Renting vs. Owning in Westminster: What You’ll Pay
When comparing the cost of living in an apartment vs house in Westminster, the biggest difference is the monthly rent or mortgage payment. According to Zillow data from May 2023, the average rent for a 2-bedroom apartment in Westminster is $1,895 per month. The average rent for a 3-bedroom house in Westminster is $2,450 per month. Mortgage costs vary based on your down payment and interest rate, but assuming a 20% down payment and 6.5% interest rate, the typical monthly mortgage payment for a median-priced home in Westminster ($615,000 as of May 2023) would be around $3,100.
Of course, these are just averages – actual costs will depend on the specific property, location, and amenities. Newer luxury apartments in desirable areas of Westminster can rent for well over $2,000 for a 2-bedroom, while older houses further from downtown may have lower mortgage payments. It’s important to look at your individual budget and needs when deciding between renting an apartment or buying a house.
Cost Comparison – Apartment vs House
Here’s a side-by-side breakdown of common monthly costs in Westminster:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage | $1,895 | $3,100 |
| Utilities (Gas/Electric) | $120 | $250 |
| Water/Sewer/Trash | Often included | $120 |
| Internet | $65 | $65 |
| Renters/Homeowners Insurance | $15 | $100 |
| Maintenance/Repairs | $0 | $200 |
| HOA Fees | Often included | $250 |
| Total | $2,095 | $4,085 |
Estimates are for mid-range units with typical usage
As the table shows, the total monthly cost to rent a 2-bedroom apartment in Westminster averages $2,095, while the monthly cost of owning a 3-bedroom house is $4,085. Keep in mind, these are rough estimates. Your actual costs will vary based on factors like the age and size of the property, energy usage, and your specific property tax and HOA fees.
Utility and Upkeep Differences
In addition to the base rent or mortgage, apartments and houses have some key differences in monthly utility and maintenance costs:
- Houses typically have higher heating and cooling costs due to larger square footage. The average monthly gas/electric bill is around $250 for a 3-bedroom Westminster house vs. $120 for an apartment.
- Water, sewer, and trash are often included in apartment rent, but homeowners have to pay separately – about $120/month in Westminster.
- Apartments generally have lower renters insurance costs than homeowners insurance – $15/month vs. $100/month on average.
- Homeowners are responsible for all maintenance and repairs, which can add hundreds to the monthly budget. Apartment dwellers don’t have to worry about surprise repair bills.
Of course, utility costs are highly dependent on your individual usage. If you take a lot of baths, blast the A/C, or have high summer water bills from lawn care, you can expect higher monthly utility costs whether you rent or own. In Westminster, many homes use swamp coolers which can reduce A/C bills compared to central air. Newer, energy-efficient apartments may also have lower utility costs.
Lifestyle Tradeoffs
Aside from the raw cost difference, there are some key lifestyle factors to consider when deciding between an apartment or house in Westminster:
- Houses provide more space and privacy, with your own yard and garage. Apartments offer less room but may have attractive shared amenities like a pool or gym.
- Apartments tend to be noisier with shared walls and more foot traffic. Houses provide a quieter environment.
- Many Westminster residents choose apartments for the walkability and low-maintenance living, while families often prefer houses for the extra bedrooms and yard space.
- Apartments usually have reserved parking, but homeowners have private driveways and garages.
- Owning a house provides more freedom in terms of renovations, paint colors, landscaping, etc. Apartment living is more restricted.
There’s no universally right answer – it depends on your budget, family size, commute, and personal preferences. A young professional might prefer a low-maintenance apartment close to work and nightlife, while a family with kids and dogs may prioritize a spacious house with a yard, even with a longer commute.
Which Is Cheaper Long Term in Westminster?
While renting is cheaper on a monthly basis, owning a home can be more cost-effective long term. Let’s compare the 5-year cost of renting a 2-bedroom apartment vs. owning a 3-bedroom house, assuming 5% annual rent increases and 2% annual appreciation for the home:
- Total 5-year cost of renting: $137,950 (average rent of $2,300/month)
- Total 5-year cost of owning: $232,100 (average mortgage/taxes/insurance of $3,870/month)
Owning costs $94,150 more than renting over 5 years. However, $103,000 of the ownership cost goes toward paying down the mortgage principal. Assuming 2% annual appreciation, the home would also gain $63,000 in value. So the net result after 5 years would be:
- Renting: Spent $137,950 on rent
- Owning: Spent $66,100 on interest, taxes, insurance, maintenance ($232,100 – $103,000 principal – $63,000 appreciation)
In this example, owning becomes cheaper than renting after 5 years. But this varies based on home price, interest rates, rent levels, and appreciation in your specific area. Renting is more predictable, while homeownership costs and gains can swing based on the housing market and unexpected repairs. A rent vs. buy calculator can help you compare long-term costs and decide which option is right for you.
FAQs About Housing Costs in Westminster
How much more does a house cost per month?
On average, houses in Westminster cost about $2,000 more per month than apartments when you consider the full cost of ownership – mortgage payments, taxes, insurance, utilities, and maintenance. But a portion of the mortgage payment goes toward building equity.
Do houses come with higher utility bills?
Yes, houses typically have higher monthly utility costs than apartments due to more square footage and outdoor space. The average house in Westminster spends about $250/month on gas and electric, plus $120/month on water/sewer/trash. Apartments average $120/month for gas/electric and often include water/sewer/trash in the rent.
Are apartments cheaper even with pet fees?
Yes, even with pet rent and deposits, apartments in Westminster are usually cheaper than houses when you look at the total monthly cost. The average pet deposit is $200-$500, with pet rent around $25-$50 per month. So even with a pet, renting an apartment is often $500+ cheaper per month than owning a comparable house.
Making the Right Housing Choice in Westminster
As this cost comparison shows, apartments are significantly cheaper than houses on a monthly basis in Westminster. The average rent for a 2-bedroom apartment is $1,895, while the monthly cost of owning a 3-bedroom house is $4,085 when you include the full cost of ownership. Even with pet fees, apartments offer a lower-cost housing option, especially for those who want amenities and low-maintenance living.
However, houses provide more space, privacy and control, which is appealing to many families and pet owners, even with the higher monthly cost. And with each mortgage payment, you’re building equity instead of renting. Our monthly budget examples for Westminster residents can help you figure out how much you can afford and where an apartment or house would fit into your overall spending.
Ultimately, the right choice depends on your unique budget, lifestyle and goals. But if you’re looking for the lowest monthly cost of living, an apartment is the clear winner in Westminster. The convenience and included amenities of apartments make them an especially attractive option for singles, couples and anyone who wants to keep their monthly housing costs low.