What Is the Average Cost of Living in Colorado in 2025?

Considering a move to Colorado? With its diverse economy, stunning mountain landscapes, and vibrant metro hubs like Denver and Boulder, Colorado attracts many seeking both opportunity and lifestyle.

In 2025, the average cost of living in Colorado is about 14% above the national average, mostly due to housing expenses. Therefore, it is important to understand what to expect across housing, utilities, groceries, and more in Colorado’s unique regions.

Understanding Colorado’s Average Cost of Living

To live comfortably in Colorado’s major areas, a household typically needs a median income of about $106,500 annually. This income supports a middle-class lifestyle in places like Denver, Colorado Springs, and Fort Collins.

Key monthly expenses to consider include:

• Housing: Rent averages around $1,964, and a median home price near $541,198
• Utilities: These costs are about 14% lower than the national average, saving money each month
• Groceries: Weekly spending on food is close to $280, slightly above the national average and similar to Utah
• Transportation: Costs are moderate, with some recent policy changes helping reduce commuting expenses
• Healthcare: Monthly premiums range from $380 to $405, a bit cheaper than California but more expensive than neighboring states
• Childcare: Fees average over $175 per child per month, higher than in nearby states, but improving with new laws

Housing and Rental Market in Colorado

Colorado’s housing market is the biggest factor influencing the state’s average cost of living. As a result, it plays a major role in shaping many residents’ monthly budgets.

Currently, the median rent is $1,964. Meanwhile, the median home price is about $541,198.

Compared to regional peers:

1. Rent is roughly 15% higher than Utah’s ($1,700) and 20% more than New Mexico’s ($1,637).
2. Home prices are about 15% lower than California’s median of $858,834.
3. Texas offers a much lower median home price of $319,383—60% less than Colorado.
4. Utah and New Mexico have median home prices 10% and 35% below Colorado’s, respectively.

Within Colorado, housing markets differ by metro area:

• Denver: Competitive and pricier due to demand and job growth
• Colorado Springs and Fort Collins: Slightly more affordable but rising quickly
• Boulder: Premium pricing driven by tech growth and university presence

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Utilities and Other Living Expenses in Colorado

Utility costs in Colorado are notably lower than the national average, at about 14% less. This advantage makes a difference in monthly budgets. Among utilities, electricity and heating represent the largest expenses.

Here’s how Colorado’s utilities compare regionally:

• Cheaper than California’s high utility rates
• Similar to or slightly above costs in Texas and Utah

Groceries and transportation also contribute notably:

• Weekly grocery costs are $279.98, close to Utah but higher than New Mexico and Texas.
• Fuel prices are reasonable, and recent policies aim to reduce commuting costs.
• Public transit costs are competitive regionally, though higher than in Texas.

Healthcare expenses include:

• Insurance premiums around $380–$405 monthly
• Moderate out-of-pocket costs, supported by state subsidies

Income and Job Market in Colorado

The median household income needed to maintain a comfortable lifestyle is about $106,500 annually. This income requirement is higher than in Utah and New Mexico but below California’s benchmark of $120,000+.

Colorado’s growing cities like Denver, offer diverse job opportunities in tech, healthcare, and energy. Still, growing demand influences living costs.

Is the Average Cost of Living in Colorado Worth It?

Despite moderate expenses, Colorado balances costs with a high quality of life.

• It offers mountain scenery and outdoor activities that are hard to match.
• Ongoing investments improve infrastructure and utilities.
• A vibrant cultural scene and strong job market add to the appeal.

Therefore, if you value amenities and lifestyle over just the cheapest cost, Colorado is a smart choice.

Regional Insights

Newcomers should focus on key economic hubs such as Denver, Boulder, and Colorado Springs. Denver, while pricier, offers more jobs and amenities. Suburbs provide more affordable housing but less vibrancy.

Smaller cities offer quieter lifestyles and some cost savings, though fewer urban perks. Knowing local market conditions is key to a smooth relocation.

Final Thought on Colorado’s Average Cost of Living

In 2025, Colorado is moderately expensive, mainly due to housing. Compared to nearby states, it is pricier than Utah, New Mexico, and Texas but cheaper than California. Lower utility costs and solid healthcare offerings soften some housing expense pressures.

Overall, Colorado attracts those who want a balance of economy and lifestyle over purely low costs.

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