Looking for a new home with the stunning Rocky Mountains as your backdrop? Denver continues to draw in folks with its booming job market and amazing outdoor activities. But if you’re thinking about calling Denver home or already live here and planning your next move, you might be wondering whether buying or renting makes more sense in 2025. With rent costs going up and down, home prices shifting, and mortgage rates constantly changing, it’s not an easy choice to make. 

Keep reading as we share key factors shaping the housing scene in Denver , so you can make the best decision for your situation without the headache of endless research.

Denver Rental Trends to Watch in 2025

A Look at Current Rent Prices and Trends:

Let’s break down Denver’s rental market as of spring 2025. Here’s what average rent prices look like right now:

• Studio: $1,697 (↓ 7% from last year)
• 1-Bedroom: $1,946 (↓ 10%)
• 2-Bedroom: $2,589 (↓ 6%)

Overall, Denver rents are trending down, giving renters some much-needed relief.

Zillow reports an average rent of $1,900 across all property types, while Apartments.com shows $1,656—both showing year-over-year drops. Despite small differences in the numbers, the message is the same: rents are more affordable than they were last year.

What’s Driving Denver’s Rental Costs? (Supply, Demand, Economy):

Why Are Denver Rents Dropping?

Too many apartments, not enough renters. Denver added about 41,000 new units in the last three years, which more than doubled rental availability. That pushed vacancy rates to a record 10.9% by the end of 2024—even higher downtown.

At the same time, Denver’s population is still growing, and the job market (especially in tech and healthcare) is strong, so demand hasn’t gone away.

But here’s the twist: new construction is slowing down fast. In 2024, apartment starts dropped nearly 50%, the lowest in 10 years. If that trend holds, fewer units could hit the market soon.

Also, rents typically dip during winter when demand is lower—another factor behind recent price drops.

Will Denver Rents Stay Low in 2025?

Right now, renters are seeing better deals, thanks to a high number of vacant units and a seasonal slowdown. But how long will it last?

Here’s what the experts are saying:

• NorthPeak predicts a 3% rent increase in 2025, which aligns with pre-pandemic trends.
• Zumper expects modest growth, though high vacancy rates may slow it down.
• CoStar already saw a rent increase in January 2025.
• MMG Real Estate Advisors forecasts a 0.8% rise for the year.

Bottom line: Renters are in a good spot now, but prices are likely to inch up as fewer new units get built. That viral claim about a 31% spike in rents? Not true. Experts agree—small, steady increases are far more realistic.

Should You Buy a Home in Denver in 2025? Here’s What to Know

What Are Home Prices Like Right Now in Denver?

As of April 2025, Denver’s rental market is experiencing a downward trend in prices, offering potential renters more affordable options. Here’s a breakdown of the current average rents:​

• Studio: $1,454/month​
• 1-Bedroom: $1,656/month​
• 2-Bedroom: $2,174/month​
• 3-Bedroom: $2,833/month​

These figures represent a 4.8% decrease in average rent over the past year, translating to approximately $78 less per month for renters. ​

The decline in rent prices is attributed to an increase in apartment supply, with over 20,000 new units added in 2024. This surge in availability has led to higher vacancy rates, providing renters with more choices and negotiating power.​

However, experts caution that this trend may not last. With new construction slowing down and demand expected to pick up, rent prices could start to rise again later in the year. NorthPeak anticipates a 3% rent increase in 2025, aligning with pre-pandemic growth rates. ​

Is There More Inventory for Buyers in 2025?

If you’re looking to buy a home in Denver this year, you’re in luck—there are a lot more options on the market. In February 2025, REcolorado reported a 14% increase in new listings compared to both the month before and the same time last year. Porchlight Group saw an even bigger jump, with active listings rising nearly 48% year over year. By the end of March, Newsweek noted a 67% surge in available homes, and Zillow backed this up with a 43.7% increase in for-sale inventory.

Homes are also staying on the market longer. The median number of days a home sits before selling is now 33 (REcolorado), with DMAR reporting an average of 38 days in 2024. In March 2025, Rocket Homes showed an average of 47 days. All of this points to a shift toward a more balanced market, with around 3.4 months of supply available. That gives buyers more time to think, more homes to compare, and more power to negotiate. Many sellers are now offering concessions, like helping with closing costs or repairs, which is another sign that buyers are gaining the upper hand.

