Cost of Living in Denver: What You'll Actually Spend

If you're considering a move to Denver, the cost of living is probably one of your top questions — and most of the answers you'll find online are national averages that don't survive contact with an actual house hunt. I work with relocating buyers here often, so here's the realistic breakdown of what you'll actually spend, including the part that matters most: how much the answer changes from one neighborhood to the next.

Housing: The Biggest Line Item

Housing is by far the largest expense in Denver and the one that varies the most depending on where you live. Denver home prices vary significantly by neighborhood — from the $400s in parts of Lakewood to $2M+ in Cherry Creek — so metro-wide averages don't tell you much on their own.

Here's a more useful breakdown by area:

• Most affordable: Southwest Denver, Wheat Ridge, Littleton, parts of Lakewood and Arvada — homes in the $400s–$600s+
• Mid-range: Sunnyside, Regis, Edgewater, and North Park Hill — homes in the $600s–$900s+
• Premium: Berkeley, Highlands, LoHi, Sloan's Lake, Wash Park, Platt Park — $800s–$1.5M+
• Luxury: Cherry Creek, Hilltop, South Park Hill, Golden (mountain properties) — $1.5M+

Renters should expect to pay $1,500–$2,200/month for a one-bedroom apartment in the city, with two-bedrooms ranging from $1,800–$2,800+ depending on the neighborhood.

Groceries and Dining

Grocery costs in Denver are close to the national average. Colorado doesn't tax groceries at the state level, which helps. King Soopers (Kroger), Safeway, Whole Foods, Trader Joe's, and Sprouts are all widely available.

Dining out is a significant part of Denver culture, and the restaurant scene has exploded. Expect to pay $15–$25 for a casual lunch and $30–$60 per person for a nice dinner (before drinks). Denver also has a thriving craft brewery and independent coffee shop scene.

Transportation

Most Denver residents drive. Gas prices tend to run slightly below the national average. If you live near a light rail line (RTD), a monthly pass is available — check rtd-denver.com for current fares.

Denver is increasingly bike-able, especially in NW Denver and central neighborhoods. Many residents commute by bike from April through October, and protected bike lanes are expanding.

Taxes

Colorado has a flat state income tax — 4.4% is the baseline rate, though TABOR surpluses have occasionally trimmed it for a given tax year. Denver's combined sales tax (state, city, and special districts) is 9.15% as of 2025, after voters approved a city rate increase. Property taxes are relatively low compared to most states — I cover how they actually work in a separate post.

Healthcare

Healthcare costs in Denver are slightly above the national average. The city has excellent hospital systems — UCHealth, Denver Health, and Intermountain Health among them — and access to specialists is generally good. Health insurance premiums through the Colorado marketplace vary by plan but are comparable to other mid-size metros.

Utilities

Average monthly utilities (electricity, gas, water, trash) run about $150–$250 for a typical home. Internet averages $60–$100/month. The dry climate means lower cooling costs in summer but moderate heating costs in winter.

How Denver Compares to Other Cities

National cost-of-living indices consistently place Denver above the national average — typically in the 10–15% range — driven primarily by housing. Directionally, compared to:

• San Francisco: Denver is substantially less expensive overall
• New York City: Denver is substantially less expensive
• Austin, TX: Denver is comparable, sometimes slightly higher on housing
• Phoenix, AZ: Denver is approximately 10–15% more expensive
• Chicago, IL: Denver is comparable, with higher housing but lower taxes

The Bottom Line

Denver isn't the affordable frontier town it once was, but for what you get — sunshine, outdoor access, a strong job market, and a thriving food and culture scene — most people find the cost of living in Denver reasonable, especially compared to coastal alternatives. The key is choosing the right neighborhood for your budget.

Here's the thing about every number in this post: the metro average is not your number. What $650K buys in Berkeley and what it buys in Lakewood are two different lives, and the only version of this math that matters is the one built around your budget and your non-negotiables. Want me to run it for your situation? It's a 15-minute conversation — reach out here, or call or text 720.780.9519.