The True Cost of Homeownership in Colorado Right Now
Owning a home in Colorado in 2025 comes with more than just a mortgage payment. The median home price is about $550,000, and while that’s down slightly from recent years, it still requires careful financial planning to make ownership sustainable.
Once you get past the purchase price, there are significant add-ons that shape the real cost of homeownership.
Closing Costs
Closing costs in Colorado typically run between 6% and 6.7% of the purchase price. For a $550,000 home, that works out to around $33,000 to $37,000 just to finalize the transaction. These costs include things like lender fees, title insurance, and prepaid property taxes.
Property Taxes
Colorado keeps its tax rates on the lower side compared to other states, but they still add up. On a median-priced home, expect to pay around $2,700 to $3,000 per year, depending on the county you live in. If you buy in pricier areas like Boulder or Douglas County, you’ll likely be on the higher end of that range.
Homeowners Insurance
Insurance costs have been climbing steadily due to wildfire and hail risks. In 2025, the average homeowner in Colorado is paying between $4,600 and $6,600 per year for coverage. Premiums can be even higher depending on location, property type, and recent claims in your area.
Maintenance and Hidden Costs
The expenses don’t stop once you move in. Annual upkeep, repairs, and surprise issues average nearly $25,800 per year in Colorado—higher than the national average. Think roof repairs, appliance replacements, landscaping, and general wear and tear. These are the costs that homeowners often underestimate.
The true cost of owning a home in Colorado goes well beyond the listing price. Between closing costs, taxes, insurance, and maintenance, the numbers add up quickly. That said, with the right preparation, homeownership here can still be one of the most rewarding financial and personal decisions you make.
If you’re starting to think about buying, now is the time to talk with a mortgage professional. Your lender can walk you through the financing options, run the numbers for your specific situation, and help you create a plan that makes owning a Colorado home both realistic and exciting.
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