Colorado’s stunning landscapes and vibrant cities make it a desirable place to live, but the cost of living here can vary widely depending on where you settle down. From the bustling streets of Denver to the picturesque mountain towns, housing and everyday expenses tend to be higher than the national average here. However, with outdoor adventures at your doorstep and a booming job market, many people who move to Colorado find the trade-offs worthwhile. Whether you’re drawn to the natural beauty or its growing economy, understanding the cost of living in Colorado is key to making the most of what the Centennial State has to offer.
Housing costs: Median home prices and average rent in Colorado
Housing costs here are on the higher side, with the average rent in Colorado sitting at around $1,700 per month, slightly above the national average of $1,645. The higher rent prices reflect the state’s popularity and the demand for homes in both urban and suburban areas. In cities like Denver and Boulder, the competition for rental properties can drive prices even higher, particularly for desirable neighborhoods close to amenities and outdoor activities. Despite these costs, many residents appreciate the value of living in a state known for its stunning landscapes, recreational opportunities, and strong job market.
Colorado housing costs: Average rents and median home sale prices
| City in Colorado | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $439,000 |
| Arvada | $1,475 | $1,720 | $600,000 |
| Aurora | $1,595 | $2,040 | $470,000 |
| Boulder | $2,170 | $2,450 | $970,000 |
| Centennial | $1,990 | $2,300 | $578,000 |
| Colorado Springs | $1,450 | $1,700 | $448,000 |
| Denver | $2,100 | $2,770 | $570,000 |
| Durango | $1,980 | $2,590 | $670,000 |
| Fort Collins | $1,800 | $2,000 | $554,000 |
| Grand Junction | $800 | $1,095 | $441,000 |
| Greeley | $1,420 | $1,680 | $400,000 |
| Littleton | $1,925 | $2,500 | $575,000 |
| Longmont | $1,830 | $2,230 | $534,500 |
| Pueblo | $1,400 | $1,470 | $260,000 |
| Thornton | $1,690 | $2,115 | $555,000 |
| Westminster | $1,900 | $2,500 | $543,000 |
Housing costs in popular Colorado cities
Boulder
Living in Boulder comes with some breathtaking perks—and a price tag to match. With one-bedroom apartments averaging $2,170 and two bedrooms around $2,450, the cost of living in Colorado hits new heights here. And if you’re looking to buy, brace yourself: home prices have climbed 8.4% year-over-year, with the median price now around $970,000. But for that price, you get access to world-class hiking, a buzzing food scene, and more so while Boulder’s charm may cost you, it’s hard to beat the lifestyle.
Read more: 12 Popular Boulder, CO Neighborhoods | 10 Most Affordable Boulder Suburbs to Live in
Colorado Springs
Colorado Springs is where the cost of living in Colorado starts to look more reasonable. With rents around $1,450 for a one-bedroom and $1,700 for a two-bedroom, it’s close to national averages, giving you more bang for your buck without skimping on those mountain views. The median home sale price sits at about $448,000, so buying a home is also more accessible here. With its blend of outdoor adventure and a welcoming atmosphere, Colorado Springs delivers a balance between affordability and Colorado’s iconic lifestyle.
Read more: Colorado Springs vs. Denver: Which City is Right for You? | Should I Move to Colorado Springs? 9 Pros and Cons
Denver
Denver, the vibrant capital of Colorado, boasts a lively atmosphere and a booming job market, but this comes at a higher cost of living. The average rent in Denver is approximately $2,100 for a one-bedroom and $2,770 for a two-bedroom, significantly higher than the average rent in Colorado and national averages. While the cost of living in Colorado’s largest city can be steep, residents enjoy a wealth of recreational activities, diverse neighborhoods, and a strong sense of community.
Read more: Should I Move to Denver? 11 Pros and Cons to Consider | 19 Denver Neighborhoods: Where to Live in 2024
Fort Collins
Known for its college town vibe, craft beer scene, and easy access to outdoor activities, Fort Collins offers a fun lifestyle but with a little higher cost of living. Rent prices in Fort Collins exceed the average rent in Colorado, with a one-bedroom apartment averaging $1,800 and a two-bedroom averaging $2,000. Home prices in Fort Collins are moderate compared to the rest of the state, but with the median sale price at $554,000, it’s quite higher than the national median sale price of $439,000.
Read more: 7 Popular Fort Collins Neighborhoods
Pueblo
Pueblo offers a more budget-friendly option within Colorado, with an average rent of $1,400 for a one-bedroom apartment and $1,470 for a two-bedroom. These rent prices are considerably lower than the average rent in Colorado, making it an appealing destination for those looking for affordability. And for those considering homeownership, the median home price in Pueblo is around $260,000, significantly less than in many other Colorado cities. This affordability, combined with a rich cultural heritage and access to outdoor recreation, makes Pueblo a great choice for those seeking a lower cost of living in Colorado.
Read more: What is Pueblo, CO Known For? 5 Things to Love About this City
Utility costs in Colorado tend to be lower than nationwide costs
Utility costs in Colorado tend to be lower than national averages, which helps offset the higher housing expenses and contributes to the overall cost of living in Colorado. Residents typically pay for electricity, water, gas, trash services, and internet, with some landlords bundling utilities into the rent. The state’s varied climate plays a role in utility expenses: summers can lead to higher electricity bills from air conditioning, especially in lower elevations, while winters in the mountain regions may see an increase in heating costs. Overall, Colorado’s utility costs remain reasonable, even with the state’s seasonal shifts in weather.
