Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Colorado and Texas. Updated for 2026.
Colorado and Texas are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $980/month — that’s $11,760/year or $353K over the life of a 30-year loan. Buying in Texas is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in Colorado, you need a household income of approximately $156K/year. In Texas, you need $114K/year — less by $42K/year. That $42K income gap means Texas is accessible to a significantly wider range of households.
Texas offers meaningfully lower home prices than Colorado, with median prices running 40% less ($210K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Colorado may find Texas far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Colorado charges 0.51% while Texas charges 1.8%, a gap of 1.29 percentage points. On the respective median homes, this means Texas homeowners pay roughly $5,580 per year in property taxes versus $2,652 in Colorado. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Insurance costs favor Colorado at $3,200/year versus $3,800/year in Texas, a difference of $600 annually. While not the largest cost factor, this adds up to over $6K 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. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. 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.
The bottom line: Texas homes cost $210K less than Colorado on average. That translates to roughly $980 less per month in total housing costs if you choose Texas. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.