There was an investor contemplating whether to buy a condo in Denver with extra cash to rent out, or to keep that money and continue renting. It was hard to make a decision when looking at the sale price and rent separately, so they decided to calculate both figures side by side.

According to Zillow, the average home value in Denver is $533,060, which has decreased by 2.7% over the past year. Rent, based on Zumper's data from August 2026, averages $1,909, down 3% from a year ago. Dividing these two figures gives a price-to-rent ratio of 23.3. If this term is unfamiliar, think of it as a number that shows how many times the cost of buying a home is compared to a year's worth of rent. A ratio around the mid-20s suggests a balance between buying and renting.

Looking at the trends from the past year or two, Denver was once one of the hottest markets in the country, but recently, with an increase in new supply, both home prices and rents have started to adjust. This trend signals more room for negotiation for buyers and a need for rental investors to recalculate their returns.

This makes renting appear more favorable, but the simultaneous decline in home prices and rents is also a signal worth noting for buyers. When inventory increases and prices adjust, there is more room for negotiation. However, for investors aiming for rental income, it's important to factor in that rents have decreased compared to a year ago. If home prices drop but rental income also decreases, the return on investment may not meet expectations. If approaching this as a rental investment, one must consider the actual yield, taking into account vacancy periods and management costs, and it cannot be assumed that it's always a good time to buy just because home prices are adjusting.

If the purpose is to live in the home, the calculations differ slightly. The starting point is comparing whether to pay $1,909 in rent each month or to make a down payment and pay that amount in mortgage payments. If one can gather enough for a down payment to reduce the loan principal, the monthly payment could be similar to or even lower than the rent. Conversely, if the loan amount is large, adding interest, property taxes, and insurance can lead to a monthly burden that exceeds rent. Assuming a 20% down payment and a 30-year fixed-rate mortgage on a home priced around $530,000, the monthly payment based on the loan principal alone is likely to exceed the rent of $1,909. Additionally, considering Colorado's unique property tax reassessment method, the burden may change slightly each year.

If the intended stay is short or there's a possibility of moving in the future, the advantages of buying diminish due to closing costs and agent fees. On the other hand, if planning to stay in one place for over five years, the money spent each month tends to accumulate as an asset, making buying more advantageous.

Denver is also a place where many Korean families prefer certain areas based on school districts. While school ratings can be checked on GreatSchools or Niche, school boundaries change frequently, so it's advisable to verify the assigned school for a specific address before purchasing. Particularly in areas with high school ratings like Cherry Creek or Highlands Ranch, both home prices and rents tend to be higher than the Denver average, so it's important to weigh school districts and commuting distances within your budget. If coming from another state, it's also good to keep in mind that property taxes and insurance systems may differ from your previous residence.

Ultimately, whether for investment or personal residence, the answer depends on individual financial situations and living plans. It's also worth considering options like locking in a rental contract for several years or saving a bit more for a down payment before delaying the purchase. This article is not investment or legal advice, and it's recommended to consult with a professional before making any actual contracts.