In Colorado Springs and the surrounding Southern Colorado communities—Briargate, Falcon, Monument, Fountain, and the Powers Corridor—many renters wonder whether buying a home is truly within reach. Renting often feels simpler: no maintenance, no property taxes, no mortgage underwriting process. But as your trusted mortgage lender in Colorado Springs, 719 Lending Inc. wants you to understand a critical reality:

👉 Renting may feel easier today, but it is one of the most expensive long-term decisions you can make. Homeownership remains the #1 path to building real, lasting wealth—especially in Colorado Springs.

Let’s break down the real numbers, the local market truth, and why owning often wins financially—even in a changing market. NerdWallet’s Rent vs. Buy calculator reflects the latest national averages and current economic forecasts, providing a helpful tool for understanding the decision between renting or buying. The calculator factors in the effect of inflation on all ongoing costs over time, for both renting and buying. Additionally, the Rent vs. Buy Calculator requires both the annual amount in tax due each year and a forecasted percentage increase to calculate more accurate results.

Why Renting in Colorado Springs Is More Costly Than You Think

When you pay rent, every dollar goes toward your landlord’s mortgage, equity, and future—not yours, and you continue to pay monthly for a property that is rented rather than owned, with your monthly rent being a key ongoing expense. Renting rent refers to the process of paying rent for a residential property, including regular rental fees and other associated costs. Renters typically have lower upfront costs compared to buyers, who must pay a down payment and closing costs. However, renters usually pay a security deposit—typically equal to one month’s rent—plus the first month’s rent before moving in, making the initial moving costs add up to at least a month’s rent in advance. Recurring monthly expenses for renters include rent, utilities, and renter’s insurance. In rapidly growing areas like Colorado Springs, Fountain, and Peyton, this becomes an even bigger long-term disadvantage.

A rent increase is another concern for renters. A rent increase can occur at the end of each lease term, impacting long-term affordability.

When deciding whether to rent or buy, important factors such as location, neighborhood safety, school quality, and proximity to transportation should also be considered, as they can significantly impact your overall satisfaction and financial decision. Renting is recommended for individuals with uncertain income or those needing mobility. Lease terms determine how long a renter can stay and under what conditions, affecting their flexibility. Homeownership, on the other hand, is beneficial for individuals with stable income, good credit score, and sufficient down payment who plan to stay in one location for several years.

Here’s what renters continually lose:

1. Zero Equity Accumulation

No matter how long you rent in Falcon, Briargate, or near Fort Carson, you never build equity or ownership in the property—unlike homeowners, who build equity over time with each mortgage payment.

2. Rising Rent in High-Demand Areas

Colorado Springs rents have increased steadily year-over-year, especially near military bases like Peterson SFB, Fort Carson, Schriever SFB, and the U.S. Air Force Academy. The average national monthly rent came in around $2,000 in February 2025 after accounting for monthly renters insurance and adjusting for inflation. Renters have no protection against:

• annual rent hikes (the calculator assumes that the cost of rent will increase every year)
• lease non-renewals
• sudden relocations

Renters typically do not build equity, but they also avoid the costs associated with home maintenance and repairs.

Renting offers greater mobility and fewer upfront and maintenance costs compared to buying. Renting usually involves predictable monthly costs, primarily consisting of rent and utilities. Renting can be cheaper than buying in many metropolitan areas, especially in high-cost markets. The U.S. housing market has delivered more apartments than we have since the seventies, making staying in the rental market more appealing. Renters typically have lower upfront costs compared to buyers, who must pay a down payment and closing costs.

3. No Tax Benefits

Renters miss out on:

• mortgage interest deductions (mortgage interest is tax deductible, reducing taxable income)
• property tax deductions (property taxes are also tax deductible, lowering your taxable income)

The calculator assumes buyers can save on taxes by itemizing federal tax deductions for both property tax and mortgage interest.

The value of these deductions depends on your tax rate—the higher your tax rate, the greater your potential savings. These tax benefits are supported by the federal government to encourage homeownership.

These benefits often save homeowners thousands annually.

4. No Control Over Your Home

You can’t paint, upgrade, remodel, or personalize your living space without permission—and improvements never benefit you. Renters do not have control over their living space and cannot easily customize or renovate their homes. Homeowners, on the other hand, can personalize their space through renovations, while renters may face restrictions based on lease agreements.

