Half a million dollars is a lot of money. A LOT! Naturally, that should probably buy you a house that’s big enough for your entire family, pets, and then some. Right?

Well, that’s true… in some places.

You might get a mansion or you might get a two-bedroom condo for that money, depending on where you buy. As strange as that is, that’s the reality of the housing market in the U.S. right now.

Prices are soaring. And demand isn’t dropping.

Colorado and Texas are two great examples because both states are booming and attracting a lot of newcomers from all parts of the country.

Still, $500K won’t get you the same house.

What You Can Buy in Colorado for $500K

Generally speaking, the prices of real estate keep going up, and, although $500,000 is not a small budget, it won’t stretch as far as you would hope in Colorado. In Denver or Boulder, for example, that amount of money will get you a condo or a townhome that might even be under 1,200 square feet.

You might get a yard with it, you might not.

At the start of the third quarter of 2025, the median single-family home price was $590,000. – Colorado Association of REALTORS®

You’ll get a better deal in Colorado Springs, but even there, single-family homes at this price are mostly older builds in established neighborhoods. You won’t be able to get shiny new construction if you don’t up your budget. You’ll get more square footage in the suburbs along with a small yard, but half a million still won’t buy much land.

What you’re really paying for in Colorado is lifestyle. The outdoors is right at your doorstep, and the national parks are never far away.

What You Can Buy in Texas for $500K

$500,000 will buy you more in Texas than it’ll do in a lot of other states. In larger, more popular cities (e.g., Dallas, Austin, Houston, San Antonio), you’ll still be able to grab an amazing deal, but in other cities, you’ll practically get to pick and choose.

If you’re looking at homes in urban neighborhoods in, say, Austin, you’ll get a smaller condo or a townhome for $500,000, but if you’re willing to be in the suburbs, you’ll be able to get a truly beautiful, spacious home: 4 or 5 bedrooms, big kitchens, a home office, a media room…

Basically, you’ll like what you buy.

In the first quarter of 2025, the median home sales price in Texas was $331,000 (USD); a 0.3% YoY increase. – Texas Real Estate

After all the browsing and researching, you’ve narrowed down your list of candidates to a few houses (or THE one), you shouldn’t wait idly.

Why? Well, you likely aren’t the only one looking at those properties.

To make things worse, your competition isn’t only other families. For instance, there are cash home buyers in Dallas, Texas – businesses that specialize in buying properties quickly by offering straight-up cash – resulting in properties being taken off the market much more rapidly.

You don’t think that ‘cash’ doesn’t have a major effect in these situations?

Think about this: In Texas, the average time a house stays on the market is 61 days. The time a property stays on the market drops to 7-30 days if cash is used to close out the deal; a MASSIVE difference.

Things to Think About Before Making ‘The Decision’

While the price tag is the first thing most people will think about and will base their final decision on, it isn’t the only factor you should consider.

Here are a few other things to look at before finalizing your choices:

Location & Commute

In cities, you’ll get a smaller home for half a million or maybe a condo. That might not sound ideal, but the commute to work will be a lot shorter if there even is one. You might be able to take a walk to your office every morning!

Property Age/Condition

While older construction (e.g., Boulder’s mid-century ranches) may have a type of charm that comes with them, this ‘added character’ also usually comes with extra maintenance, plus you can expect energy bills to be a bit higher since things such as insulation weren’t that advanced before, meaning you’re torn between investing a lot to add insulation (likely heavy renovations) or you’re stuck paying higher bills and having hotter summers and colder winters.

Newer construction won’t have the same type of issue. They’re made to be more efficient, meaning they’re move-in ready. The downside to this might be that they’re a bit further away from these central locations (though, you might strike lucky and find some newer builds or a fully renovated property closer.

Lifestyle Priorities

$500K can mean different things depending on the stage of life you’re at. If you have a family, of course, you won’t want a small place because you need room for everyone to be comfortable.

But a young professional will sacrifice money to be close to the city. If you’re retired, you’ll most likely want a home that doesn’t require a lot of maintenance.

Competition

Conditions on the market are a huge factor when it comes to how far your money goes; probably the biggest one.

And it makes perfect sense. If you want to buy a house in one of the more popular areas, there’s a high chance others are thinking the same. This means the supply will be limited, plus the price tag will be premium. So $500K doesn’t seem THAT much if you think about these factors.

Also, what you should account for are mortgage rates.

Conclusion

Neither location is strictly ‘better’ than the other. Both Colorado and Texas have great opportunities. It really comes down to what’s important to you.

Do you want Boulder’s Flatirons and foothill trailheads – think bungalows, mid-century ranches, or perhaps newer townhomes/condos?

Or perhaps you’re looking to buy in Dallas’s level prairie and greenbelt suburbs (newer single-family construction, or more of a master-planned neighbourhood)?

John Mali Director of Media Relations

Director of Media Relations at AboutBoulder.com

[email protected]