Are you looking to start over in a new city like Denver? Before you pack your bags, you should have a solid understanding of the costs of living in the Centennial State compared to your current residence. This guide will give you an idea of what makes up the cost of living in Denver, from housing expenses to food and healthcare costs. We’ll provide data from the local cost of living index and comparison tools and look at how Denver ranks for livability compared to other U.S. cities. We’ll also share a handy set of online resources to measure and compare the cost of living and expenses in other Colorado cities. When you’re planning to live in a new city, the cost of living there will be a combination of expenses required to maintain your desired lifestyle. Cambridge Dictionary defines cost of living as “the amount of money people need to spend to buy basic goods or services such as food, clothes, and a place to live.” This overall cost can vary significantly based on location, even within [state name]. But the living expenses you’ll pay for typically include the following categories: However, the costs often extend beyond these basics to cover other expenses, such as: These elements, when combined, establish the core costs associated with a particular way of living. However, the standard of living you achieve is largely influenced by your income and debts and how the dollar amounts compare to the costs of basic needs in your location or, in this case, the Denver community where you might want to live. Let’s take a quick look at some ways you can compare your current living cost with what you might experience if you move to Denver. A cost of living index (CLI) monitors how these basic expenses change over time in different states, cities, or regions. They provide a way to compare the price of maintaining a particular standard of living. The CLI for a city like Denver is calculated by assessing the price of essential goods and services in different areas, such as housing, food, transportation, and healthcare. A local index is typically standardized, with a base city assigned a baseline index value (usually set at 100). Other cities are then compared against this benchmark. For example, a Colorado community with a CLI of 125 would signify that living there is 25% more expensive than the base location, while an index of 75 indicates it’s 25% less expensive. A cost of living index will typically break down and score each basic expense by category. Here are separate scores for Denver from the Axios Denver Cost of Living Index: According to Axios, Denver has the 38th-highest cost of living among the U.S. cities or urban areas they analyzed (as of Q4 2023).What makes up the ‘cost of living’ in Denver?
What’s a Denver cost of living index (CLI)?
