Are you planning a move from Texas to Colorado?
Long-distance moves between states can be a major decision. As a result, it is vital to know what to expect out of your new state in terms of quality of life, housing, and other key factors.
When moving from Texas to Colorado, you can expect a higher overall cost of living and higher housing costs. In exchange, you can benefit from lower taxes, a stunning natural environment, and a thriving economy with many professional opportunities.
In this article, we discuss everything you need to know about moving from Texas to Colorado. Keep reading to learn more about the job market, housing, and other important considerations!
Why is Everyone Moving to Colorado?
Moving to Colorado is on the bucket lists of many people, both old and young.
The state is often referred to as “Colorful Colorado” thanks to its stunning natural scenery that attracts locals and tourists alike to explore the great Colorado outdoors all year round. This natural beauty is one of the top reasons people want to move to Colorado — to get closer to nature.
Aside from the exceptional outdoor environment, Colorado has a lot to offer to all kinds of people. Colorado is home to several larger cities that have plenty of professional opportunities, such as Denver and Colorado Springs. For families looking for a more laid-back, suburban environment, there are plenty of smaller cities in Colorado like Boulder and Manitou Springs to put down roots in.
Here are three additional reasons why so many people want to move to Colorado:
- Awesome Food & Drink Scene: Colorado is home to a plethora of craft breweries and unique eating experiences that make the state a food lover’s delight. With its proximity to the U.S. southern border and Texas, Colorado offers a diverse mix of flavors and culinary themes.
- Cannabis Industry: As a pioneer of the U.S. cannabis industry, it’s hard to deny that this is one of the major reasons the state is a popular place to move. Not only do people want access to legal cannabis products but the industry as a whole offers many new job opportunities and pathways to professional careers that make it a big draw for new state residents.
- Culture & Sports: Colorado has no shortage of arts, culture, and sporting centers. From world-class museums to sporting arenas for every sport you can imagine, Colorado has the cultural attractions that make the state an endless source of adventure and fun.
Colorado vs. Texas: 4 Key Cost of Living Factors
If you are moving from Colorado to Texas, it is important to consider how your cost of living will change between these states. The cost of living varies from city to city as well, meaning you should do even more specific research about the city or town in Colorado you are moving to.
An additional important factor to consider about the cost of living in Colorado is the weather. While Texas experiences warm weather year-round with only the occasional major winter weather event, Colorado is an entirely different story. In the northern and more mountainous regions of Colorado especially, the winter months can drive up energy and heating costs.
As a whole, Colorado is considered to be roughly 26.7% more expensive than Texas. Once again, however, this depends on what area of Colorado you are in, as smaller cities and towns tend to be more affordable than large cities like Denver.
Another important consideration is taxes. In Texas, there is no individual income tax rate and the state sales tax rate is 6.25%. Comparatively, the individual income tax rate in Colorado is 4.55% and the state sales tax rate is 2.90%. Colorado also has a lower property tax rate of 0.54% compared to Texas’s 1.66%.
Keeping all of these considerations in mind, let’s cover four key cost-of-living factors to know when moving from Texas to Colorado:
1. Buying a House
To compare the property markets in Texas and Colorado, we will look at one major city and one suburban city in each state. For Colorado, we take a look at Denver (pop. 711,463) and the nearby city of Boulder (pop. 104,175). In Texas, we look at Houston (pop. 2.28 million) and Beaumont (pop. 112,556).
In terms of buying a house, we compare these four cities according to the average home listing and home sold prices as of the most recent data for 2023.
