Should You Rent or Buy in Colorado Springs?

Budgeting for Homeownership in Colorado Springs: What to Expect 🏡

Making the jump from renting to homeownership in Colorado Springs is an exciting milestone—but it also comes with new financial responsibilities. While renting might seem simpler upfront, owning a home builds equity and long-term wealth. However, budgeting for homeownership means preparing for costs beyond your monthly mortgage. Here’s what future homeowners in Colorado Springs should plan for!

Key Differences Between Renting and Owning

📌 Renting: You pay a set amount each month, and major maintenance expenses typically fall on the landlord. However, rent payments don’t build equity, and you have no control over rent increases.

📌 Owning: Your monthly mortgage payments go toward owning an appreciating asset. You may also qualify for tax benefits, such as deductions for mortgage interest and property taxes. However, homeownership comes with extra costs that renters don’t typically face.

Homeowner Expenses to Budget For in Colorado Springs

✅ Mortgage Insurance – If your down payment is less than 20%, private mortgage insurance (PMI) may be required, increasing your monthly costs.

✅ Mortgage Points – Some buyers pay points upfront to lower their interest rate. Be sure to calculate the breakeven point to determine if it’s worthwhile.

✅ Property Taxes – In Colorado Springs, property taxes are relatively low compared to other metro areas, averaging around 0.48% of a home’s value. However, these rates can change as home values increase.

✅ Home Insurance – Expect to pay 0.5% to 1% of your home’s insured value annually. If your home is in a wildfire-prone area like Black Forest or near the foothills, your premiums may be higher. It’s wise to get insurance quotes early to avoid surprises.

✅ HOA Fees – If buying in a neighborhood with a homeowners association, factor in monthly fees averaging $50–$125. Some communities, such as Flying Horse or Banning Lewis Ranch, have higher HOA fees due to amenities like pools and trails. In 2024, 41% of homes listed for sale on Realtor.com had some kind of HOA fee.

✅ Utilities – While renters typically only pay for electricity and internet, homeowners must budget for gas, water, sewer, trash, and sometimes solar maintenance. 

✅ Maintenance & Repairs – Experts recommend setting aside .5%-1% of your home’s value for upkeep. A home inspection before purchase can help estimate future repair costs.

Should You Rent or Buy in Colorado Springs?

While renting might seem like the more affordable option in the short term, buying a home allows you to build wealth. Home values in Colorado Springs have steadily appreciated over the past decade, making real estate a solid investment. If you're on the fence, consider these factors:

📉 Renting offers flexibility but doesn’t build equity.
📈 Buying provides stability and long-term financial benefits but comes with extra costs.

At the end of the day, the right choice depends on your financial situation and lifestyle goals. If you’re ready to explore homeownership in Colorado Springs, let’s chat about all your options, so you can make a well-informed decision about what's best for you!