California vs Colorado in 2026: What Your Equity Really Buys

Everyone tells a Californian that their equity buys a mansion in Colorado. That's true if you're selling on the coast or in Southern California. It's flat out false if you're selling in Sacramento. And there's one big cost that's genuinely worse in Colorado, which almost nobody says out loud.

I'm a Realtor in Longmont, and a lot of the people I help are making this exact move. Most of them were thrilled with how it turned out. A couple of them should have called me sooner. So here's the real math, town by town, plus what a normal week actually feels like here and the honest downsides, because if I only tell you the good stuff, you shouldn't believe any of it.

If you'd rather watch it, I walked through all of this on camera.

Quick answer

For most Californians, yes, Colorado is cheaper, but it depends on where you sell. The California median single family home sold for about $901,000 in August 2026 (California Association of Realtors), against about $611,000 in Longmont and $649,000 in Fort Collins (IRES MLS, August 2026). Sacramento County's median was about $549,000, so Sacramento sellers usually pay more here, not less. Colorado's flat 4.4% income tax beats California's 13.3% top rate (Tax Foundation, 2026). The catch is home insurance, which averages about $4,137 a year in Colorado against about $2,578 in California (Insurify, 2026).

Is California still the #1 state moving to Colorado?

Not anymore. In 2022, about 33,200 Californians a year moved to Colorado, more than any other state. The most recent Census numbers, released in January 2026, put it at about 19,700. Texas holds the #1 spot now, at about 27,600 a year (USAFacts, from Census ACS 2024 data).

That matters for you, because the market you're walking into is completely different from the one you heard about. In 2021 and 2022, buyers were landing here with cash and waiving everything, and a lot of them were fellow Californians. That's over. Right now the buyer pool is thinner, homes are sitting longer, and sellers are negotiating again. If the stories from 3 years ago scared you off, it's worth another look.

What does the California median buy in Northern Colorado?

Here's the same month, August 2026, side by side.

Sources: California Association of Realtors and IRES MLS Local Market Updates, August 2026.

On the statewide median, you're looking at a house here that costs somewhere between half and two thirds of what you're selling. It gets more dramatic the closer you are to the coast. Orange County's median is more than double Longmont's. San Jose is about 3 times Longmont and more than 4 times Greeley.

Should I move from Sacramento to Colorado?

Run your numbers first, because this is where the whole story flips.

Sacramento County's median was about $549,000 in August. Longmont was about $611,000 and Fort Collins about $649,000. You'd be paying more here, not less. Only Greeley, Johnstown and the Carbon Valley towns (Firestone, Frederick and Dacono) come in lower.

And one more. Boulder's median was about $1,150,000. That's higher than the California statewide median and higher than San Diego County. If somebody told you Colorado is cheap, they weren't talking about Boulder.

The honest version: if you're selling in Los Angeles, Orange County, San Diego or the Bay Area, the equity story is real and it's big. If you're selling in Sacramento or the Inland Valley, slow down. The move can still be right for you. Just don't make it for the money.

Is Colorado cheaper than California on taxes?

I'm a Realtor, not a CPA, so treat this as a framework and run your own situation with a tax pro.

Income tax is the big one. California is graduated and tops out at 13.3%. On wage income, the Tax Foundation puts the combined top rate at 14.6%, the highest in the country. Colorado is a flat 4.4%. On a good income, that's real money every single year.

Property tax is where most people get it backwards. On paper, Colorado is cheaper. The effective rate on owner occupied homes is about 0.50% here and about 0.70% in California (Tax Foundation, 2026). But you already know your bill doesn't feel like 0.70%. That's Prop 13. Your assessed value can only go up 2% a year for as long as you own the home, so if you've been in your house 20 years, your bill is unusually low.

Colorado has nothing like Prop 13. Values here are reassessed every 2 years, so your bill tracks the market. Colorado property taxes also went up in 2026 in a lot of places, even where values went down, because a temporary discount expired. I broke that down here: Colorado's 2026 Property Tax Hike, Explained.

So don't compare rates. Take the actual house you're looking at, get its actual tax bill, and compare it to the dollars you actually pay now.

Sales tax is lower here too. California's state rate is 7.25% and Colorado's is 2.90%. Once you add local taxes, the averages land around 8.99% and 7.89% (Tax Foundation, 2026).

Why is home insurance so expensive in Colorado?

This is the part I'd want somebody to tell me. Home insurance is worse in Colorado. Not a little. A lot.

Insurify's 2026 report puts the average Colorado homeowners premium at about $4,137 a year. California is about $2,578. That's about 60% more than the state you're leaving.

Everybody assumes it's wildfire. It's actually hail. The Colorado Division of Insurance studied this and found hail is the #1 driver of homeowners premiums here, somewhere between 26% and 54% of what you pay depending on the county. Wildfire was a fraction of that in most places.

So when you budget this move, don't carry your California insurance number over. Before you write an offer:

1. Get a real quote on the actual address.
2. Ask how old the roof is.
3. Ask what your hail deductible is. A lot of policies here set it as a percentage of the home's value, not a flat dollar amount.

