Rent or Buy in Denver?

Denver sits at an interesting inflection point in 2026. After years of being one of the hottest housing markets in the country — driven by the tech sector, outdoor lifestyle appeal, and in-migration from both coasts — the market has cooled considerably. Median home prices have pulled back from their 2022 peak of around $600,000 to roughly $520,000–$550,000, and days on market have extended. For buyers who sat out the frenzy, this is the window they were waiting for. Whether it's the right time to act depends on your specific situation.

Colorado's property tax structure has been in flux. The state passed significant property tax relief legislation in 2023 and 2024 in response to the assessment shock that followed the appreciation boom, and effective rates in Denver County now run around 0.5–0.6% of assessed value — relatively low for a major metro. On a $540,000 home, that's roughly $2,700–$3,240 per year, or $225–$270 per month. This is meaningfully lower than comparable metros like Austin or Chicago, and it shortens Denver's break-even timeline.

The rental market remains tight. Denver's vacancy rate is low by national standards, and a two-bedroom in Capitol Hill, LoHi, or the Highlands runs $2,000–$2,600 per month. At those rent levels, the monthly cost of renting and owning a comparable property are relatively close, which is the market condition that most favors buying for long-term residents.

Denver's appreciation has historically tracked 4–6% annually over the long run, supported by strong in-migration and a constrained supply environment. For buyers planning to stay five or more years, the combination of moderate property taxes, a recovering market, and durable demand fundamentals makes a reasonable case. The calculator below uses current Denver median prices and Colorado-specific tax assumptions.