What Is the Average Cost of Living in Colorado?

The cost of living encompasses the total expenses required to maintain a certain standard of living, including housing, food, transportation, and healthcare. Understanding these financial aspects is important for anyone considering relocation, especially to a popular state like Colorado.

Understanding Major Living Expenses

Major living expenses in Colorado encompass a range of categories, each contributing to the overall financial picture for individuals and households. Housing typically represents the largest portion of these costs, followed by transportation, food, healthcare, and other recurring expenditures. Data from 2024 and 2025 provides these averages across the state.

Housing costs in Colorado vary significantly depending on residence type and size. The average rent for an apartment is $1,878 to $1,994 per month as of June 2025. A one-bedroom apartment costs $1,225 to $1,509 monthly, while two-bedroom units average $1,676. The median home price ranges from $554,708 to $621,800.

Utilities, including electricity, gas, water, and internet, add $237 to $371 to monthly housing costs. The average monthly electricity bill is $98.18, and internet service averages $70 per month.

Transportation expenses are a major cost, with annual costs for a single adult ranging from $4,938 to over $9,000. For a family of four, these costs can range from $9,550 to $17,771 annually. Gas prices in Colorado are around $3.11 to $3.55 per gallon. Public transportation, like Denver’s Regional Transportation District (RTD), offers a $2.75 standard fare per ride, with a monthly pass costing $88. Average annual car insurance premiums are $1,348.30.

Food costs are a significant daily expense. A single adult spends $316 to $410 per month on groceries. For a family of four, monthly grocery bills range from $980 to $1,641. Dining out adds to expenditures, with residents spending an average of $115.91 weekly on meals prepared outside the home.

Healthcare is an important consideration, with average individual health insurance premiums from the marketplace ranging from $380 to $451 per month for unsubsidized plans. The average annual cost for healthcare per person, according to the Bureau of Economic Analysis, is $8,415. Employees with employer-sponsored health insurance pay an average of $1,642 annually for their portion.

Other expenses include taxes. Colorado has a flat individual income tax rate of 4.25% for the 2024 tax year. The state sales tax rate is 2.90%, with the average combined state and local rate reaching 7.81%. Property taxes average 0.45% of a home’s assessed value.

Cost Differences Across Colorado Regions

The “average” cost of living in Colorado presents a broad overview, but actual expenses can vary considerably based on specific geographic regions within the state. This regional disparity is most pronounced in housing costs, reflecting differences in population density, economic drivers, and local demand. High-cost areas feature robust job markets and desirable amenities, while more affordable regions offer a different economic landscape.

Major metropolitan areas like Denver and Boulder are among the state’s highest cost-of-living regions. In Boulder, a one-bedroom apartment can reach $2,170, and the median home price is $970,000. Denver has similar elevated costs, with one-bedroom apartments averaging $2,100 per month and two-bedroom units costing $2,770. Mountain resort towns also have high costs due to popularity and limited housing supply.

Conversely, areas like Colorado Springs and Pueblo offer more budget-friendly living options. In Colorado Springs, the average rent for a one-bedroom apartment is generally between $1,277 and $1,450, and the median home price is around $448,000 to $459,076. Pueblo is one of the more affordable areas, with a median home price of approximately $290,493 to $311,000 and rents around $1,400. These differences are largely driven by housing market dynamics, where demand significantly outpaces supply in more desirable urban and resort locations, pushing prices upward.

While housing shows the largest variations, other expenses also vary regionally. Transportation costs are higher in rural areas due to longer commutes and less public transit, while urban centers have higher public transportation fares. For example, a monthly public transit pass costs $88 in Denver and $30 in Durango. Food prices also differ, with some regions having higher grocery costs. Localized economic conditions and population concentrations influence the affordability of specific Colorado regions.

Colorado’s Costs Compared to the National Average

Comparing Colorado’s cost of living to the national average provides context for potential residents. Overall, Colorado’s cost of living is 7% higher than the national average. This difference is primarily driven by certain categories, while others remain comparable or lower than the national benchmark.

Housing contributes to Colorado’s higher cost of living. Average rent in Colorado is $1,963 per month, compared to the national median of $1,529.01. The median home price in Colorado is $646,000, exceeding the national median of $436,000. This disparity in housing costs drives the state’s overall higher living expenses.

In contrast, utility costs in Colorado are lower than the national average, about 9% less. The average monthly electric bill in Colorado is $98.18, lower than the national average of $135.25. Natural gas prices are $9.75 per thousand cubic feet in Colorado, compared to $13.25 nationally. These lower utility expenses offset some higher costs in other categories.

Transportation expenses in Colorado are 11% higher than the national average. While gas prices are comparable to or slightly below the national average, other transportation costs contribute to this increase. For example, average car insurance premiums in Colorado are $1,348.30 annually, compared to the national average of $1,189.50. Vehicle ownership and usage are more expensive in Colorado.

Food costs, particularly groceries, are typically comparable to the national average, though some variations exist. Healthcare expenses also present a mixed picture; while average marketplace health insurance premiums in Colorado are slightly lower at $451 per month compared to the national average of $477, overall annual healthcare costs can be substantial. This comparison highlights that while some expenses are more affordable, the cumulative effect of higher housing and transportation costs positions Colorado as a more expensive state.