Rent vs buy in Lakewood, CO
In Lakewood, Colorado, typical monthly rent is $1,800, while the typical home value is $550,008.
Renting costs $54k less over 7 years
Using Lakewood's typical figures for rent and home value, plus 20% down and today's mortgage rate. The break-even year is 14.
An opinion, clearly marked, with the math shown. These figures are estimates, not quotes. Change any number, and the stamp changes with it.
- Renting leads by
- $54k after 7 years
- Break-even point
- year 14 when owning catches up
- Actual cost of owning
- $4,592 /mo year 1, against $1,800 rent
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Is it cheaper to rent or buy in Lakewood?
Renting costs $53,999 less over 7 years, including the money returned to you when you sell. For the first 13 years, renting costs less. By year 14, owning catches up.
Renting. Owning. Net cost to date, by year.
Average rent compared with mortgage payment in Lakewood
Rent and mortgage payments don't show every cost, so here are all monthly expenses for year 1 at Lakewood's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,800 | All of it, every month |
| Mortgage payment | $2,999 | $2,643 of it is interest in year 1 |
| Property tax | $215 | 0.47% of the value a year |
| Insurance | $152 | Census median for the city |
| Upkeep | $458 | 1% of the value a year |
| Owning, cash out | $3,824 | $356 of it builds equity |
| Lost return on the down payment | $894 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $229 | 3.5% of the price over 7 years |
| True cost of owning | $4,592 | Cash out minus the equity portion, plus the two amounts above |
Lakewood's verdict in numbers
- Typical home valueZillow ZHVI, September 2026
- $550,008
- Typical rentZillow ZORI, September 2026
- $1,800 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Colorado, 1995 to 2025
- 5.2% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Lakewood
- 0.47% of value
- Home insuranceCensus ACS 2020-2024, Lakewood
- $152 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would change the Lakewood result?
Each line shows where the 7-year verdict for Lakewood changes, while all other inputs stay the same.
Renting costs less when
- Annual home price growth stays below 6.3% (our calculation applies 5.2%, Colorado's long-run rate).
- For the mortgage, the rate remains above 5.49%.
- A similar home rents for under $2,380 a month, while the typical amount here is $1,800.
- Your move happens before year 14.
Buying comes out ahead when
- Home prices rise by more than 6.3% a year.
- Today's mortgage rate is 7.24%; you lock in one below 5.49%.
- For the same home, your rent would exceed $2,380 a month.
- You stay at least 14 years.
Lakewood compared with the other 812 cities
| Measure | Lakewood | Median city |
|---|---|---|
| Typical home value | $550,008 | $422,451 |
| Typical rent | $1,800 /mo | $1,837 /mo |
| Price-to-rent ratio | 25.5 (#131 of 813) | 18.5 |
| Home prices, last 10 years | 5% a year | 6.2% a year |
| Rents, last 5 years | 1.8% a year | 4% a year |
| Property tax | 0.47% | 0.87% |
| Households that rent | 42% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Colorado cities
- Renting comes out ahead by $37k in Denver, CO.
- Renting comes out ahead by $17k in Colorado Springs, CO.
- Renting comes out ahead by $22k in Aurora, CO.
- Renting comes out ahead by $41k in Fort Collins, CO.
- Renting comes out ahead by $26k in Thornton, CO.
- Renting comes out ahead by $47k in Arvada, CO.
- Renting comes out ahead by $34k in Westminster, CO.
- Renting comes out ahead by $33k in Greeley, CO.
- Buying comes out ahead by $5k in Pueblo, CO.
- Renting comes out ahead by $53k in Centennial, CO.
- Renting comes out ahead by $147k in Boulder, CO.
- Renting comes out ahead by $45k in Longmont, CO.