Denver, CO Cost of Living (2026)

Denver has a cost of living index of 118, putting overall expenses about 18% above the national average. The housing index is 150, which reflects the significant run-up in prices the city saw between 2015 and 2023. A one-bedroom apartment in Denver averages $1,700 to $2,200 per month, and median home prices sit around $550,000. The median household income is roughly $75,000, which means the typical household is spending a larger share of income on housing than residents did a decade ago.

For someone coming from an average-cost city, a $100,000 salary is worth about $85,000 in purchasing power in Denver. That's a meaningful premium but much less severe than the coastal cities. Denver still offers relatively good value compared to Seattle or Los Angeles at similar quality of life, though that advantage has narrowed as prices rose.

Colorado has a flat income tax rate of 4.4%, which is moderate. There's no additional city income tax for Denver residents, keeping the tax picture relatively simple. Groceries and transportation costs are close to the national average. The city's climate means lower heating costs than the Midwest but higher cooling costs than the Pacific Northwest.

One specific cost pressure in Denver is the combination of high property values and rising property tax bills. Colorado voters approved property tax relief measures in recent years, but effective rates on new or reassessed properties can still be significant. Renters are also affected indirectly since landlords pass rising property costs through in rent increases. Areas in Denver's eastern suburbs and in cities like Aurora and Lakewood offer somewhat lower rents while still providing access to the metro's job market.