- Denver: As of January 2023, the median price for a home listing in Denver was $565,000 and the median home sold price was $460,000, with an upwards trend of 6.6% year-over-year. Denver is currently considered a buyer’s market. (Source: Realtor.com)
- Boulder: Though smaller than Denver, Boulder is considered a high-end city thanks to the economic prosperity brought to the city by ski resorts. The median listing price in Boulder as of January 2023 was $1.2 million, while the median home sold price was $875,000. Home prices are trending upwards dramatically at 22.1% in Boulder year-over-year. (Source: Realtor.com)
- Houston: Houston’s housing market can range fairly drastically, varying from as low as $1,500 to as high as $27.5 million. In January 2023, the median home listing price was $344,900 and the city is currently considered to be a buyer’s market. (Source: Realtor.com)
- Beaumont: Similarly to Houston, Beaumont’s housing prices can range dramatically, with lows of $9,500 and highs of $6.2 million. The median home listing price as of January 2023 is $240,000 and the city is currently considered to be a buyer’s market. (Source: Realtor.com)
As you can see, property prices are significantly higher overall in Colorado than in Texas. However, though these property prices are higher, they also show an upwards trend in their price movement, meaning these pricier properties could prove to be profitable investments.
2. Renting A House
If you are renting rather than buying a home in Colorado, rental prices can range dramatically depending on what types of amenities you want and the neighborhoods you look for rentals in.
While you can opt for the cheaper neighborhoods and apartments with fewer amenities, choosing a middle-range apartment can improve your quality of life and put you closer to both personal and professional opportunities within your chosen city of town
The following cities are named as the top five best places to live in Colorado and Texas, including the corresponding average rent prices:
- Denver: Median 2-bedroom rent is $2,466, and median household income is $72,661.
- Boulder: Median 2-bedroom rent is $2,271, and median household income is $72,279.
- Colorado Springs: Median 2-bedroom rent is $1,700, and median household income is $67,719.
- Fort Collins: Median 2-bedroom rent is $1,545, and median household income is $70,528.
- Castle Rock: Median 2-bedroom t rent is $1,694, and median household income is $113,585.
- Austin: Median 2-bedroom rent is $1,713, and median household income is $71,576.
- Houston: Median 2-bedroom rent is $1,918, and median household income is $53,600.
- Dallas: Median 2-bedroom rent is $2,454, and median household income is $54,747.
- Fort Worth: Median 2-bedroom rent is $1,835, and median household income is $64,567.
- San Antonio: Median 2-bedroom rent is $1,489, and median household income is $53,420.
When it comes to the cost of utilities in Texas versus Colorado, we must once again emphasize that utility costs in Colorado can vary drastically according to what part of the state you live in.
Take a look at this comparison of average utility costs in Colorado and Texas:
Colorado: SoFi reports that the average amount spent on utilities each month in Colorado is $371. Here is an itemized breakdown of these utilities:
- Electricity: $137 per month
- Gas: $88 per month
- Cable & Internet: $107 per month
- Water: $39 per month
Texas: SoFi reports that the average amount spent on utilities each month in Texas is $395. Here is an itemized breakdown of these utilities:
- Electricity: $132 per month
- Gas: $111 per month
- Cable & Internet: $115 per month
- Water: $37 per month
4. Job Opportunities
Both Colorado and Texas have advantages to offer in terms of job opportunities.
The average salary in Colorado is $56,828, with the majority of salaries ranging from $40,804 to $71,786. Comparatively, the average salary in Texas is $52,590, with the majority of salaries ranging from $37,181 to $66,633. The three Colorado cities with the highest salaries are Greenwood Village, Colorado City, and Denver. Meanwhile, in Texas, the three cities with the highest salaries are Westlake, Plano, and Irving.
As for what types of jobs are available, here is a breakdown of the top five industries in each state:
Top Industries in Colorado: IBIS World reports that the GDP (gross domestic product) of Colorado was $371.3 billion in 2022, with the five leading industries including:
- Oil Drilling & Gas Extraction ($37.4 billion in 2022 revenue)
- Tourism ($29.9 billion in 2022 revenue)
- New Car Dealerships ($21.5 billion in 2022 revenue)
- Hospitals ($21.1 billion in 2022 revenue)
- Supermarkets & Grocery Stores ($16.8 billion in 2022 revenue)
Top Industries in Texas: IBIS World reports that the GDP of Texas in 2022 reached an impressive $1.9 trillion, with the five leading industries including:
- Gasoline & Petroleum Wholesaling ($298.1 billion in 2022 revenue)
- Oil Drilling & Gas Extraction ($210.9 billion in 2022 revenue)
- Petroleum Refining ($170.2 billion in 2022 revenue)
- Gasoline & Petroleum Bunk Stations ($149.6 billion in 2022 revenue)
- New Car Dealerships ($116.0 billion in 2022 revenue)
Living in Colorado: Pros and Cons
All states come with positives and negatives, and Colorado is no exception.
