There was a family living in a rental in Colorado Springs. Tired of worrying about how much the landlord would raise the rent each year during renewal season, they began to consider buying a home instead. However, when they checked the sale prices, their concerns deepened. Simply comparing the money spent on rent to mortgage payments did not provide a clear answer.

In such cases, the price-to-rent ratio is a useful concept. Simply put, it shows how many times the purchase price of a home is compared to the annual rent. A lower number (15 or below) indicates that buying is more favorable, while a number above 20 is often interpreted as renting being relatively advantageous.

Looking at the actual figures for Colorado Springs, the average home value according to Zillow is $450,850, which has decreased by 2.0% over the past year (as of May 31, 2026). In contrast, rent, according to the August 2026 report from Apartment List, has a median rent of $1,347, which is down 2.5% from a year ago. Calculating the price-to-rent ratio with these two numbers gives us 27.9. This indicates that rent is relatively low compared to home prices, suggesting that, purely from a calculation standpoint, renting may be a bit more favorable.

In the recent 1-2 year trend, Colorado Springs has seen a gradual stabilization after the sharp rise in home prices during the pandemic. Rent also rose sharply at one point but has slightly decreased over the past year. During periods when both indicators are adjusting, there tends to be more room for negotiation for both buyers and renters.

However, it is difficult to draw conclusions based on this one number alone. We need to compare the $1,347 spent on rent each month with the mortgage payment if they were to buy a home now. Given the current interest rates, the monthly payment, including interest, property taxes, and insurance, often exceeds the rent. Therefore, at first glance, renting appears to be the lighter option.

If we assume a 20% down payment and finance the rest with a 30-year fixed-rate mortgage, a home priced in the $450,000 range is likely to have a monthly payment that exceeds the rent of $1,347 just for the principal. Adding property taxes and insurance will widen the gap even further. Increasing the down payment to over 30% can significantly reduce the monthly payment burden, making the size of the down payment a key variable in narrowing the gap between renting and buying.

Additionally, it is important to consider whether you have the means to make a down payment and how many more years you plan to stay in the area. If you buy a home and move again within three years, considering closing costs and selling costs, renting may actually be the better choice. Conversely, if you plan to stay for more than five years and have a down payment ready, it may be worth considering buying, as the money spent each month contributes to your assets.

It can also be helpful to evaluate how much rent has increased each time you renew your lease over the past 2-3 years. If there is a consistent pattern of increases at each renewal, it is worth considering that in a few years, the mortgage payment level could approach the current rent.

Colorado Springs is also a popular area for Korean families looking for good school districts. While you can refer to ratings from GreatSchools or Niche, keep in mind that school district boundaries change frequently, so be sure to check the assigned school for the specific address before purchasing. If you are moving from another state, it is also good to be aware that property tax and insurance systems may differ from your previous state.

Ultimately, the decision between renting and buying is not determined by just one number. You need to consider the monthly expenses, down payment capacity, and living plans together. This article is not investment or legal advice, and it is advisable to consult with a professional before making any actual contracts.