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Why Rent when You Can Buy? Either Way, You’re Paying a Mortgage

In case you hadn't noticed, rental rates are still a significant burden for many. Recent data indicates that the average monthly rent for a three-bedroom residence in Breckenridge in 2025 is $3,800. This means that, on average, renters are spending approximately 29.1% of their household income on rent. In some markets, this figure jumps to a staggering 50%. Factors such as higher home prices, increased mortgage rates, and limited housing inventory have driven more people to rent, intensifying demand and allowing landlords to maintain elevated prices. Additionally, the flexibility and lower upfront costs associated with renting continue to attract individuals who prioritize mobility and financial liquidity.

As of 2025, the U.S. rental market continues to experience significant challenges, with rental rates remaining high across the nation. Recent data indicates that renting is more affordable than buying in 48 of the 50 largest U.S. metropolitan areas, with a median rent of $1,703 as of January 2025. In some markets, housing costs can consume nearly 75% of the median income, highlighting the financial strain on renters.

The roots of this rental affordability crisis trace back to the mid-2000s housing bubble, which led to a foreclosure crisis and a subsequent surge in demand for rental properties. Over the past decade, the U.S. has seen a substantial increase in renters, with nine million new renters added, marking the largest 10-year gain in history. This surge, combined with a slow pace of new construction—particularly a 25% decline in multi-family housing starts in 2024—has resulted in a tight rental market with limited availability.

In areas like Summit County, finding rentals remains a significant challenge due to high demand and limited supply. First-time homebuyers may find more opportunities in purchasing condos, as both renting and buying involve substantial financial commitments. Ultimately, whether one chooses to rent or buy, they are contributing to a mortgage payment, underscoring the importance of evaluating personal financial situations and market conditions when making housing decisions.

Wait. What?

You read that right. Even if you rent, you’re still paying a mortgage; and it’s your landlord’s. Oh, and you’re helping her build wealth in the process, too.

According to the Entrepreneur Magazine article, “12 Practical Steps to Getting Rich,” owning property is essential if you’re serious about your finances. The article states, “Over time, the money spent on your mortgage is far better invested than money spent paying rent.” In a way, your mortgage acts as a forced savings account. Owning a home allows you to build equity, which you can tap into later in life should a major expense come up. By renting, you’re essentially providing that security to your landlord instead. Bummer, right?

Another reason paying your own mortgage is economically savvy is because you’ll always have the stability and certainty of knowing what your monthly payment will be. For the next 30 years, at least. Rental prices, on the other hand, are only going to continue to climb – and that’s if you can even find a property to rent. New construction can’t keep up with demand, which means more renters are holding on to the places they have.

Basically, there’s never been a better time to quit renting and buy a place of your own. Mortgage rates are still at historic lows (Freddie Mac’s report from last Feb 13, 2025 shows the rate for a 30-year fixed mortgage at 6.87 percent) and there are new homes placed on the market every day. Whether you’re looking to buy your first home or a vacation property to rent during ski season, now is a great time to start paying your own mortgage and stop paying your landlord’s.

When you’re ready to start your home search, give us a call! Let’s meet up for coffee and chat about what you’re looking for. As your Breckenridge real estate agent, I’ll have your back throughout the entire home buying process. I can’t wait to help you find your dream home!

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Experience. Knowledge. Track Record. An obsession with the client experience before, during and long after the transaction.
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