The Cost of Living in Colorado

Home to the magnificent Rocky Mountains, the beautiful state of Colorado is one of the fastest growing states in the country. In fact, according to U.S. News, the Centennial State grew at a rate of 1.19 percent over the last year, making it the eighth fastest growing state in the nation. With its spectacular ski slopes, strong job market and scenic surroundings, it’s easy to see why so many people are moving to Colorado. So, how affordable is it to live in Colorado’s winter wonderland? Like any state, the cost of living in Colorado varies depending on the city. However, the overall cost of living does tend to be slightly higher than the national average in many of Colorado’s most popular cities.

As far as state income tax is concerned, Colorado has a relatively average “flat” tax rate of 4.63 percent. Overall, Colorado falls somewhere in the middle on the tax rate spectrum, with many U.S. states having higher rates and many having lower rates. Colorado residents also earn more on average than much of the country. Data USA claims that households in Colorado enjoy a median annual income of $71,953 – more than the national median annual income of $61,937.

As far as real estate is concerned, Colorado isn’t the cheapest. Business Insider reports that the median home price in the state is $397,820, making it the sixth most expensive state to buy a house. Keep in mind, though, that the amount of bang you get for your buck varies depending on the city. For instance, home prices tend to more expensive in major cities, such as Boulder or Denver, and in resort towns, such as Vail. But homebuyers should be able to find a perfectly affordable home in second-tier cities, such as Colorado Springs. For a more in-depth look at the cost of living in Colorado, we’ve rounded up cost of living data (from AreaVibes and Realtor.com) for 10 of the most popular cities in the state.