Cost of Living in Denver, CO

Cost of Living in Denver, CO: A Detailed Overview

The numbers paint a clear picture of daily life in Denver, CO: a cost of living index of 116.3, a median household income of $72,661, and a population of approximately 715,522. That index figure is the headline — at 16.3 points above the national baseline of 100, it means residents pay roughly 16.3 percent more than the average American for a standard basket of goods and services spanning housing, food, transportation, and healthcare. Positioned in the West Coast, Denver is a large city whose economic profile reflects both regional trends and its own local dynamics. The income picture adds context: the local median of $72,661 lands $1,919 below the national median of $74,580. Taken together, the figures highlight why prospective residents should model their personal budgets carefully before committing to a move.

Housing Costs in Denver

Compared to the national benchmarks, Denver's housing market tells a nuanced story. Median rent is $1,700 versus the U.S. median of $1,372 — a gap of $328. Median home prices land at $550,000 against a national figure of $412,300, a difference of $137,700. Both metrics run above national norms, underscoring that housing here carries a premium whether renting or buying. A one-bedroom rents for about $1,500, while two-bedroom options average $2,000. At 20 percent down, financing a median-priced home means borrowing roughly $440,000. Housing commands approximately 35 percent of the average household's total spending, and the 28.1 percent rent-to-income ratio stays inside the 30 percent safety zone that most financial planners endorse.

Monthly Expenses and Budget Breakdown

Breaking down the monthly budget in Denver reveals where money actually goes. Groceries claim $380 per month for a typical household — a figure that undercuts the national average and contributes to the area's overall value proposition. Utilities, including electricity, gas, water, and internet service, total approximately $140. Transportation expenses — gas, car insurance, maintenance, and any public transit — average $115 monthly. Healthcare, encompassing premiums, copays, and out-of-pocket costs, comes to $460 per month, which is above the national average of $450 and worth factoring into any relocation budget. Entertainment and dining account for $165, and families with children should budget $1,300 for daycare or after-school programs. All told, the estimated monthly total is $4,820 versus the national benchmark of $4,357. The dominant categories are housing at $1,700 and childcare at $1,300.

How Denver Compares to the National Average

With a cost of living index of 116.3, Denver commands a premium over the national average. A household spending $4,357 elsewhere would need about $4,820 here — an extra $463 per month, or roughly $5,556 over a year. The higher costs center on housing, which reflects the city's strong demand in a large urban market. Prospective residents should ensure their income comfortably exceeds these baseline expenses before committing to a move.

Denver for Different Lifestyles

Families: The key financial data points for families are childcare at $1,300 per month, the rent-to-income ratio of 28.1 percent, and total monthly expenses of approximately $4,820. The numbers indicate that a family earning the local median can cover essentials while preserving capacity for saving and investing.

Young professionals and singles: A single earner in Denver faces a one-bedroom rent of $1,500 and entertainment costs averaging $165. Above the national one-bedroom median of $1,190, which means that salary negotiation, side income, or shared-living arrangements become important levers for maintaining a healthy savings rate.

Is Denver, CO Right for You?

Ready to evaluate Denver for your next move? Start with the numbers: a cost of living index of 116.3, median rent of $1,700, a median home price of $550,000, and monthly expenses totaling roughly $4,820. Next, run those figures through our comparison calculator alongside your current city or any other candidate. Then zero in on the categories that matter most to your household — childcare for growing families, entertainment for social life, transportation for commuters — and compare those line items directly. Finally, visit in person to confirm that the data matches the lived experience. Numbers lay the groundwork, but the strongest decisions layer in firsthand observation and honest self-assessment.