Energy bill comparisons: Colorado cities vs. nationwide average
| Monthly Energy Bill | Comparison to National Avg. | |
| National Average | $200.07 | |
| Colorado Springs | $160.12 | -13% less |
| Denver | $156.66 | -13% less |
| Grand Junction | $172.63 | -8% less |
| Pueblo | $194.96 | -2% less |
| Westminster | $165.33 | -10% less |
Groceries are slightly more affordable in Colorado
Grocery costs in Colorado come in around 8% lower than the national average, adding to the state’s appeal despite higher housing expenses. Whether you’re picking up fresh produce at a local farmer’s market or stocking up on pantry staples at a big chain, the lower grocery bills help keep the cost of living in Colorado more manageable. While grocery prices can vary depending on the region and product, Colorado residents can still stretch their dollar a bit further compared to other states. For example, while the national average for a dozen eggs is $3.47, in Denver, they’re slightly higher at $3.92. However, potatoes in Denver are a bit more budget-friendly at $4.08 per pound, compared to the national average of $4.83. In Westminster, eggs run even higher at $4.35, but potatoes remain slightly cheaper at $4.06 per pound. These regional differences show how grocery costs in Colorado can balance out, even with some fluctuations.
Plan to budget a bit more for your transportation costs in Colorado
Transportation costs in Colorado can vary significantly depending on where you live, but they tend to be on the higher side, particularly in urban areas. In cities like Denver and Boulder, residents often face higher gas prices, parking fees, and vehicle maintenance costs due to the state’s rugged terrain and frequent snowstorms. The average cost of gas in Colorado is typically above the national average, and winter weather can lead to increased costs for snow tires or all-wheel drive vehicles, which are popular due to the mountainous conditions.
For those relying on public transit, Denver’s RTD system offers light rail and bus services throughout the metro area, with monthly passes costing around $114. However, in smaller cities like Pueblo or Colorado Springs, public transit options are more limited, which means residents may depend more on personal vehicles, adding to overall transportation costs. Commuters traveling through the state’s major highways, like I-25, should also be aware of toll fees that can add up over time. Overall, transportation contributes a notable portion to the cost of living in Colorado, particularly for those who drive daily.
Colorado has a flat income tax rate, but sales tax varies between cities
Colorado has a flat income tax rate of 4.40%, which is relatively low compared to many other states, making it a favorable place for workers and retirees. The state also doesn’t impose any local income taxes, which helps keep the overall tax burden lower. However, sales taxes can add up depending on where you live. On average, combined sales tax rates fall between 5-7% in the U.S. The statewide sales tax in Colorado is 2.9%, but when you factor in local sales taxes, that rate can jump as high as 11.2% in some areas, like urban areas or popular ski destinations. Property taxes, on the other hand, are quite low, with an average effective rate of 0.49%, well below the national average of 0.99%. This mix of lower income and property taxes helps keep the cost of living in Colorado competitive, despite rising housing and transportation costs.
Let’s take a look at how the combined sales tax varies across different cities in Colorado:
| Colorado City | Combined Sales Tax |
| Boulder | 9.05% |
| Centennial | 6.75% |
| Colorado Springs | 8.2% |
| Denver | 8.81% |
| Fort Collins | 8.05% |
| Grand Junction | 8.66% |
| Pueblo | 7.6% |
| Westminster | 8.6% |
| Winter Park | 11.2% |
Healthcare in Colorado costs slightly higher
Healthcare costs in Colorado can vary widely depending on individual needs, insurance plans, and location. On average, healthcare expenses in the state are slightly above the national average, though they can still be affordable compared to other parts of the country. Colorado has a robust healthcare system, with access to top hospitals and specialized care, especially in urban areas like Denver and Boulder. Rural areas may face fewer options and higher costs for certain services. Health insurance premiums, co-pays, and out-of-pocket expenses can add up, but the state offers a variety of plans through the Colorado Health Insurance Exchange, which helps residents find more budget-friendly options based on their income.
In Denver, a typical dentist visit costs about $133.13, higher than the national average of $115.50, while a doctor visit averages $125.53, which is slightly below the national average of $140.46. Prescription medication in Denver averages $225.19, compared to the national average of $243.86. In Westminster, dental care is a bit more affordable, with dentist visits averaging $105.85, and doctor visits coming in at just $100.32, significantly lower than the national average. However, prescription costs in Westminster are higher, averaging $277.56. Overall, while healthcare expenses can vary, Colorado’s system provides options that help residents manage their costs while ensuring access to quality care.
How much do I need to earn to live in Colorado?
The amount needed to live comfortably here is more than many might expect, primarily due to the higher cost of living in Colorado. Based on the average rent of $1,700, the 30% rule suggests that individuals should aim for an annual income of around $68,000 to keep housing costs manageable. This guideline serves as a useful benchmark for budgeting, but actual income requirements can vary widely depending on the specific city.
For example, in Boulder, where the average rent for a one-bedroom apartment reaches $2,170, you’d need an annual income of approximately $86,800 to maintain a comfortable lifestyle. In contrast, Pueblo offers a more budget-friendly option with average rents around $1,400, meaning residents here would need about $56,000 annually to follow the same 30% guideline. Colorado Springs presents a middle ground; with average rent for a 1-bedroom apartment at about $1,450, an income of around $58,000 would be necessary. These examples highlight how the cost of living in Colorado can fluctuate significantly from city to city, making it essential to consider location when deciding how much you need to earn to live in Colorado.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
