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Colorado vs Hawaii:
Mortgage & Housing Costs

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

MetricColoradoHawaii
Median Home Price$520K$830K
Property Tax Rate0.51%0.28%
Avg Closing Costs$7K$12K
Closing Cost %1.4%1.5%
Transfer Tax0.01%0.2%
Homeowners Insurance$3,200/yr$1,200/yr
First-Time Buyer Program
CHFA Down Payment Assistance
Up to $25,000 second mortgage
HHFDC Hula Mae Program
Below-market rate mortgages
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 Hawaii. 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.

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
Hawaii
Home Price$830,000
Down Payment (10%)$83,000
Loan Amount$747,000
Monthly P&I$4,722
Monthly Property Tax$194
Monthly Insurance$100
Monthly PMI$311
Total PITI$5,326/mo
Annual property tax: $2,324

The monthly payment difference is $1,685/month — thats $20,220/year or $607K 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.

Colorado
$156K/yr
minimum household income
Hawaii
$228K/yr
minimum household income

To afford the median home in Hawaii, you need a household income of approximately $228K/year. In Colorado, you need $156K/year — less by $72K/year. That $72K 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 Hawaii, with median prices running 37% less ($310K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Hawaii may find Colorado far more accessible, particularly when combined with local down payment assistance programs.

Property tax rates are similar in both states (Colorado: 0.51%, Hawaii: 0.28%), 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.

Homeowners insurance is significantly cheaper in Hawaii ($1,200/year) compared to Colorado ($3,200/year). That's an extra $2,000 per year — or $167/month — eating into your budget in Colorado. Colorado's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.

Closing costs are a one-time but significant expense. Hawaii averages $12K in closing costs (1.5% of purchase price) while Colorado averages $7K (1.4%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, while Hawaii's HHFDC Hula Mae Program offers Below-market rate mortgages. 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 $310K less than Hawaii on average. That translates to roughly $1,685 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

Colorado vs AlaskaColorado vs ArizonaColorado vs CaliforniaHawaii vs AlaskaHawaii vs ArizonaHawaii vs California

Frequently Asked Questions

Is it cheaper to buy a home in Colorado or Hawaii?
Colorado is cheaper overall. The median home costs $520K compared to $830K in Hawaii, and the total monthly PITI payment is $3,641 versus $5,326. That works out to $1,685 less per month or $20,220 less per year in Colorado.
How much more are property taxes in Colorado vs Hawaii?
Colorado has a property tax rate of 0.51% compared to 0.28% in Hawaii. On the median home, that means Colorado homeowners pay approximately $2,652/year in property taxes versus $2,324/year in Hawaii — a difference of $328/year.
Which state has better first-time buyer programs, Colorado or Hawaii?
Colorado offers the CHFA Down Payment Assistance (Up to $25,000 second mortgage), while Hawaii has the HHFDC Hula Mae Program (Below-market rate mortgages). 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.

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