If you want to talk to a Colorado insurance agent, text me and I'll connect you with the best person I know.

The short version: Colorado wins big on income tax and loses on insurance.

What does daily life feel like at 5,000 feet?

Enough numbers. Here's the part you can't get off a spreadsheet.

The altitude is milder than you think. Longmont sits at 4,981 feet and Fort Collins is just under 5,000. That's high plains, not mountain altitude, and most people adjust in a couple of weeks.

The dry air cuts both ways. I can push mow my lawn at 92 degrees and barely break a sweat, and your cereal never goes stale. Your skin, on the other hand, is going to be dry for about a month. Your Colorado survival kit is lotion, ChapStick and sunscreen, even if you're coming from California.

You'll use the heater and the AC on the same day. Heater in the morning, air conditioning in the afternoon, heater again at night. It's kind of a running joke here.

The snow doesn't stay. Fort Collins averages about 51 inches a year (NOAA), which sounds like a lot until you see how it works. It snows, and 2 days later it's 60 degrees and gone. The snowiest month is March, not January. And you'll still want sunscreen in the middle of winter, because the sun is out most days.

There are almost no mosquitoes. Maybe a week's worth all summer.

And the mountains are a normal Saturday. What people pay thousands of dollars to come do on vacation, we do on a Saturday. Up into the mountains for a hike or some fishing, and back down before dinner.

What are the downsides of moving from California to Colorado?

Here are 4 honest ones, specifically for Californians.

1. Insurance. Covered above. You'll pay more.

2. There's no ocean. It sounds obvious. It isn't obvious until about month 8, when you realize the closest salt water means a plane ride. My wife Greta and I lived in Hawaii for 9 years before we moved to Colorado, and leaving the ocean was one of the hardest things I've done. It takes some adjustment. After a year or 2 you get into the rhythm of the mountains, and 6 years in, we don't plan on going anywhere.

3. Wages. California pays more. The average weekly wage there was $1,986 in the first quarter of 2026, against $1,774 in Colorado, about 12% more (Bureau of Labor Statistics). Colorado's unemployment rate was lower, 4.0% against 5.1% as of August 2026, and wages here have been growing faster. The practical version: if you're bringing a California salary with you, you win. If you're job hunting once you get here, plan for a pay cut.

4. Metro districts on new construction. If you're looking at a new build, ask whether the home is in a metro district. That's an extra tax layered on top of your property tax to pay for the neighborhood's roads, water lines and parks. It can add serious money to your monthly payment, and it won't show up in the Zillow listing.

Who should actually make this move?

If you're selling on the coast or in Southern California, you've got real equity, and you're either bringing your income with you or you're retired, then in my opinion this is one of the best trades going right now. You'll almost certainly cut your income tax bill, buy more house, and get an outdoor life that's hard to beat.

If you're coming from Sacramento or the Inland Valley expecting a bigger house for the same money, the math might not be there. But there's more to this move than the money. Our own move was almost 100% about lifestyle, and for us that mattered more than a bigger house or a bigger savings account.

And if you need the ocean, or you need a California salary you can't bring with you, this might not be your move. That's okay. Not every move is the right move.

What should I do before I decide?

1. Pick 2 or 3 towns, not 10. Longmont, Loveland, Berthoud, Fort Collins and Erie all have a different feel, and you won't figure that out from a website.

2. Come out and get out of the car. Walk a neighborhood. Ask somebody what they like about living there and what they don't. Never just ask "do you like it?" You only get half the story. People here will happily stop and talk to you.

3. Get a real insurance quote and a real tax number on a real address before you're emotionally committed. Not an average.

Your job right now isn't to find the house. It's to take places off the list. You'll find a house you love in any of these towns. What you're really deciding is what your life looks like on a Tuesday.

If you're 6 to 9 months out, that's exactly the right time to build the plan. I bought my own house here sight unseen, from Hawaii, with nobody guiding me. I got lucky. You don't have to.

If you're comparing Colorado with Texas too, here's that breakdown: Moving From Texas to Colorado in 2026: The Real Numbers.

Get the free California to Colorado guide

Every number in this post is in my free guide: the town by town prices, the tax side by side, and the insurance questions to ask before you make an offer, all in one place.

Get the California to Colorado guide

Or if you'd rather just talk it through, call or text me at (720)741-7474, or grab a time on my calendar.

Sources: California Association of Realtors (August 2026); IRES MLS Local Market Updates (August 2026); USAFacts from U.S. Census ACS (2024, released January 2026); Tax Foundation (2026); California Board of Equalization; CPR News (February 2026); Insurify (2026); Colorado Division of Insurance (2026); Bureau of Labor Statistics (Q1 and August 2026); NOAA 1991 to 2020 normals; USGS. I'm a licensed Colorado real estate broker, not a CPA, attorney or insurance agent. Nothing here is tax, legal or insurance advice.

Noah Inhofer · Colorado License #100088958 · eXp Realty
2319 Spencer St, Longmont, CO 80501
Equal Housing Opportunity