How Homeownership Builds Wealth in Colorado Springs

Owning a home creates a “forced savings account” that grows over time—especially in an appreciating market like El Paso County.

Homeownership typically involves taking out mortgages, with monthly mortgage payments that include principal, interest, property taxes, and homeowner’s insurance or homeowner’s insurance. Rising property taxes and homeowners insurance rates are straining homeowners’ budgets. The loan amount, interest rate, mortgage rate—whether a fixed rate mortgage or adjustable—and the home’s purchase price determine your monthly payment and the total cost of the home purchase, with the home’s purchase price being a key factor in calculating loan amounts and mortgage insurance. Buyers must pay upfront costs and initial costs, such as the down payment, closing costs, and other fees, which are paid by the buyer at closing. If the down payment is less than 20%, private mortgage insurance or mortgage insurance may be required. In addition to the monthly mortgage payment, homeowners face recurring costs and ongoing costs, including maintenance costs, repair costs, HOA fees, utility bills, and homeowner’s insurance or homeowner’s insurance. Homeowners are responsible for paying these recurring expenses over time. Homeownership comes with maintenance responsibilities that renters do not have to manage. The total costs of homeownership also include selling costs, such as agent fees and closing costs, which reduce the net proceeds from selling your primary residence. Capital gains tax and long term capital gains may apply when selling a home, but exemptions exist for a primary residence. The total cost of homeownership should be compared to the total cost of renting, factoring in opportunity cost and the inflation rate. A buy calculator or rent vs. buy calculator can help estimate which option makes more financial sense, and the calculator assumes certain variables such as home price growth, rent increases, and tax deductions. The better deal may vary based on the housing market, purchase price, and month compared. Homeownership often makes more financial sense in the long run, but the affordable option depends on housing affordability and other costs. Selling a home is typically a lengthy and costly process, resulting in less flexibility compared to renting. The opportunity cost of buying a home includes the potential returns from investing the down payment instead of using it for a home purchase. Homeownership can build equity over time, but it often requires a significant upfront investment.

There are two major equity engines:

1. Principal Paydown

Each monthly mortgage payment reduces your loan balance and increases your ownership stake in the home.

2. Home Price Appreciation

Colorado Springs real estate has shown strong long-term growth. Nationally:

• Homeowners gained $28,000 in equity in the 12 months ending Q1
• Appreciation is measured as the increase in value over the home’s purchase price.
• recent reports show homeowners gained an average of $25,000 in equity over the past few years.

Local appreciation often outperforms national averages due to:

• military demand
• job growth
• limited new construction
• strong economic stability

The Wealth Gap: Homeowners vs. Renters

According to the Aspen Institute, the median net worth of a homeowner is roughly $400,000, compared to just $10,000 for renters.

That’s a 40x difference—largely driven by home equity.

Homeowners accumulate more money over time as their equity grows and their property appreciates, while renters miss out on this opportunity to build wealth.

Homeownership also supports:

• investment growth (401k, stocks, savings)
• lower lifetime housing costs
• generational wealth transfer

“But What About Maintenance and Property Taxes?”

Valid question—and the data still makes the answer clear.

Studies from First American show that even when including:

• maintenance costs
• repair costs
• taxes
• insurance
• recurring costs
• ongoing costs

👉 Homeownership still financially outperforms renting in most major markets.

Once equity appreciation is included, buying made more sense in 29–48 of the top 50 U.S. markets, depending on the timeframe studied.

Equity—not short-term affordability—is the long-term advantage.

Rent vs. Buy 2026 Forecast:

Real Stats & Why Buying Wins Long-Term for Most People

Is Now Actually a Good Time to Buy in Colorado Springs?

✔ Affordability improved in for the first time in 4 years

Wages increased faster than housing payments in many markets, resulting in a lower monthly cost for buyers compared to previous years. However, the average monthly mortgage payment for a median-priced home in the United States rose 2.4% year over year to $2,768 as of February 2025.

✔ Mortgage rates are moderating

Even slight reductions in your mortgage rate can significantly lower your monthly payments.

✔ Home prices are stabilizing

Some neighborhoods—like Fountain, Peyton, and Powers Corridor—are seeing price normalization, which means the purchase price of homes in these areas is becoming more predictable for buyers.

