What Is the Cost of Living in Colorado Springs?

The cost of living encompasses the cumulative expenses associated with maintaining a certain standard of living within a particular geographic area. It considers the prices of various goods and services, indicating the financial resources required for daily life. Evaluating these costs is crucial for individuals and families to assess affordability and budget effectively.

Housing Expenses

Housing represents a significant portion of living expenses in Colorado Springs, influenced by both rental and homeownership markets. Average rental costs vary depending on the property size and type. For instance, a one-bedroom apartment averages around $1,277 to $1,318 per month, while a two-bedroom apartment typically ranges from $1,500 to $1,609 monthly. Single-family homes command higher rents, averaging approximately $2,100 to $2,295 per month.

For those considering homeownership, the median home price in Colorado Springs is around $557,240 to $571,376. Related expenses include property taxes and homeowners insurance.

Homeowners insurance premiums in Colorado Springs average around $2,984 per year for a policy with $300,000 in dwelling coverage, which is higher than the state and national averages. This cost can rise to $4,374 annually for homes with $500,000 in dwelling coverage. Homeowners association (HOA) fees, if applicable, also contribute to monthly housing costs, though specific average amounts for Colorado Springs were not immediately available.

Essential Household Outlays

Utility costs, encompassing electricity, natural gas, water, and internet services, average around $273.33 for a 915-square-foot apartment. Colorado Springs Utilities, which provides these services, has projected a 5.6% increase in average household bills for 2025, adding approximately $14 per month. Internet services specifically can add about $70.62 to monthly utility expenses for 60 Mbps or more with unlimited data.

Grocery prices in Colorado Springs are approximately 2% to 3% higher than the national average. While specific weekly or monthly averages for individuals and families can vary widely based on dietary habits, a typical traveler in Colorado Springs budgets around $95 per day for food.

Costs for a single adult without children are estimated at about $10,313 annually. Gas prices in Colorado Springs are around $3.04 per gallon. Public transportation is available through Mountain Metropolitan Transit, with adult fares costing $1.75 per ride. Average car insurance premiums in Colorado Springs range from $2,109 to $2,349 annually for full coverage, which is generally higher than the Colorado state average.

Healthcare and Personal Care Costs

Healthcare and personal care expenses also form a part of the cost of living. Healthcare costs in Colorado Springs are about 4% lower than the U.S. average. For those with employer-sponsored health insurance, the average annual employee contribution in Colorado is $1,642, with employers covering the majority of the total premium. Routine doctor visits and prescription medication costs can vary significantly based on insurance coverage and individual health requirements.

Personal care services and products also factor into monthly budgets. For example, a haircut in Colorado Springs typically costs around $34.02. While specific average costs for gym memberships or common over-the-counter personal care products were not readily available, these expenses contribute to the overall personal well-being budget.

Local Tax Landscape

The local tax landscape in Colorado Springs directly impacts residents’ financial obligations. Colorado has a state sales tax rate of 2.9%, which is among the lowest in the country for states with a sales tax. However, combined with local sales taxes, the average combined sales tax rate in Colorado is about 7.81%, and can reach up to 8.3% in some municipalities.

Property taxes in Colorado are calculated based on the actual value of the property, the assessment rate, and the mill levy. For 2025, the residential assessment rate for local government is 6.25% and for schools is 7.05%. This assessment rate is applied to the property’s actual value to determine the assessed value, which is then multiplied by the local mill levy to derive the tax owed. Colorado generally has low residential property taxes, with an average effective rate of 0.49% of a home’s assessed value.

Colorado levies a flat state income tax rate. For 2025, the individual income tax rate is 4.0%.

Interpreting Cost of Living Data

Cost of living data is often presented using an index, comparing a city’s expenses to a national average, typically set at 100. Colorado Springs’ cost of living is approximately 2% to 11% higher than the national average, depending on the source, and around 1% to 10% lower than the Colorado state average. Housing expenses are generally higher than the national average, while utilities and transportation can be lower.

These figures represent averages, and individual costs can vary significantly based on numerous factors. Lifestyle choices, such as dining out frequently or owning multiple vehicles, directly impact personal spending. The specific neighborhood within Colorado Springs, property type, and consumption habits for groceries and utilities also influence actual expenses. Understanding these averages provides a valuable starting point for budgeting and relocation planning, but personal circumstances will ultimately determine an individual’s specific cost of living.