Cost of Living in Denver, Colorado

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Denver, Colorado, is known for its breathtaking views of the Rocky Mountains, vibrant outdoor lifestyle, and booming job market. As one of the fastest-growing cities in the U.S., Denver has become a desirable location for professionals, outdoor enthusiasts, and families alike. However, with its growing popularity comes rising living costs, and understanding the cost of living in Denver is crucial for anyone considering a move.

In this guide, we’ll break down the cost of living in Denver, covering housing, utilities, transportation, groceries, and more. We’ll also explore how you can invest your savings in real estate through mogul, where you can earn monthly dividends and benefit from property appreciation.

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Additional reading: How to Use a HELOC for Real Estate Investment

Housing Costs in Denver

Housing in Denver has become increasingly expensive due to its growing population and demand. Whether you’re renting or buying, it’s important to factor in the cost of housing as a significant portion of your budget.

• Rent: The average rent for a one-bedroom apartment in Denver is around $1,800 per month, while a two-bedroom apartment typically costs around $2,400. Popular areas like LoDo (Lower Downtown), Capitol Hill, and RiNo (River North Art District) tend to have higher rents, while neighborhoods like Aurora or Lakewood offer more affordable options.
• Home Prices: As of 2023, the median home price in Denver is approximately $650,000. Housing prices have seen steady growth, driven by high demand from both locals and out-of-state buyers.
• Property Taxes: Colorado’s property tax rate is relatively low, with an average rate of around 0.49% of a home’s assessed value, making homeownership more affordable in terms of taxes compared to other states.

Utility Costs

Denver’s climate can be unpredictable, with hot summers and cold winters, so utility bills can fluctuate throughout the year. Here’s a breakdown of typical utility costs in the city:

• Electricity: The average electricity bill in Denver is about $100-$130 per month, with higher bills in the summer when air conditioning is frequently used.
• Gas: During the colder months, gas bills for heating can reach up to $80-$150 per month.
• Water: Water bills average around $40-$60 per month for apartments and small homes.
• Internet: High-speed internet services in Denver typically cost between $60 and $90 per month.

Transportation Costs

Denver has a relatively robust public transportation system through the Regional Transportation District (RTD), but many residents prefer to drive due to the city’s spread-out layout. Here’s a breakdown of transportation costs:

• Gas: Gas prices in Denver are around $3.70 per gallon, in line with the national average.
• Public Transit: A monthly pass for the RTD, which includes buses and light rail, costs around $114. This is a cost-effective option for those who live and work in the city and prefer not to drive.
• Parking: Parking in downtown Denver can be expensive, with monthly parking passes ranging from $150-$250. Street parking is more affordable, but finding a spot in busy areas can be challenging.

For those who live in the suburbs or commute to the mountains, owning a car is often a necessity, which can increase overall transportation costs.

Grocery Costs

The cost of groceries in Denver is generally on par with other large U.S. cities. Here’s a look at what you can expect to spend on common grocery items:

• Milk: A gallon of milk costs around $3.70.
• Eggs: A dozen eggs typically costs about $4.20.
• Bread: A loaf of bread costs around $3.00.
• Chicken: A pound of boneless chicken breasts costs approximately $5.50.
• Fruits and Vegetables: Fresh produce prices vary, with a pound of apples costing about $2.60, and potatoes about $1.80 per pound.

Shopping at chain grocery stores like King Soopers, Safeway, or discount retailers like Walmart can help you keep your grocery costs manageable.

Healthcare Costs

Healthcare costs in Denver are slightly higher than the national average, but there are numerous healthcare providers and hospitals throughout the city.

• Doctor’s Visit: A routine visit to the doctor without insurance generally costs around $120-$150.
• Health Insurance: The average cost of individual health insurance in Colorado is about $475 per month.
• Prescription Drugs: Prescription medication costs vary, with most generic drugs costing between $15-$40 depending on insurance coverage.

Entertainment and Lifestyle

Denver’s outdoor recreation opportunities are a major draw for residents, from hiking and skiing to the thriving arts and dining scenes. Here’s a look at what you can expect to spend on entertainment and lifestyle activities:

• Dining Out: A meal at a mid-range restaurant costs around $20-$30 per person, while fast-food meals are closer to $10-$12.
• Fitness Memberships: Gym memberships in Denver range from $40 to $70 per month.
• Movie Tickets: A ticket to the movies typically costs about $13.
• Outdoor Activities: Hiking, skiing, and other outdoor activities can range from free to expensive, depending on whether you need equipment rentals or lift passes. For example, a lift ticket at a major ski resort can cost around $150 per day.

Many outdoor activities in Denver are free or low-cost, which makes it easy to stay active without overspending.

Taxes

Colorado’s tax structure is generally favorable compared to other states, especially in terms of property taxes.

• State Income Tax: Colorado has a flat state income tax rate of 4.4%, which applies to all income levels.
• Sales Tax: The sales tax rate in Denver is 8.81%, which includes state and local taxes on most goods and services.
• Property Tax: As mentioned earlier, Denver’s property tax rate is relatively low at 0.49%, making homeownership more affordable in terms of taxes.

How to Make the Most of Your Money in Denver

Denver’s cost of living has been rising, but with smart financial management, it’s possible to make your money go further. By saving on housing, transportation, and entertainment costs, you can allocate more of your income toward savings or investments.

One smart way to put your savings to work is by investing in real estate through mogul, where you can earn monthly dividends and benefit from property appreciation.

Invest with mogul and Grow Your Wealth

Here’s why mogul is an excellent option for putting your savings to work:

• Low minimum investment: Start investing in real estate with just $250, making it accessible for all types of investors.
• Monthly dividends: Enjoy consistent income from rental properties, helping you grow your savings steadily over time.
• Property appreciation: As real estate values rise, your investment grows, providing long-term financial benefits.
• Hassle-free investing: All properties are professionally managed by mogul, so you don’t have to worry about day-to-day management.

By investing through mogul, you can turn your savings into a profitable investment that helps build wealth over time.

The Bottom Line

The cost of living in Denver can be high, especially in terms of housing, but with careful budgeting, you can manage your expenses and enjoy all that this vibrant city has to offer. Whether you’re saving on transportation or finding affordable outdoor activities, there are plenty of ways to make Denver an affordable place to live.

Once you’ve saved on living costs, consider investing those savings through mogul to take advantage of monthly dividends and property appreciation from real estate investments. With a low minimum investment of $250, mogul makes real estate investing accessible and hassle-free.

Ready to make your money work for you? Join mogul today and start investing in real estate for long-term financial success.

Learn more: What are Triple Net Leases?

Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.