If you’re considering a move to Denver, Colorado, one of the first questions on your mind is likely: Can I afford to live in Denver? This beautiful city is known for its stunning mountain views, thriving job market, and outdoor lifestyle and has become one of the most desirable cities in the United States.
However, with its popularity, the Denver cost of living has also risen, placing it among the pricier major cities in the country. As such, the cost of living in Denver Colorado is on the higher end.
In this guide, we’ll break down the costs associated with living in the Mile High City, from housing costs and food costs to transportation and other essentials, so you can decide if it’s possible to live comfortably within your budget. Here’s everything you need to know about the Denver cost of living.
Denver Cost of Living Index
What is the cost of living in Denver Colorado? Is Denver expensive? One of the best ways to answer this question is to take a look at the Denver Cost of Living Index. The Cost of Living Index (COLI) is used to compare the cost of goods and services in major cities across the United States to the national average. The national average is set at 100.
The Denver Cost of Living Index is 110.3. This means that the cost of living in Denver Colorado is 10.3% more expensive than the national average of 100. While the Denver cost of living is more expensive than the national average, it is more affordable than the Colorado average of 120.5. There are several other more expensive cities in Colorado, including Glenwood Springs and the city of Boulder.
Consumer Price Index (CPI)
How much does it cost to live in Denver? Another good way to answer this question is to check out the Consumer Price Index. This monthly report is published by the Bureau of Labor Statistics and reports the changes in prices consumers pay in a city.
The rising Denver cost of living is reflected in the latest Consumer Price Index report. Over the past year, the Consumer Price Index in Denver has risen by 1.4%. The biggest contributors to the rise in the Denver cost of living are food and all items less food and energy. Lower prices for gasoline and natural gas led to an 8.7% fall in energy prices.
Over the past few months, the overall Denver cost of living has gone down, which could lead to a lower Consumer Price Index in 2025.
Consumer Expenditure Survey
The Denver cost of living can also be explored with the Consumer Expenditure Survey. This survey is also conducted by the Census Bureau and provides a breakdown of what people in the city are spending their money on. The latest survey reports that residents of Denver Colorado spent an average of $84,293 during the 2021-22 calendar year. The national average is $70,052.
Here’s how the Denver cost of living breaks down:
- Housing: 36.7% of yearly budget
- Transportation: 15.4% of yearly budget
- Personal insurance and pensions: 12.9% of yearly budget
- Food: 11.7% of yearly budget
- Healthcare: 7.7% of yearly budget
- Entertainment: 4.9% of yearly budget
- Education: 2.2% of yearly budget
- Apparel and services: 2.1% of yearly budget
When comparing the Denver cost of living to the national average, housing, personal insurance and pensions, and education are all more expensive. Transportation, food, healthcare, entertainment, and apparel and services are all less than the national average.
Family Budget in Denver
How much does it cost to live comfortably in the city? According to the Economic Policy Institute, a family of four in Denver would need to earn $127,095 per year to live comfortably in Denver Colorado. This comes out to about $10,591 per month.
This number is only a rough estimate, and your specific Denver cost of living could be higher or lower depending on your lifestyle and needs. Transportation costs may go down if you can walk or take public transportation. Food costs may be lower if you cook at home more often. As one of the most major cities in the western United States, some high prices are unavoidable, while others can be lowered with a bit of practice.
Cost of Household Items, Utilities, Gas & Groceries in Denver
Is Denver affordable? To answer this question, let’s look at your everyday expenses in the city. This includes transportation costs, food costs, and more. The final cost of living in Denver Colorado often depends on these smaller transactions that add up in the long run.
- Steak (1lb): $7.57
- Milk (1 gallon): $3.99
- Eggs (1 dozen): $4.32
- Potatoes (5 lbs): $6.85
- Bread (1 loaf): $3.57
- Beer (1 bottle): $8.00
- Movie ticket: $15.00
- McDonald’s meal: $12.00
- Average cell phone bill: $65.11
- Gas (1 gallon): $3.37
- Average cost of utilities in Denver: $195.70
Source: Numbeo
The Denver cost of living can be impacted greatly by transportation costs. According to CarInsurance.com, the average cost of car insurance in Denver is about $51 per month. You can lower your Denver cost of living by opting to use the RTD-Denver public transportation system.
Denver Real Estate Market
Are you thinking about searching for Denver homes for sale? Housing costs greatly impact the Denver cost of living. According to Redfin, the Denver average home price is $570,000. The average home price in Denver Colorado is up 0.9% compared to last year, and homes are sitting on the market for an average of 31 days. The median home price in Denver is above the national average of $428,000 but below the Colorado average of $616,000.
How does the average home price in Denver Colorado stack up against other Colorado cities? Here’s a quick comparison of housing costs in other popular cities.
- Glenwood Springs: $905,000
- Boulder: $970,000
- Aurora: $470,000
- Colorado Springs: $448,000
As you can see, the Denver housing market falls somewhere in the middle. The cost of living in Denver Colorado also depends on where in the city you’ll be settling down. Some of the more affordable Denver neighborhoods include Capitol Hill, Union Station, and Civic Center. Neighborhoods that will raise your Denver cost of living include Washington Park and Cherry Creek.
