Is it More Affordable to Rent or Own in Colorado in 2026?

Buying a house is a goal that many have. You work hard, you save your money, and one day you hope to put a down payment on a home that you can call your own. It can be tough in the process of getting there, watching your money go to waste as you pay rent each day. Rent often costs more than a home, and it doesn't go towards any type of investment, whereas a home goes up in value typically and is something you can show off and be proud of owning. When it comes to rent and owning a home, which is more affordable in Colorado in 2026, and how does the state compare to others in the country?

Rent vs Owning a Home in Colorado

If you are struggling to make rent or pay your mortgage in Colorado, or perhaps are looking to move soon, then which is the most affordable option for you? According to a recent study by WalletHub, Colorado is among the most expensive states in the country when it comes to owning a home. Colorado is the 6th most expensive state for buying a house, as according to the study, 32.58 percent of a median monthly house income is needed to afford a home each month. For those renting, you are better off, as Colorado ranks the ninth lowest when it comes to paying rent, where someone needs only 24.59 percent of a median monthly house income to afford rent each month. In some states, owning is a better option, but according to the research, in 2026, you may be better off paying rent and waiting for the housing market to change. 

The Best and Worst States For Renting and Owning a Home

The research above proved that in Colorado, renting is better than owning currently, but if looking to move away from Colorado due to the housing market, what states should you look at, and which ones should you avoid? Hawaii has the most expensive housing market currently, with over 50 percent of a median monthly income needed to afford a home, with California being the second most expensive, and Massachusetts rounding out the top three. The best state to buy in currently is Iowa, with West Virginia being second, and Kansas being third. For renting, you will want to avoid Hawaii, New York, and Maine, and instead rent in states like Oklahoma, Iowa, and Utah. 

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To see the full study, make sure to click the link in the second paragraph above. If you are trying to decide between renting and owning in Colorado, unless you are willing to spend a little more for an investment, it might be best to rent and wait out the housing market.