How Much Does It Cost to Live in Denver?

For years, Denver has enjoyed a reputation as one of the best places to live in the United States and rightly so. The Mile High City—nicknamed for its 5,280-foot elevation—boasts high paying jobs at top companies like Facebook and Microsoft, more than 150 breweries and tap rooms in its metro area and a emerging food scene. Since it is located at the base of the Rocky Mountains, Denver is also a short drive from hiking in the summer and skiing in the winter.

However, you will pay a premium to live here. Denver housing prices are 44 percent above the national average, and in general, it costs more to live in this metro areas than in most comparable ones. Still, Denver is one of the few places in the nation where you can enjoy big city life, then an hour later hit the slopes or immerse yourself in nature. For many, it’s worth the cost.

Ready to move? Here’s what you need to know about living in Denver, including what it costs to live there.

Cost of living

According to AreaVibes, Denver has an overall cost of living index score of 116, which is 16 percent above the national average. The cost of living index indicates how expensive (or inexpensive) it is to live in a particular city. If a city’s index score is higher than 100, then the cost of living is above average. If a city’s index score is lower than 100, then the cost of living is below average.

While you’ll pay more for goods, services and transportation in Denver, you’ll pay 5 percent below the national average for groceries and 20 percent below for utilities. The estimated monthly costs for a family of four, not including rent or mortgage, is $3,601.53, according to Numbeo. That’s 4 percent higher than the cost of living in other Colorado cities but 26 percent lower than Los Angeles.

Jobs

Although the unemployment rate in Denver is 6.2 percent, just slightly above the national rate of 5.9 percent, according to the U.S. Bureau of Labor Statistics, the city has a strong job market. The leading industries include aerospace, defense, biotech, healthcare, finance, mining, energy and hospitality. It also has a booming cannabis industry. The Community College of Denver recently launched the state’s first Cannabis Business Degree Program. Additionally, the state just announced it will be opening a new Cannabis Business Office to further encourage cannabis-related entrepreneurship.

Denver has four Fortune 500 Companies: Western Union, Centene, DaVita and Macy’s. Because of the great quality of life in Denver, several national companies have offices here as well. These include Facebook, Lockheed Martin, Microsoft, Dell, Northwestern Mutual, Cisco Systems, Aetna and Xcel Energy. Despite being popular with the tech industry, the city’s largest employers are actually national, state, county and local governments and area school districts.

Salary

The city’s median household income is $75,646, with a typical resident making $47,802, according to the U.S. Census data. Nationally, the median household income is $65,712, but much of the extra $10,000 per household goes towards offsetting the higher cost of living in Denver.

Payscale.com puts the average Denver salary at $71,000 and lists the most popular jobs as software engineer, project manager and operations manager. On average, a software engineer can expect to make on average $83,000 per year in Denver while an operations manager can make anywhere from $45,000 to $126,000.

Real estate

According to Realtor.com, the median listing home price is $535,000, with an average of $341 per square foot. This is substantially higher than the national median home listing price of $293,000. However, compared to Los Angeles, where the median listing home price is $979,000 and the average price per square foot is $577, Denver is still the better option.

There are approximately 318,445 households in Denver’s 78 neighborhoods and 1,152,457 households in the Denver-Aurora-Lakewood metropolitan area, according to the most recent U.S. Census Data. Because home prices have skyrocketed in Denver in the last two years, you will pay quite a bit more than the $1,805 you would have paid in 2019 for monthly home expenses. If you rent today, expect to pay $1,930 in rent per month, according to Apartmentguide.com.

Taxes

The sales tax in Denver is 8.81 percent. It includes a 2.9 percent state sales tax, 4.81 percent city sales tax and a 1.1 percent Regional Transportation District (RTD) tax. There is no county tax. Denver’s sales tax is higher than 95 percent of the other cities in the state. Additionally, Colorado state income tax is 88 percent higher than the national average, according to AreaVibes.

Property taxes in Denver are currently $1 per $1,000 of your home’s assessed value. However, you will be subject to additional taxes if your home is located within a special district, local maintenance district or other taxable district.

Transportation

At 8,414 square miles, Denver covers a reasonably large area. If you live in the suburbs, you will probably want a car. According to Gasbuddy.com, the average price of regular unleaded gas in Denver is $3.50 while the national average is $3.16 (at the time this article was written). Every time you fill up your 20-gallon tank, expect to pay approximately $7 more at the pump than the average American.

You will also spend a fair amount of time driving in Denver. According to the U.S. Census Bureau, the average commute to work in the Denver-Aurora-Lakewood metropolitan area is 27.1 minutes.

Given the price of gas and length of the average commute, public transportation may make more sense than driving yourself. Denver’s Regional Transportation District, more commonly known as the RTD, has more than 170 bus routes that stop at 10,000 bus stops and 12 rail lines covering a total of 113 miles. Tickets cost $3 for a single ride or $6 for a day pass. Monthly passes are $114.

Other reasons to move to Denver

• Denver averages 3,106 hours of sunshine per year, which equals roughly 300 days. Winters are mild with an average daily temperature of 45 degrees Fahrenheit. However, at the height of the summer, the daily temperature average temperature remains a comfortable 86 degrees. Annually, Denver receives only 8 to 15 inches of precipitation.
• Within a one-mile radius in downtown Denver, you’ll find three professional sports stadiums, the country’s second largest performing arts complex, top-rated art and history museums, a U.S. Mint and the country’s only downtown amusement park. There are also more than 11,000 hotel rooms and more than 300 restaurants, brewpubs and music venues.
• The city has more than 150 breweries, brew pubs and tap rooms. It also hosts the annual Great American Beer Festival, the largest beer celebration in the world. At the festival, 6,700 beers are available for tasting.
• With more than 200 parks in the city and 14,000 acres of parks in nearby mountain ranges, Denver has one of the largest city park systems in the nation. It also has more than 850 miles of off-street bike paths and boasts one of the largest urban bike trail systems.
• Denver has an incredible music scene and is the home town of acts like Nathaniel Rateliff, GRiZ and OneRepublic. On any given night, you’ll find local and national artists planning at a variety of venues ranging from the Red Rocks Park and Amphitheatre to stadiums and intimate venues throughout the city.

Ready to move to Denver?

For more information about Denver, check Moving.com’s City Profile Report feature. Simply enter the zip code or the state and city of your potential move. You’ll get a free report with city demographics, real estate information, quality of life factors, and more. For help the best moving company, check Moving.com’s extensive network of reputable and reliable movers.