Renting vs. Buying in 2025: Why This Matters for You

By Giordan Thompson — Denver Realtor, Engineer turned Entrepreneur

Choosing Between Renting and Buying: Consider Your Lifestyle Needs.

If you’ve talked to anyone about real estate lately, you’ve probably heard the same line:

“Renting is cheaper than buying right now.”

And honestly? They’re not wrong, on the surface, monthly rent is cheaper in most major cities. But the part most people don’t understand: Rent may cost less today, but buying builds wealth every single year after.

Let’s break down what’s actually happening in the market right now, and what it means for you, especially if you’re renting, relocating, or trying to buy your first home in Denver.

Why Renting Feels Easier Right Now

Renting looks cheaper because owning comes with extra costs:

• Property taxes

• Insurance (which has gone up a lot nationwide)

• Maintenance

• Higher interest rates

So yeah, when you compare just the monthly payment, renting wins.

But the part most people miss:

Every month you rent, you’re literally paying someone else’s mortgage.

That’s the “quiet truth” behind the numbers.

Investing in home ownership grows your financial future, unlike renting, which lacks equity building.

Why Buying Still Wins Long-Term

KCM shared a graphic that basically punched me in the face:

People who bought homes in almost any year (especially 2010 - 2016) ended up building massive equity over time.

Meanwhile, renters? Your money just… disappears.

Buying a home isn’t just about “owning something.” It’s the #1 way Americans build wealth, period.

Even with higher rates, even with higher insurance, even with the upfront costs, your home starts paying you back over time.

I like how First American put it:

“Once you own a home, equity gains can offset your cost of living.”

Translation: Your house becomes part of your financial team.

The Most Misunderstood Thing in Real Estate Right Now

It's simple:

"Most Americans still think they need 20% down to buy a home."

That’s literally the biggest misconception holding people back.

In reality?

• FHA → 3.5% down

• Conventional → 3%–5% down

• Down payment assistance (Denver has a ton)

• Seller credits

• Builder incentives

You don’t need to save forever. You just need a plan.

Modern townhouses for sale, reflecting the rising real estate opportunities in the city's vibrant market.

The Real Opportunity Right Now (Especially in Denver)

Winter is quietly becoming one of the best moments to buy in years.

Here’s why:

1. Inventory is the highest since 2019.

More homes = more options = more negotiating power.

2. Homes are sitting longer.

MLS data shows days-on-market returning to normal levels. No more “sold in 48 hours” craziness.

3. Sellers are cutting prices again.

We’re basically back to 2018–2019 levels of price reductions.

4. Builders are offering major incentives.

Some builders are offering up to 14% of the sale price in concessions.(That’s… insane.)

5. Mortgage rates are trending down.

Not perfect, but better, and projected to keep easing in 2026.

If you can afford to buy, this winter is a window you don’t want to sleep on.

Denver's winter skyline is beautifully illustrated with snowflakes dancing around the city's iconic architecture and majestic mountains, capturing the essence of a winter opportunity in the Mile High City.

So… Should You Buy Now?

If you’re comfortable with the payment AND you plan to hold the home for 3+ years…

Buying right now can set you up for some serious wins.

If you're renting, relocating, or you’ve just been waiting for the market to “calm down,” this is the calm.

For the first time in years, buyers have leverage again. Sellers are negotiating again. Builders are practically begging for contracts again.

And Denver buyers? You especially have opportunities because demand always snaps back here the moment rates drop.

Final Thought

Homeownership isn’t just a financial move, it’s a future move.

Renting might feel cheaper today, but buying builds the life you want tomorrow.

My job isn’t to pressure you into buying, my job is to give you the real information so you can make the best decision for your future.

If you want help breaking down your options, reach out. I’ll show you exactly what buying looks like in your real numbers, not the internet’s.

You deserve clarity. You deserve a game plan. And you deserve the chance to build wealth on your terms.

—

Giordan

Denver Metro Real Estate Agent

Engineer Turned Entrepreneur

GiorDior