How Much Does It Cost to Live in Colorado?

The cost of living covers essential expenditures like housing, food, transportation, and healthcare. For those considering Colorado residency, understanding these financial aspects is key. This article details major expenses, regional variations, and how income levels influence affordability within the state.

Major Living Expenses

Housing is a significant expense in Colorado, with costs varying by property type and size. The median rent across all property types was approximately $2,250 as of May 2024. Average apartment rent ranges from $1,878 to $2,281, with one-bedroom units typically $1,225-$1,509 and two-bedroom units averaging $1,676 monthly. The median home sale price reached $621,800 in April 2024, reflecting a competitive market where nearly 30% of homes sold above list price. Property taxes are among the lowest nationally, with an average effective rate of 0.49%, calculated based on the property’s market value.

Transportation costs are a substantial expense, with annual expenditures ranging from approximately $9,000 for a single adult to over $17,000 for families, including vehicle ownership expenses like fuel, insurance, and maintenance. Gasoline averaged around $3.60 per gallon in 2025, contributing to an estimated annual fuel cost of $1,728. Annual car insurance premiums average about $2,200 to $2,337, while routine vehicle maintenance and repairs typically cost between $500 and $900 annually. Vehicle registration fees can range from $50 to $150 per year, with an additional ownership tax of $300 to $600 in the first year for newer vehicles. Public transportation options are available in urban centers, though statewide average fares are not widely detailed.

Food expenses are a considerable part of the overall cost of living. A single person can expect to spend about $316 to $342 per month on groceries. For a family of four, the estimated monthly grocery bill ranges from $1,366 to $1,641. These figures primarily cover non-restaurant food purchases, with dining out adding to the overall food budget.

Utility costs in Colorado average between $237 and $371 per month. This monthly average typically covers electricity, natural gas, water, internet, and trash services. These costs can vary significantly based on household size and usage. Given Colorado’s climate, heating costs, particularly in colder months, can impact overall utility expenses.

Healthcare is a necessary expense, with average annual costs estimated at $8,415 per person. For individual health plans purchased through the marketplace, the average monthly premium is approximately $451. Employee-sponsored health insurance averages around $702 per month. Out-of-pocket expenses, such as doctor visit co-pays and prescription costs, can vary widely depending on the insurance plan and individual health needs.

Beyond these primary categories, miscellaneous expenses contribute to the overall cost of living. These include personal care items, entertainment activities, and clothing. While specific average figures for these categories are less consistently reported, they are important for a complete financial picture.

Regional Cost Variations

The cost of living in Colorado is not uniform across the state, with significant differences based on geographic location. Major urban centers generally present higher costs compared to the state average, driven primarily by elevated housing prices. For example, Denver, the state’s capital, has a cost of living index 13.5% higher than the national average. In Denver, the median home price was approximately $579,019 in May 2024, and average rent for a one-bedroom apartment was $1,266. These figures are notably higher than in other parts of the state.

Boulder, another prominent urban center, is considerably more expensive, with a cost of living index 41.3% above the national average. The average home price in Boulder was around $932,500, and average rent was $2,534, making it one of the priciest areas. Colorado Springs offers a comparatively lower cost of living than Denver or Boulder, with a median home price of $459,076 and average one-bedroom rent at $1,277. These variations highlight how proximity to major employment hubs and popular amenities influences local market dynamics.

Suburban areas surrounding major cities often provide a slightly more affordable option than the urban core, yet still remain above rural averages. These communities balance accessibility to city amenities with potentially lower housing costs. For instance, cities like Aurora or Lakewood, while part of the broader Denver metropolitan area, may offer relatively more accessible home prices and rental rates compared to central Denver.

Rural areas and smaller towns in Colorado generally feature lower costs of living, particularly for housing. Pueblo, for example, is recognized for having some of the most affordable housing in the state, with apartments available from $799 per month and a median home price of $290,493. However, certain mountain resort towns, such as Aspen, deviate from this trend significantly. These areas often have unique economic structures where limited housing supply and high demand from tourism and second-home ownership drive housing costs to exceptionally high levels, sometimes surpassing those in major metropolitan areas. Services and goods in remote or resort locations can also be more expensive due to transportation and limited competition.

Income and Affordability

Understanding the median income levels in Colorado provides context for assessing overall affordability within the state. The median household income in Colorado was $92,470 in 2023, while the average household income stood at $124,231. For individuals, the per capita income was $50,489 between 2019 and 2023. These figures offer a general benchmark against the cost of living expenses previously outlined.

When relating these income figures to the cost of living, it becomes apparent that a comfortable standard of living in Colorado often necessitates a higher income than the national average. Financial guidelines suggest that a single person might need an income of around $80,000 annually to comfortably cover expenses, while a family of four could require $150,000 or more. This indicates that while Colorado’s income levels are generally higher than the national average, the elevated cost of living demands a substantial income to afford housing, transportation, food, and other necessities without financial strain.

Colorado’s diverse economy, driven by industries such as technology, tourism, and aerospace, plays a role in influencing salary ranges across different sectors. The presence of high-paying tech jobs in metropolitan areas, for instance, can contribute to higher average incomes in those regions, which in turn impacts the housing market and overall cost of living. Conversely, areas reliant on lower-wage service industries might experience greater affordability challenges despite having lower overall costs. The interplay between prevailing industry wages and regional expenses ultimately shapes the financial reality for residents across the state.