Thinking about moving to Denver, Colorado? Or perhaps you’re already living here and wondering how far your money would go somewhere else?

It’s a question many people are asking, especially with the rising cost of housing and everyday expenses.

Denver has a lot going for it: beautiful mountain views, outdoor recreation, plenty of sunshine, an active lifestyle, and a strong variety of neighborhoods. But how does the cost of living compare to other popular cities across the country?

Let’s take a closer look.

How Expensive Is Denver Compared to the National Average?

According to current cost-of-living estimates from Redfin, Denver’s overall cost of living is approximately 9% higher than the national average.

Housing is one of the biggest reasons. Housing costs are approximately 19% higher than the national average.

However, not everything costs more. Denver residents can benefit from lower-than-average utility and transportation costs.

That means the cost of living isn’t just about the price of a house. It’s about the entire monthly budget.

Denver vs. Other Popular Cities

Many people considering a move to Colorado are also comparing Denver with other popular destinations.

Here’s an interesting look at several comparisons:

Denver vs. Austin, Texas

Austin is approximately 12% less expensive overall than Denver, according to Redfin’s comparison. Housing is also less expensive in Austin, although utility costs can be higher.

Denver vs. Phoenix, Arizona

Phoenix can offer lower housing and rental costs than Denver. However, summer electricity bills and air-conditioning expenses are important considerations.

Denver vs. Seattle, Washington

Seattle generally has higher housing costs than Denver. For someone relocating from the Seattle area, Denver may offer an opportunity to find a more affordable home.

Denver vs. Chicago, Illinois

Chicago offers some more affordable home-buying opportunities, depending on the neighborhood. However, property taxes, transportation, and winter weather are additional considerations.

Denver vs. Los Angeles, California

For people relocating from Los Angeles, Denver may offer a more affordable housing alternative, although the savings depend on the neighborhood and type of home you’re looking for.

What Does It Actually Cost to Live in Denver?

When comparing cities, don’t just look at home prices. Consider these expenses:

• Housing: Mortgage payments, rent, property taxes, homeowners insurance and HOA fees.
• Utilities: Electricity, gas, water, trash and internet.
• Transportation: Car payments, insurance, gas, parking and commuting expenses.
• Groceries: Everyday food and household purchases.
• Healthcare: Insurance premiums, deductibles and medical expenses.
• Lifestyle: Restaurants, entertainment, recreation and travel.

One thing I always encourage buyers to do is calculate the entire monthly cost of homeownership before deciding what they can afford.

A home that looks affordable based on its purchase price may have additional expenses that affect your budget.

Is Denver Worth the Higher Cost of Living?

That really depends on what you value.

For many people, the attraction of Colorado goes beyond housing prices.

You have access to hiking, skiing, biking, beautiful parks, outdoor activities and the Rocky Mountains. Denver also offers a variety of neighborhoods, restaurants, entertainment and cultural attractions.

For some buyers, those lifestyle benefits make the additional expense worthwhile.

Others may decide that a more affordable city better fits their financial goals.

There is no one-size-fits-all answer.

Can You Still Find an Affordable Home in the Denver Area?

Absolutely!

One of the biggest mistakes buyers make is assuming they need to live in the most expensive neighborhoods to enjoy everything the Denver area offers.

There are many communities surrounding Denver that provide different price points, housing styles and lifestyles.

Depending on your budget, it may be worth exploring areas such as Englewood, Littleton, Arvada, Aurora and other surrounding communities.

The important thing is finding the right combination of location, affordability and lifestyle.

Final Thoughts: Is Moving to Denver Worth It?

Denver isn’t the cheapest place to live, but it isn’t among the most expensive major cities in the country either.

The key is understanding what you’re getting for your money and making sure the cost of living fits your financial goals.

If you’re considering relocating to Colorado, buying your first home, or moving to a different neighborhood, having someone who understands the local real estate market can make a big difference.

After more than 29 years in real estate, I’ve helped buyers navigate different markets, neighborhoods and price points.

Thinking about buying a home in the Denver area?

I’d be happy to help you explore your options and find a home that fits your budget and lifestyle.

Sue Monroe
RE/MAX Leaders
Over 29 Years of Real Estate Experience
303-717-7349
www.suemonroe.com

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