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California vs Colorado:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between California and Colorado. Updated for 2026.

MetricCaliforniaColorado
Median Home Price$785K$520K
Property Tax Rate0.73%0.51%
Avg Closing Costs$9K$7K
Closing Cost %1.2%1.4%
Transfer Tax0.11%0.01%
Homeowners Insurance$2,200/yr$3,200/yr
First-Time Buyer Program
CalHFA Dream For All
Up to 20% shared appreciation loan
CHFA Down Payment Assistance
Up to $25,000 second mortgage
Verdict

Colorado wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $520K and lower overall costs, Colorado offers meaningful savings compared to California. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

California
Home Price$785,000
Down Payment (10%)$78,500
Loan Amount$706,500
Monthly P&I$4,466
Monthly Property Tax$478
Monthly Insurance$183
Monthly PMI$294
Total PITI$5,421/mo
Annual property tax: $5,731
Colorado
Home Price$520,000
Down Payment (10%)$52,000
Loan Amount$468,000
Monthly P&I$2,958
Monthly Property Tax$221
Monthly Insurance$267
Monthly PMI$195
Total PITI$3,641/mo
Annual property tax: $2,652

The monthly payment difference is $1,780/month — that’s $21,360/year or $641K over the life of a 30-year loan. Buying in Colorado is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

California
$232K/yr
minimum household income
Colorado
$156K/yr
minimum household income

To afford the median home in California, you need a household income of approximately $232K/year. In Colorado, you need $156K/year — less by $76K/year. That $76K income gap means Colorado is accessible to a significantly wider range of households.

Which State Is Right for You?

Colorado offers meaningfully lower home prices than California, with median prices running 34% less ($265K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of California may find Colorado far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (California: 0.73%, Colorado: 0.51%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.

Insurance costs favor California at $2,200/year versus $3,200/year in Colorado, a difference of $1,000 annually. While not the largest cost factor, this adds up to over $10K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.

Both states offer down payment assistance for first-time buyers. California's CalHFA Dream For All provides Up to 20% shared appreciation loan, while Colorado's CHFA Down Payment Assistance offers Up to $25,000 second mortgage. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Colorado homes cost $265K less than California on average. That translates to roughly $1,780 less per month in total housing costs if you choose Colorado. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.

Compare Other States

California vs Alaska →California vs Arizona →California vs Hawaii →Colorado vs Alaska →Colorado vs Arizona →Colorado vs Hawaii →

Frequently Asked Questions

Is it cheaper to buy a home in Colorado or California?
Colorado is cheaper overall. The median home costs $520K compared to $785K in California, and the total monthly PITI payment is $3,641 versus $5,421. That works out to $1,780 less per month or $21,360 less per year in Colorado.
How much more are property taxes in California vs Colorado?
California has a property tax rate of 0.73% compared to 0.51% in Colorado. On the median home, that means California homeowners pay approximately $5,731/year in property taxes versus $2,652/year in Colorado — a difference of $3,079/year.
Which state has better first-time buyer programs, California or Colorado?
California offers the CalHFA Dream For All (Up to 20% shared appreciation loan), while Colorado has the CHFA Down Payment Assistance (Up to $25,000 second mortgage). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

Explore Each State

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