Cost of Living in Colorado

Dreaming of calling Colorful Colorado home? Before you make the move, it’s crucial to understand the cost of living in this picturesque state. From housing to groceries, taxes to transportation, we’ve got you covered. In this guide, we’ll break down the numbers and provide insights into how you can manage your budget effectively. So, let’s embark on this journey!

The Average Cost of Living in Colorado

The average cost of living in Colorado is approximately 7% higher than the national average. However, it’s important to note that this can vary significantly depending on the city you choose. Some areas may be 4% below the national average, while others could be as much as 14% higher.

Breaking Down the Categories

1. Housing Costs

Housing is the largest expense for most residents in Colorado. As of February 2022, the median home price in the state was $594,500, which is 51% higher than the national median. Renting a two-bedroom apartment costs around $1,600 monthly, nearly 24% above the national average. Keep in mind, though, that housing costs vary widely across different cities in Colorado. For instance, in Fort Morgan, homes cost around $317,000, significantly lower than the national median.

2. Utilities

Surprisingly, utility costs in Colorado are 2-22% lower than the national average. This is due to the state’s extensive use of renewable energy sources like hydroelectric, wind, solar, and geothermal power. For instance, in Westminster, you’ll pay an average of $102 for total energy, which is $68 cheaper than the national average.

3. Groceries

The cost of groceries in Colorado is similar to the national average, but this can vary based on your city of residence. For example, Westminster is about 11% below the national average, while Grand Junction is 11% above.

4. Transportation

Transportation costs, including gas and car maintenance, are slightly higher in Colorado. In Denver, you can expect to pay about 11% more compared to the rest of the country. Even in cities like Pueblo, considered cheaper by Colorado standards, you’ll still pay about 1% more.

5. Health Care

Health care costs in Colorado range from 12% below the national average in Pueblo to 3% above average in Grand Junction. In Colorado Springs, costs are approximately 1% higher than the national average.

6. Taxes

Colorado has a flat income tax rate of 4.55%, and it also boasts the lowest sales tax rate in the country at 2.9%. However, local-level sales taxes can add up, making Colorado the state with the 16th highest total sales tax.

7. Miscellaneous Goods and Services

This category includes expenses like clothing, restaurant meals, entertainment, and personal care items. Costs in Colorado range from 1% below the national average in Pueblo to 13% above in Denver.

Comparing with Your Current City

To see if you can afford a similar lifestyle in Colorado, try using a Cost of Living Calculator. If Colorado’s cost of living is higher than your current situation, consider adjusting your standard of living, seeking a higher-paying job, or exploring more affordable nearby areas.

Conclusion

Understanding the cost of living in Colorado is crucial for making an informed decision about relocating to this beautiful state. By carefully managing your budget and considering various cities, you can find a comfortable and affordable place to call home in the Rockies. Good luck with your Colorado adventure!