Cost of Living in Denver Colorado

With its breathtaking scenery and booming job market, it’s no wonder you may be considering a move to the Mile-High City. Denver is, without a doubt, one of the most scenic cities in the Rocky Mountain region. There are numerous outdoor recreation activities, including beautiful hiking trails, popular hot springs, and the nearby mountains. Unfortunately, despite its laid-back vibe, it’s also one of the most expensive. The cost of living in Denver Colorado is much higher than you might expect.

Moving to Denver might still be a good option, especially if you enjoy an outdoor lifestyle. Use a cost of living calculator and talk to a local Realtor to get an idea of what you truly can or can’t afford in this well-liked city.

Cost of Living in Denver Colorado

Depending on which report you read, the cost of living in Denver Colorado can range from 12% to almost 29% above the national average. That’s an extremely broad range, mostly because Denver is a diverse city with housing prices that differ from one neighborhood to another.

For a single person, the average cost of living in Denver Colorado is $2,061 per month. That figure jumps to $4,703 for a family of four. 

Based on these numbers, Denver ranks among the top 4% of the most expensive cities in the world. Globally, it comes in as the 286th most expensive city (out of 9,294). Domestically, it is the 205th most expensive (out of 2,202). 

The Denver lifestyle is attainable, but it definitely has a high price tag.

Quality of Life

One of Denver’s biggest draws for new residents is its abundance of outdoor activities. Not just the city itself, but also the nearby Rocky Mountains, offer numerous recreational amenities. If you’re an outdoor enthusiast, you’ll find a natural fit with the Mile-High City. 

For these reasons, as well as many others, Denver is 73rd on the list of best places to live in the world — in the top 1%! So although the cost of living in Denver Colorado is high, it’s balanced out by how enjoyable life can be. Denver also ranks as the 21st best city to live in the United States. 

Although the cost of living in Denver Colorado is undeniably high, the city is actually quite affordable, due to its higher salaries, with a median household income of $68,592. The median monthly salary in Denver (after taxes) is $4,396. 

Another key factor in Denver’s affordability is the free outdoor amenities. If you take advantage of all that Denver has to offer its residents, you can save hundreds of dollars on entertainment and skip a pricy gym membership.  

Cycling is an integral part of the Denver lifestyle. And with more than 85 miles of bike trails and 300 days of sunshine per year, you’ll have plenty of opportunity to go out for a ride. If you prefer watersports, there are plenty of opportunities for kayaking in Confluence Park, just a few minutes from downtown. And one cool thing for the runners/walkers: City Park has a 5k (3.1 mile) trail located at its 5280 contour line. You’ll be working out at exactly one mile high!

The median price of a home in Denver is a high $426,200. This is much higher than the average for the state of Colorado, which is $384,000. Denver home prices are also 84% higher than the national median of $231,200. If you are thinking of buying a home in Denver, make sure you work with a professional real estate agent to find a house you love within your budget. 

Rental prices in Denver are not much lower. The average rent for an apartment is $1,548, which is more than 30% higher than the national average rent of $1,101. 

Utilities in Denver, on the other hand, are more affordable. The average monthly bill is just $156.76, which is 6% lower than the national average. This is especially surprising given Denver’s cold weather, which does push up heating costs during the winter months.

Owning a car is not a necessity in Denver, with easily accessible public transportation. A monthly pass for local transportation is just $114. If you need regional transit or travel to the airport often, you can upgrade your pass and pay $200 per month.

If you prefer owning a car, you can expect to pay $4,900 per year on car payments, insurance, gasoline, and maintenance. For families with two working adults and one child, that price more than doubles to $11,186. 

Gas prices in Denver are about 6% lower than the national average. And that’s a good thing, because the average daily commute in Denver is over 35 minutes. That number skyrockets during the winter (and sometimes even spring), when snow and icy roads can double the time it takes the average commuter. 

One of the few areas where you can save money in Denver is food, where the average grocery bill is 2% lower than national prices. For an average adult living alone, if you eat all of your meals at home, you’d spend about $3,792 per year on food. 

Some average food prices:

If you prefer to eat out, it’s an affordable option in Denver. The average dinner meal for one person is $15.00. For two people, with appetizers and dessert, the cost is $66.23. 

The entertainment options in Denver are also affordable, with movie tickets costing just $12.50 and a monthly gym membership $43. 

However, the free entertainment options in Denver are practically limitless! Aside from the many outdoor amenities, Denver also has free attractions and events such as the Colorado Music Hall of Fame, Red Rocks Amphitheater, and City Park Summer Jazz Series. 

If you are a sports fan, you might want to pay a little extra and see your home team in action. Denver has professional teams for baseball, basketball, football, hockey, lacrosse, and soccer. 

Denver’s healthcare costs average roughly 6% above the national average, as does most of the state of Colorado. The average visit to a doctor will cost $116.58. A visit to the dentist averages $100.15. And if you need medicine, the average prescription drug costs $464.37.

Be prepared to pay taxes if you move to Denver — federal, state, and city. The state tax in Colorado is 4.63% of your salary, regardless of your income. In addition, Denver charges a monthly flat $5.75 to residents who earn over $500 a month.

There is also a sales tax in Denver of 7.65%. 

Finding Your Dream Home in Denver

Denver might not be an inexpensive city, but with its gorgeous open spaces and high quality of life, it’s certainly worth considering. If you don’t have a local Realtor yet, UpNest’s free service will help you find one! You’ll receive proposals from 3 to 5 top local agents, so you can find just the right one for you. You’ll be on your way to the Mile High City in no time!

UpNest is a no-cost service for home sellers and buyers to find the best real estate agents locally. The UpNest platform allows you to compare multiple agents in your area so you can compare reviews, commission rates, previous sales, and more.

Our agents have been carefully vetted and often offer competitive, lower than average commission rates to UpNest customers. There is no obligation to sign up with one of our Realtors, but when you can potentially save thousands on commission – why wouldn’t you? If you’re ready to get started, just enter your zipcode below!

Yes. Denver can be affordable (compared to metros like New York City), but rapidly increasing rental prices and fast-selling homes say otherwise. While living in Denver is much more affordable than living in places like Los Angeles, it’s still relatively pricey.

The median income in Denver is slightly under $39,000. Most residents need to make about $110,000 to comfortably own a home or a little over $100,000 to rent. The city has one of the largest gaps between median income and income needed to live comfortably.