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CO

Buying a Home in Colorado

Complete guide to the Colorado real estate market

$582,000
Median Home Price
0.50%
Property Tax Rate
5,773,714
Population
West
Region

Overview

Colorado combines stunning mountain scenery with a thriving economy centered on technology, aerospace, and outdoor recreation. The state has experienced significant population growth, particularly in the Denver metro area, driven by quality of life and strong job markets. From urban lofts in Denver to mountain retreats in Aspen, Colorado offers diverse real estate options.

Colorado Real Estate Market

Colorado's real estate market saw explosive growth during the pandemic as remote workers sought mountain lifestyles. While prices have moderated from 2022 peaks, Denver remains competitive with limited inventory. Mountain resort towns like Vail and Breckenridge command premium prices. The Front Range corridor from Fort Collins to Colorado Springs continues to attract buyers seeking a balance of urban amenities and outdoor access.

Property Taxes in Colorado

Colorado has relatively low property taxes due to the Gallagher Amendment and TABOR restrictions. Residential property is assessed at a reduced rate.

Average effective rate: 0.51%

Annual tax on median home: ~$2,805

Assessment rate: Approximately 6.95% of actual value

First-Time Buyer Programs

CHFA Programs: The Colorado Housing and Finance Authority offers several options:

  • FirstStep - Down payment assistance up to 4%
  • FirstGeneration - For first-generation homebuyers
  • Income-qualified conventional and FHA loans
  • Mortgage Credit Certificate for tax savings

Closing Costs in Colorado

Closing costs in Colorado typically range from 2-3% of the purchase price.

Common costs include:

  • Title insurance: Based on purchase price
  • Documentary fee: $0.01 per $100
  • Recording fees: $13 first page, $5 each additional
  • Attorney fees: Optional but recommended

Frequently Asked Questions

Colorado offers excellent quality of life with outdoor recreation, strong job markets, and a growing economy. However, prices are above the national average, particularly in Denver and mountain communities. Lower property taxes help offset higher purchase prices.

Colorado's cost of living is about 10-15% above the national average, primarily due to housing costs. However, the state has no tax on groceries and moderate property taxes, which helps balance expenses.

Colorado does not have statewide rent control. Local municipalities are preempted from enacting rent control under current state law.