🏔️ Cost of Living in Denver, Colorado
Complete 2026 data for singles & families | Updated May 2026 | Mile High City
Overall vs US Avg
Median Rent (All)
1-Bedroom Rent
Avg Annual Salary
Denver has transformed into one of America’s most desirable and expensive metro areas. The overall cost of living here sits roughly 24.6% above the national average [citation:1]. Driven by its booming economy, outdoor lifestyle, and population growth, the Mile High City offers a unique blend of urban living and nature access — but it comes at a premium.
🏠 Housing & Rent (2026)
Good news for renters: Denver’s rental market has shifted in favor of tenants. January 2026 marked the 29th straight month of year-over-year rent declines for 0-2 bedroom properties [citation:9]. The vacancy rate rose from 4.7% in 2024 to 6.5% in 2025, moving the market from landlord-friendly to balanced [citation:9]. As of May 2026, the median rent for all property types in Denver is $1,884, which is 3% lower than the national average [citation:2].
Average Rent by Unit Type (May 2026)
| 🏢 Studio Apartment | $1,593 / month |
| 🏢 1-Bedroom Apartment (Avg) | $1,595 – $1,749 / month |
| 🏢 2-Bedroom Apartment | $2,175 / month |
| 🏢 3-Bedroom Apartment | $2,500+ / month |
| 🏠 House Rental (Avg) | $2,812 / month |
Rent by Neighborhood
| 📍 Downtown / LoDo (1BR) | $2,200 – $2,600 / month |
| 📍 Capitol Hill (1BR) | $1,500 – $1,800 / month |
| 📍 Highlands (1BR) | $2,000 – $2,400 / month |
| 📍 RiNo (Arts District) | $1,900 – $2,300 / month |
Most Affordable Neighborhoods
| 📍 Aurora (East Denver) | $1,400 – $1,700 / month |
| 📍 Lakewood (West Denver) | $1,500 – $1,800 / month |
| 📍 Westminster (North) | $1,450 – $1,750 / month |
| 📍 Englewood (South) | $1,500 – $1,800 / month |
🏠 Buying vs. Renting in Denver (2026)
| Median Home Sale Price | $550,000 – $570,000 |
| Income Needed to Buy | $145,010 / year |
| Income Needed to Rent | $74,260 / year |
| Income Premium to Buy vs Rent | 95.3% |
💡 Utilities (2026)
Denver has some of the lower electricity costs in the country. Electric costs in Colorado have gone down about 3.7% from a year ago [citation:1]. However, with 157 days per year below freezing, heating expenses can add up during winter months [citation:1].
Electricity & Gas
| ⚡ Average Electric Bill (Monthly) | $100 – $150 / month |
| ⚡ Electricity Rate (Colorado) | Lower than national average |
| 🔥 Heating/Gas (Winter Avg) | $80 – $150 / month |
💧 Water (Denver Water – 2026 Rates)
Denver Water approved new rates effective January 1, 2026. For a typical single-family residential customer using 104,000 gallons annually, the monthly bill will increase by about $2.45 to $3.30 [citation:3].
| Fixed Monthly Charge (5/8″ & 3/4″ meter) | $20.91 / month |
| Tier 1 Rate (0 to avg winter consumption) | $3.03 / 1,000 gallons |
| Tier 2 Rate (AWC + 15,000 gallons) | $5.45 / 1,000 gallons |
| Tier 3 Rate (Above AWC + 15,000) | $7.26 / 1,000 gallons |
🌐 Internet
| Internet (100 Mbps) | $60 – $85 / month |
📈 Inflation & Price Trends (Jan 2026)
According to the U.S. Bureau of Labor Statistics, the Denver-Aurora-Lakewood area CPI-U advanced 2.6% for the 12 months ending January 2026 [citation:4].
| All Items CPI | +2.6% |
| All Items Less Food & Energy | +3.3% |
| Food Prices (Overall) | +2.2% |
| Food at Home (Groceries) | +0.2% |
| Food Away from Home (Restaurants) | +5.0% |
| Energy Prices | -9.1% |
🛒 Groceries & Food
According to BLS data, fruits and vegetables saw a 5.2% increase in the last two months of 2025, while meats, poultry, fish, and eggs rose 4.5% [citation:4]. Shop at stores like Smith’s for loyalty programs and discounts [citation:1].
