I've recently been debating the same question (in Boulder). If you move out of "downtown" Boulder you can find some rentals for cheaper. I rent a 2BR 1000 sqft for $1300 in north Boulder, and I take the bus or bike to work every day to south Boulder. I imagine you could get a 1BR for about $1000 or less further from the center.
If you are ok with living in a condo, I think buying in Boulder is possible. Otherwise, even after running the
http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/ numbers, my FIRE date is still closer buying a cheaper house outside Boulder. I said "cheaper", not "same price as Boulder but enormous" ;) The reasons I went with a cheaper house are 1) I don't have all my investment money tied up in the house, and so I can access it when I need it for FIRE 2) my mortgage payments are lower, so I can live off less each month (and save more), and 3) lower property taxes. So even though I'm now looking at buying a car and commuting (and crying a little inside at my non-mustachian decision), the overall difference gets me to FIRE faster, which eventually means less commuting in general.
And finally, to better answer your question, when I was running my calculations it was actually preferable or at least break-even to keep renting for several more years (because of the higher savings rate). So no rush, get your finances together and then see what your situation is. The buying experience in CO sucks right now anyway; expect to be outbid by people paying 10% more than you in all cash.