Colorado cost of living
Can you afford to live in the Centennial State?
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Relocating to Colorado means adjusting to a state with striking mountain backdrops, active cities and a robust economy — but it also means facing some unique financial realities. For those considering a move, it’s essential to understand how much everyday life might cost, from rent and groceries to health care and utility bills.
To determine the cost of living in Colorado, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Colorado spend $63,781 each year on goods and services, on average.
Jump to insightThe median rent in Colorado is $1,605, versus the national median rent of $1,639.
Jump to insightResidents in Colorado spend $279.98 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $3.10 in Colorado.
Jump to insightRecent data shows that employees in Colorado pay $1,823 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Colorado
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Colorado was $63,781 in 2023. This amount reflects what individuals typically spend each year on essentials like housing, health care, food, fuel and other goods and services.
Here’s a breakdown of the largest spending categories in Colorado:
| Category | Annual per-capita cost in Colorado |
|---|---|
| Housing and utilities | $12,600 |
| Health care | $8,415 |
| Food and beverages for off-premises consumption | $4,922 |
| Gasoline and other energy goods | $1,383 |
| All other personal consumption expenditures | $36,462 |
| Total cost | $63,781 |
Housing costs in Colorado
Housing often makes up the largest part of a household’s budget, and in Colorado, those costs can be significant. Based on 2025 numbers from Apartments.com, the average rent in Colorado is $1,605, while the national average is $1,639. Renters will see noticeable differences depending on their location and unit size. According to the U.S. Census Bureau’s 2023 American Community Survey, average monthly rents in Colorado are:
- One-bedroom rent: $1,546
- Two-bedroom rent: $1,810
- Three-bedroom rent: $2,083
- Four-bedroom rent: $2,305
If buying a home is your goal, the median home price in Colorado is $600,400, which is much more than the U.S. median of $446,638.
Property taxes are another consideration — Colorado’s effective property tax rate is 0.50%, placing it among the higher rates in the country.
» COMPARE: Best moving companies in Colorado
Food costs in Colorado
How much you’ll spend on groceries and dining in Colorado depends on your habits and where you live. The latest U.S. Census data shows the average Colorado household spends $279.98 per week on groceries, a figure that’s comparable to $270.21 nationally.
Budgeting for food in Colorado can look different in a mountain resort town than it does in a suburb or rural area. Families who prefer home-cooked meals or shop at discount grocers may keep costs down, but those who dine out frequently — especially in urban or tourist-heavy spots — will see expenses add up quickly. Access to local farmers' markets and seasonal produce may help stretch your food dollars in some parts of the state.
Transportation costs in Colorado
The average cost for a gallon of regular gas in Colorado is $3.10, which is slightly less than the national average of $3.13.
When it comes to auto insurance, Coloradans pay an average premium of $1,446.48 for liability, collision and comprehensive coverage combined. The national average is $1,258.
Health care costs in Colorado
For those with employer-sponsored health insurance, the average annual employee contribution in Colorado is $1,823, with employers typically covering the remaining $6,322 out of a total premium of $8,145.
Across the U.S., employees contribute an average of $1,640 toward a total premium of $8,182.
Utility costs in Colorado
Colorado residents pay an average monthly electric bill of $94.65, which is significantly lower than the national average of $136.84.
Natural gas runs $9.73 per thousand cubic feet in Colorado, versus $12.92 nationwide.
FAQ
Does Colorado have a high cost of living?
Yes, Colorado has a higher cost of living than the national average. Residents often pay more for housing, especially when buying a home. Gasoline and utility prices are a bit lower than average, but these savings may not fully offset steeper expenses in other areas.
Is Colorado a good place to live?
Yes, Colorado is a good place to live if you’re seeking a balance of urban convenience and outdoor recreation. Although living costs are higher than in many states, Colorado’s quality of life, active communities and strong job market make it an appealing destination for many people considering a move.
Is Colorado good for renters?
No, Colorado isn’t good for renters. Renting in Colorado is less affordable than in most other states, and apartments may not be as easy to find in certain markets. While the state offers quality rental units, those looking for low rent or many rental options might face challenges.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
