Boulder, Colorado, is a stunning city known for its breathtaking mountains, vibrant culture, and thriving tech scene. And it has been named the number one city in the state for Gen Z job opportunities. More and more people are moving in, for study and for work. Given the high quality of life and work opportunities, it’s no wonder that the real estate market is highly competitive. And this means high prices.

So, what should you do? Rent or buy?

Rent vs. Buy in Boulder

Let’s dive into the current housing market and explore the pros and cons of each option to help you make an informed decision.

The Current State of Boulder’s Housing Market

Boulder’s housing market is quite unique. According to Redfin, the median sale price for a home in Boulder in 2024 was around $935,000, which was significantly higher than the national median of $407,500. This increase reflected a 16.9% rise from the previous year.

However, In January 2025, Boulder home prices were down 9.38% compared to last year, selling for a median price of $845K. Furthermore, on average, homes in Boulder sell after 110 days on the market compared to 88 days last year.

If these prices seem excessive, just take into account the fact that the median price of homes in April of 2022 was $1,237,500.

So, the prices are stabilizing and have a downward trend. Maybe you should wait a bit more with the purchase. However, you should take into account the cyclical nature of the real estate market. The price graph rarely goes straight down or up – it is more of a rollercoaster track. And for home buyers, it sure feels that way. You should watch the market carefully to catch the price at a low point before it starts to climb up.

The Case for Renting in Boulder

Renting has its perks, especially in a market like Boulder’s. One of the most significant advantages is flexibility. Renting allows you to move more easily if your job or lifestyle changes, which is particularly appealing for young professionals or those who enjoy exploring new opportunities.

Also, you are spared of expenses that go with homeownership. Beyond the mortgage payment, homeowners face a range of expenses that significantly impact their budgets. These include property taxes, homeowners insurance, and maintenance. The last one can be quite a burden – it is often estimated at 1% of the property’s value annually. Of course, it’s higher for older homes.

Renting typically requires only a security deposit and the first month’s rent, making it more accessible than buying a home, which demands a substantial down payment and various closing costs.

Another benefit of renting is predictable monthly expenses. Rent usually remains stable for the duration of your lease, making it easier to budget compared to homeownership, where costs can fluctuate due to property taxes and maintenance needs.

Additionally, when you rent, your landlord handles repairs and maintenance – no need to worry about leaky roofs or broken appliances. Given the current volatility in the housing market, renting allows you to avoid potential pitfalls associated with buying at a high price point.

The average rent in Boulder is around $2,607 per month. While this may seem steep compared to other areas, it might still be more manageable than committing to a mortgage in such an expensive market.

The Case for Buying in Boulder

Despite the high prices, there are compelling reasons to consider buying a home in Boulder. For one, real estate often appreciates over time. While there may be fluctuations in the market, owning property in a desirable location like Boulder can be a solid investment. As homeowners pay down their mortgages and their homes’ values increase, they build equity – an asset that can benefit them financially down the road. Thanks to mortgage brokerage companies like Mr. Rate, there are plenty of affordable and flexible financing solutions.

Homeownership also comes with tax benefits that can lead to significant savings. Homeowners can take advantage of deductions on mortgage interest and property taxes. Additionally, owning your home means you can make it truly yours – renovate rooms, paint walls, and create your dream space without needing landlord approval.

Lifestyle Considerations

Beyond finances, it’s important to think about how each option fits into your lifestyle. If you plan to stay in Boulder for several years or more, buying might make sense; however, if you’re unsure about your future plans or expect to move soon due to job changes or personal reasons, renting could be better suited for you.

Some people crave the stability and community that comes with homeownership; others prefer the freedom of renting without long-term commitments. Homeownership requires time spent on maintenance and repairs; if you’d rather spend your weekends hiking or exploring local events instead of fixing leaky faucets or mowing lawns, renting might be more appealing.

Conclusion

Deciding whether to rent or buy is not an easy choice – it involves weighing financial implications against personal lifestyle preferences. Yes, buying offers long-term investment potential and stability, but renting provides flexibility and lower upfront costs. Which one you choose depends on your preferences and circumstances.

John Mali Director of Media Relations

Director of Media Relations at AboutBoulder.com

[email protected]