✔ VA buyers remain strongly positioned

Colorado Springs has one of the highest concentrations of VA loan eligibility in the country.

⭐ Military families PCSing to Fort Carson, Peterson, Schriever, or USAFA

⭐ First-time buyers using FHA, VA, or down payment assistance

⭐ Renters tired of annual price increases

⭐ Families needing stability in District 20, District 49, District 3

⭐ Investors seeking DSCR or multi-unit opportunities

Your Long-Term Vision Matters Most

If your goal is:

• wealth building,
• stable monthly payments,
• strong financial foundation,
• a customized living space,
• or passing assets to future generations,

👉 Homeownership in Colorado Springs is one of the strongest financial decisions you can make, and for most buyers, it makes more financial sense over the long term compared to renting. To better understand when to wait and when not to wait to buy a house in Colorado Springs, see our detailed guide.

At 719 Lending Inc., we guide first-time buyers, military borrowers, investors, and move-up buyers with transparent, data-driven advice and personalized loan strategies.

Why Buying Is Still the #1 Wealth-Builder in 2025 (Even With Higher Rates)

1. Equity is a forced savings account that renters never get
   CoreLogic: https://www.corelogic.com/intelligence/homeowner-equity-insights-q2-2025/
2. Appreciation + principal paydown = automatic wealth growth
   Average homeowner gained $140,900 in equity over the last 5 years → ICE Mortgage Technology 2025
3. The wealth gap is now 40× – and home equity explains about half of it
   Aspen Institute 2025 report:
   https://www.aspeninstitute.org/wp-content/uploads/2025/02/Homeownership-Wealth-Gap-2025.pdf
4. Fixed-rate mortgage = inflation-proof housing costs
   Renters have no protection against 5–10% annual hikes in many markets → Zillow
5. Tax benefits + ability to tap equity for renovations or investments
   IRS Publication 936 (still valid 2025):
   https://www.irs.gov/publications/p936
6. Generational wealth transfer
   A paid-off home remains the largest asset passed to heirs for most American families.

Bottom Line (Backed by Every Major 2025 Study)

“Time in a home builds wealth. Time renting doesn’t.” — First American, CoreLogic, Federal Reserve, NAR

Ready to See What Buying Looks Like for You?

Whether you’re exploring:

• VA loans in Colorado Springs
• VA loans
• VA loans
• FHA loans
• Conventional financing
• Refinancing your current home
• Down payment assistance
• Investment property loans

We also recommend using a buy calculator to compare the costs and benefits of buying versus renting, so you can make an informed decision.

Our team is here to help.

Schedule a pressure-free mortgage consultation today.

📞 719-888-5253
✉ info@719lending.com
🏢 719 Lending Inc.
104 S Cascade Ave #201
Colorado Springs, CO 80903

🔗 Most Common Mortgage Types
🔗 Apply Online: https://www.719lending.com/apply
🔗 VA Loans: https://www.719lending.com/va-loans
🔗 FHA Loans: https://www.719lending.com/fha-loans
🔗 Mortgage Calculator: https://www.719lending.com/calculate-2/

FAQ – Colorado Springs Renting vs. Buying

1. Is it cheaper to buy or rent in Colorado Springs?

When month compared, renting may seem less expensive, but buying a home offers long-term benefits like building equity and enjoying stable mortgage payments. Average rents are cheaper than average mortgage payments in all 50 of the largest U.S. metros in 2025. Nationally, an average mortgage payment costs 38 percent more per month compared to average rent. Investing the difference in monthly costs between renting and buying in the stock market could yield better returns for some people, but requires financial discipline. The calculator assumes that the profit you would have made in your investments would have been taxed as long-term capital gains.

2. Are VA loans a good option in Colorado Springs?

Absolutely. With a large military population and zero-down benefits, VA loans are one of the best pathways to homeownership.

3. Which neighborhoods are best for first-time buyers?

Falcon, Fountain, Old Colorado City, and parts of the Powers Corridor offer strong value and appreciation potential.

4. How long should I plan to stay to make buying worth it?

Generally, staying 3–5 years is recommended, but buying makes sense if you plan to stay long enough to build equity and offset transaction costs, as equity appreciation can shorten that timeframe.

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