What Are Experts Saying About Denver Home Prices?

Most experts expect little to no change in Denver home prices for 2025. DMAR predicts a 0–3% increase, Zillow sees small ups and downs, and others like the Storck Team and RealWealth expect flat growth.

Some analysts think prices might dip. Colorado Hard Money and Newsweek suggest a possible 5–10% drop due to high mortgage rates and more homes on the market.

Bottom line? The wild price jumps are gone. The market is cooling and more balanced, which could mean good opportunities for buyers ready to act.

How Rates Are Affecting Affordability in Denver

Higher mortgage rates mean higher monthly payments, making it harder for buyers to afford homes, especially in a high-cost market like Denver. Many would-be buyers are holding off, hoping for better rates.

Even if rates stay in the mid-6% range, big improvements in affordability aren’t likely. Some buyers use the strategy of “marry the house, date the rate” (buy now, refinance later), but there’s no guarantee rates will drop enough to help.

Right now, buying often costs more than renting, and many homeowners with low pre-pandemic rates are staying put, which keeps inventory tight.

The True Cost of Homeownership in Denver

Owning a home in Denver means more than just paying the mortgage—property taxes are a major expense.

Here’s what to know for 2025:

• Property assessments are based on home sales from July 2022 to June 2024.
• The 2025 assessment rate is projected at 6.25% for local government and 7.05% for schools.
• Tax relief passed in 2024 helped a bit, but many of those discounts are expiring this year.

What that means for you:

• Expect your tax bill to increase in 2025.
• Average savings from last year’s relief? Around $233–$415 in Denver County.
• Some homes could see a 32% to 54% property tax increase between 2024 and 2026 (for a $500K home).
• Even if your home’s value doesn’t rise, your taxes still can, especially once temporary exemptions end.

While there are limits on how much local governments can increase revenue, property taxes are clearly trending up. Be sure to factor this into your budget.

Homeowners Insurance Costs in the Mile High City:

Homeowners insurance is another expense that’s been climbing steadily in Denver. In 2024, the average annual cost in Colorado ranged from about $3,320 to $3,820, with Denver likely falling within or above this range. 

Colorado has seen homeowners insurance premiums jump by an average of 21% in just the past year 50, and nearly 60% over the last five years.

Why the big increases? 

Insurance costs are rising due to inflation, higher building costs, and more natural disasters—especially wildfires and hail. Colorado now has the 4th-highest premiums in the U.S. In 2025, rates are expected to climb another 11%, and more homeowners may face non-renewals as insurers reduce risk.

Should You Rent or Buy in Denver?

What to Consider Before Buying

Thinking of buying a home in Denver? Ask yourself:

• Do I have enough saved for a down payment?
• Is my credit score solid?
• Can I comfortably cover a mortgage, taxes, insurance, and repairs?

Also, consider your job stability and long-term goals. Don’t forget to explore first-time buyer programs like CHFA or metroDPA, which can help with down payments and closing costs.

When Renting Might Be Better

If you’re not planning to stay long-term or your finances need work, renting could be the smarter choice. Right now, renting is often cheaper than buying in Denver. It also comes with lower upfront costs and more flexibility, especially helpful in a shifting market.

Tips for First-Time Buyers

• Get pre-approved to know your budget.
• Check out affordable neighborhoods like Westwood, Barnum, or Green Valley Ranch.
• Work with an agent who understands first-time buyers and the local market.
• Budget for everything: mortgage, taxes, insurance, HOA, maintenance, and utilities.
• Look into low-down-payment loans (like FHA) and assistance programs to stretch your buying power.

Now, let’s learn the importance of inflation and interest rate.

Inflation vs. Interest Rates: What You Need to Know

Should You Rent or Buy in Denver in 2025?

Deciding whether to rent or buy this year comes down to your lifestyle, financial readiness, and long-term plans.

Right now, renting is more affordable. Prices are down, upfront costs are lower, and it offers flexibility, especially if you’re not sure how long you’ll stay in Denver or if your budget needs time to grow.

Buying, on the other hand, can offer stability and long-term value. But it also comes with higher monthly payments, taxes, insurance, and upkeep costs that add up quickly in a city like Denver.

If you’re confident in your finances and plan to stay long-term, buying may make sense. If not, renting can give you room to breathe while the market continues to shift.

Need help deciding? Book a free consultation or start your application here.