When planning a move to Colorado, taking the time to review the pros and cons of the state can help you make important decisions, such as which city to move to and whether to buy or rent a home.
Here are the pros and cons of living in Colorado:
Pros of Living in Colorado
- Economic Opportunity: Colorado has a thriving economy with all sorts of opportunities for improving your financial health and building wealth. One key benefit of Colorado is the low overall tax rates in the state, with Colorado having one of the lowest sales tax rates in the U.S.
- Exceptional Recreation: For those who love the outdoors, Colorado is a haven for outdoor recreation of all kinds. From hiking and backpacking to rock climbing, skiing, and whitewater sports, Colorado’s wide range of outdoor activities keeps you entertained for years to come.
- Diverse Industries: Though we highlighted five of the best-performing industries in Colorado above, the reality is that Colorado has a diverse range of industries to choose from in your professional life. Innovative industries in particular are helping to set Colorado apart, including the cybersecurity, aerospace, and biotechnology industries.
- Property Investments: Home prices are generally higher in Colorado compared to Texas or other states. However, Colorado’s housing market is still showing signs of growth, making these pricier properties good investments if you plan on flipping the property for a profit soon.
- Good Healthcare: Compared to the rest of the country, Colorado is generally considered to have a higher quality healthcare system. As a whole, Colorado’s healthcare system ranks seventh overall in the country, 23rd in healthcare costs, and 15th in accessibility.
Cons of Living in Colorado
- Severe Weather: Though the dramatic seasons of Colorado can be breathtaking, the colder months can bring on severe weather and even more severe temperatures. This can make Colorado — especially the northern parts — less ideal for people who favor warm and mild weather.
- Higher Cost of Living: Colorado objectively has a higher overall cost of living than other states. However, the trade-off is greater job opportunities, as well as well-maintained public areas like state parks and cultural centers.
- Expensive Housing: There’s no denying that housing in Colorado can be pricey. Yet, if you are clever about what city you choose to live in, you can find affordable housing within your price range without having to sacrifice the amenities and quality of life you want.
- Environmental Threats: Like many U.S. states, Colorado is facing increasingly dangerous environmental threats, one of the biggest being wildfires. The areas of Colorado where properties are considered the most at-risk of wildfire damage include El Paso, Douglas, and La Plata.
Final Thoughts: What to Look for in a Long-Distance Moving Company
As you plan your move from Texas to Colorado, it is crucially important to consider how you will get your belongings from one place to another.
Long-distance moves can be tricky, as you have to choose between moving your belongings yourself or hiring a professional moving company to do it for you.
If you opt for the latter, look for these key characteristics in a long-distance moving company:
- Transparent Pricing: If you’re not careful, working with a moving company for a long-distance move can quickly accrue additional fees from the extra driving mileage and hours worked. As such, you should select a company that offers fair and transparent pricing so you can know how much to expect to pay and budget accordingly.
- Insurance Options: No matter how perfectly you plan a move, accidents can always happen. Finding a moving company that offers insurance for your belongings either as part of the pricing model or for an additional fee can be essential. With insurance, you are protected against financial losses that may occur if your belongings are lost, damaged, or stolen.
- Excellent Reviews: Finally, always seek out moving companies that have excellent customer reviews. These days, almost all companies can be found and reviewed online, making it easy to find a company’s online presence and check out what customers have to say. After all, you won’t find a more honest take on a company than from the mouths of former customers themselves.
To receive a free estimate from Peak To Peak Movers for your big move from Texas to Colorado click here.
Remember that the key to a successful long-distance move lies in adequate planning. The earlier you begin planning for your move, the more stress-free your moving day will be!