Should I rent, or should I buy?

Jan 14

In Highlands Ranch, the "gap" between renting a 3-bedroom home and owning one is closing fast, and when you factor in equity, the "Rent vs. Buy" argument becomes a landslide.

Rent vs. Buy: The 5-Year Wealth Gap

Location: Highlands Ranch, CO | Property Value: $540,000

The Monthly Comparison

Average Rent (3-Bedroom Home): $2,950/mo
- Based on current 2026 Highlands Ranch market data, rents for 3-bedroom single-family homes average nearly $3,000.
Your Mortgage (P&I at 6.5%): $2,731/mo
- With 20% down, your principal and interest is actually $219 LESS than the average rent.

Feature Renting Owning ($540k Home)

Monthly Payment $2,950 $2,731 (P&I)

Annual Increases Historically 3–5% Fixed for 30 Years

Tax Benefits None Mortgage Interest Deductions

Who builds equity? Your Landlord YOU

The 5-Year Wealth Forecast

If you buy this $540,000 home today, here is what your financial position looks like in 5 years compared to renting.

1. Forced Savings (Principal Paydown)

Every month, a portion of that $2,731 payment goes toward your loan balance. After 60 months (5 years), you will have paid down approximately $32,000 in principal.

In a rental, that $32,000 is simply gone.

2. Market Appreciation (Equity Growth)

Highlands Ranch is a high-demand, land-locked community. Even at a conservative 4% annual appreciation rate:

Year 1 Value: $561,600
Year 3 Value: $607,400
Year 5 Value: $656,990
Total Appreciation Gain: ~$117,000

3. The Bottom Line: The $149,000 Swing

After 5 years of owning, between your principal paydown and your home’s appreciation, you have increased your net worth by roughly $149,000.

The Renter’s Result: If rent stays flat (unlikely), the renter has spent $177,000 in those 5 years with a $0 return.

Bottom line: I rented when I first came to Highlands Ranch in 2011 in order to get an idea of pricing, and what was here. I saw what was happening then and bought within the next year. But maybe you need information on the rental market? What are average rents? I can help as I pay for Altos Research data that tracks this and caculates it based on zip code. Give me a call!

Jason Zisk, Realtor®, Independent Broker, Freedom Team with eXp realty, 720-403-2770, www.highlandsranchrealtor.co (dot CO for COLORADO!)

Jason Zisk

Hello! I enjoy the journey of making genuine connections with people throughout the process of buying and selling. As a Colorado native, I bring 25 year’s experience to my real estate career, as well as a thorough knowledge of the state. I’ve worked as a Managing Broker and co-owned my own brokerage. Hobbies: avid mountain biker and snowboarder, hobby welder, reader, and love spending time with family and friends; definitely the most happy being outdoors! Whether in business or personal life, I believe patience and skillfulness are the keys to success. I feel my role is to serve as a guide and counselor when representing my clients; I feel that having kids, building homes, and confronting life’s challenges have humbled me but also helped me grow. Different markets dictate the need for different strategies and without one you are not well represented. Market monitoring never stops. I will work hard to get Buyer’s the most value and Sellers a maximized return through listening and establishing agreement on what my clients truly need.

https://homebrokerjason.com