Denver Rental Market - Average Rent in Denver
Are you thinking about renting in the city? Rent prices in Denver will greatly influence your Denver cost of living. According to RentCafe, the average Denver rent is $2,010 per month. The average apartment size in Denver is 842 square feet. The average apartment rent in Denver is less than many other Colorado cities, such as Glenwood Springs ($2,070 per month), Boulder ($2,510 per month), Littleton ($2,181 per month), and Fort Collins ($2,049 per month).
The most affordable neighborhoods in Denver are Barnum and Westwood, where renters can expect to pay about $1,347 per month. Neighborhoods that will raise your Denver cost of living include Cherry Creek and Congress Park, which both have an average rent of $2,641.
Are you curious about whether renting or buying in Denver is more affordable? According to the 2022 Rental Affordability Report, it’s more affordable to rent than to buy in Denver. If you want to confirm this claim, then take a look at the city’s price-to-rent ratio. The higher the price-to-rent ratio, the better the city is for renters. The lower the ratio, the better the city is for buyers. Here’s the calculation for the price-to-rent ratio:
Median home price / median annual rent price = price-to-rent ratio
Now, let’s plug the numbers for Denver into this equation.
$570,000 / $24,120 = 23.6
23.6 is a higher price-to-rent ratio, confirming that Denver is more affordable for renters. If you’re wondering whether or not you can afford to rent real estate in the area, then take a look at the National Low Income Housing Coalition’s Out of Reach Report.
According to this report, you would need to earn at least $2,201 per month ($42.33 per hour) to afford a two-bedroom apartment in Denver without spending over 30% of your yearly income on housing. This comes out to about $88,040 per year.
Average Salary & Median Household Income in Denver
The Denver cost of living is greatly impacted by the average salary in Denver and median household income in the city. How much you make from your place of employment reflects how much money you can spend on your everyday expenses. The median household income in Denver is $88,213, which is just slightly below the Colorado average of $89,302. According to Payscale, the average income in Denver Colorado is $81,000 per year.
You’ll be happy to know that Denver’s economy is booming. Because it is the largest city within 500 miles, it has become a major transportation, storage, and distribution hub for the Mountain states, Southwest states, and Western states. Several companies are headquartered in the area, including Antero Resources, Coors Brewing Company, and Arrow Electronics.
The industry you are in will greatly influence your specific Denver cost of living. These are the top 10 most popular industries/careers in Denver, as well as their average salaries:
- Office and administrative support: $53,350
- Sales: $70,680
- Business and financial operations: $95,760
- Food preparation and serving: $39,780
- Transportation and material moving: $54,540
- Management: $163,890
- Computer and mathematical: $119,780
- Healthcare practitioners: $104,190
- Educational instruction and library: $64,240
- Construction and extraction: $62,560
Source: BLS
Income, Sales & Property Taxes in Denver
The Denver cost of living is greatly impacted by taxes you’ll encounter when living in the city. Here’s an overview of the different taxes that will influence the Denver cost of living.
Denver Property Tax Rate
Denver property taxes are handled by The Treasury Division. To find the Denver property tax rate, you’ll need to multiply the property’s assessed value by the Mill Levy. One mill is one-thousandth of a dollar ($1 of tax per $1,000 of assessed value).
Denver Sales Tax Rate
Your Denver cost of living will be influenced by the city’s sales tax rate. Sales tax in Denver is imposed on the sale of goods and services. The Denver sales tax rate is 8.810%.
Colorado Income Tax Rate
The income tax rate in Colorado is 4.4%. The state has a flat income tax, meaning that every resident pays the same regardless of how much they earn in a year.
Denver vs. Las Vegas Cost of Living
Are you considering other major cities to call home? Many people who are considering a move to the western United States also think about calling Las Vegas home. So how does the Las Vegas and Denver cost of living stack up? The Cost of Living Index in Las Vegas is 97.6, which is 2.4% more affordable than the national average and 12.7% more affordable than the Denver average.
Here’s a quick comparison of the Las Vegas vs. Denver cost of living:
- Average monthly expenses: $10,591 in Denver vs. $8,736 in Las Vegas
- Average home price: $570,000 in Denver vs. $451,000 in Las Vegas
- Average rent: $2,010 in Denver vs. $1,472 in Las Vegas
- Average salary: $81,000 in Denver vs. $72,000
As you can see, Las Vegas is more affordable than Denver. However, the average salary in Denver is much higher, so you should still be able to live comfortably in the city. If you choose to live in Denver, then moving from Denver to Las Vegas is always possible in the future.
The cost of living in Denver Colorado is very complex, but can be easy to understand when broken down. Now that you know all about the Denver cost of living, are you ready to relocate? The Denver CO movers at Move 4 Less are ready to handle your relocation. Give our experienced team a call today at (702) 381-1200 to get started with a free quote.