| 🥛 Milk (1 gallon) | $3.80 – $4.50 |
| 🍞 Fresh White Bread (1 lb) | $3.50 – $4.50 |
| 🥚 Eggs (12, large) | $4.50 – $6.00 |
| 🍗 Chicken breast (1 lb) | $5.00 – $7.00 |
| 🍎 Apples (1 lb) | $2.00 – $3.50 |
| 🍌 Bananas (1 lb) | $0.80 – $1.00 |
| Monthly Groceries (Single Adult) | $350 – $450 |
🍽️ Dining Out
Dining out in Denver is a premium experience. Restaurant prices have increased 5.0% over the past year, driven by rising labor and food costs [citation:4].
| 🍔 Fast food combo meal | $12 – $15 |
| 🍽️ Casual lunch (business district) | $18 – $25 |
| 🍝 Dinner for two (mid-range restaurant) | $70 – $100 |
| 🍺 Domestic beer (bar) | $6 – $8 |
| ☕ Cappuccino | $5.00 – $6.00 |
🚗 Transportation (2026)
Denver has a good public transport system, ranked #15 in the U.S. for public transportation availability [citation:1]. However, driving is ranked #75 in driver friendliness, meaning traffic can be challenging, especially during bad weather [citation:1].
🚌 RTD Public Transit (2026)
| 🚌 Monthly RTD Pass (Local) | $99 / month |
| 🚌 Single Ride (Local) | $3.00 – $4.00 |
| 🔄 RTD Access-on-Demand (2026) | $4.50 base fare |
🚗 Driving & Car Costs
| ⛽ Gasoline (1 gallon) | $3.40 – $4.00 |
| 🚗 Average Commute Time | 35.21 minutes |
| 🚙 Car Insurance (Monthly Avg) | $150 – $220 |
🏥 Healthcare (2026)
Healthcare premiums in Colorado are increasing significantly in 2026. The expiration of federal enhanced Premium Tax Credits means many marketplace customers will see net premium increases of 100% on average [citation:6].
Health Insurance Premium Changes (2026)
| 📈 Avg Net Premium Increase (with financial help) | +100% |
| 📈 Ages 55-64 Net Premium Increase | +144% (~$235 more/month) |
| 📈 No Financial Help (Gross Premium Increase) | +27% (~$122 more/month) |
| 👥 Customers Eligible for Financial Help | 65% (down from 81% in 2025) |
Childcare Costs
| 👶 Childcare (child up to 3 years, annual) | $13,154 / year |
| 📊 Colorado Childcare Rank (Highest in U.S.) | #7 |
💰 Income & Salary Requirements (2026)
Average Salaries in Denver
| 💰 Average Annual Salary (Denver employees) | $88,814 / year |
| 💰 Salary Range | $78,064 – $100,490 |
| 💰 Median Household Income (Metro) | $113,896 |
| 💰 Income Needed to Rent (Typical Apt) | $74,260 / year |
Monthly Budget Breakdown
• Rent (1-bedroom, avg): $1,595 – $1,749
• Utilities + Internet: $200 – $280
• Groceries: $350 – $450
• Transportation (RTD pass + occasional rideshare): $120 – $200
• Healthcare (insurance + out-of-pocket): $350 – $550
• Dining / Entertainment: $250 – $400
💰 Total Monthly: ~$2,900 – $3,600
💰 Total Annually: ~$34,800 – $43,200
To maintain a comfortable lifestyle following the 50/30/20 budget rule, a single adult in Denver should target an annual salary of $65,000 – $80,000 before taxes.
The average salary in Denver is around $88,814, which is 7-8% above the national average and provides significant financial breathing room for most renters [citation:7].
Income to Buy vs Rent: To buy a median-priced home ($570,000), you’d need $145,010/year — nearly double the income needed to rent comfortably [citation:8].
💼 Denver Job Market (2026)
• Aerospace & Defense
• Technology (growing startup scene)
• Healthcare (UCHealth, Centura, Denver Health)
• Finance & Insurance
• Renewable Energy / Cleantech
• Tourism & Hospitality
Major Employers: UCHealth (~26,000), Denver Public Schools (~15,000), City/County of Denver (~13,000), Lockheed Martin (~10,000), DaVita (~10,000)
☀️ Climate & Lifestyle Considerations
• 300+ days of sunshine annually — among the sunniest U.S. cities
• 1 hour to the Rocky Mountains — world-class skiing, hiking, and camping
• 157 days below freezing — cold winters with moderate snow
• Low humidity year-round — much more comfortable than the Southeast or Midwest
• Elevation 5,280 feet — drink more water! Altitude affects everyone initially
💡 Outdoor Paradise: Denver is the only major city with direct access to mountains, skiing, hiking, and camping within an hour’s drive.