buy a home in Denver than it is to rent, making Denver one of the most affordable cities in the country.
What makes owning more affordable than renting right now? First, the ever increasing rental rates across Denver. Apartments are being built as fast as possible and still can't keep up with the demand. So don't expect rates to decrease anytime soon. Second, interest rates, while higher thanearlier this summer, are still near all time lows. Rates in the 4% range translate to incredibly affordable mortgages. And while rates should stay low for the time being, don't expect them to stay under 5% forever. Rising mortgage rates have narrowed the gap between the cost of buying and the cost of renting. This jump in rates has raised the cost of buying relative to renting. Now is definitely the time to act if you are on the fence about buying.
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