. The rising price of houses and an influx of out-of-state transplants over the years have caused the cost of living to increase. Nowadays, a single adult needs a minimum of $39,846 annually to live in Colorado.

With an average elevation of 6,800 feet, Colorado sits head and shoulders above the other 49 states. And while it may not rank first when it comes to the most expensive states to live (

Hawaii

holds that title), it still has a higher-than-average cost of living.

Jerry

, the

super app

that finds you the best policies for

car

and

home

insurance, is diving into the cost of living in Colorado. We’ll get into the nitty-gritty of how much you need for food, healthcare, housing, and everything else you need to know.

How high is the cost of living in Colorado?

First, let’s zoom out and take a look at its cost of living index. Colorado has a cost of living index of 121.1, a solid 21.1 points higher than the US average of 100. This means that Colorado has, on average, a higher cost of living when compared to the rest of the country.

Colorado is not only expensive nationwide, but also within its own region. Take a look at the cost of living indexes for some of Colorado’s neighbors on all sides:

: 104.3

: 99.8

: 88.4

: 85.8

With the exception of Utah, Colorado is much pricier than its bordering states. But just how big of a bite does living in Colorado take out of your budget? Let’s look at some real-world monthly expenses like groceries, healthcare, housing, and transportation with a little help from MIT’s

Living Wage Calculator

RECOMMENDED

Compare auto insurance policies

No spam or unwanted phone calls · No long forms

ZIP Code

Find insurance savings

Food: $333 to $1,193 per month

To clarify, we’re talking strictly about your monthly grocery bill here—no late-night DoorDash, restaurant splurges, or “treat yourself” iced lattes included. All of those food purchases are in addition to the numbers below.

According to 2020 data from the Bureau of Labor Statistics, the average American spends around $411 per month on groceries. That’s about on par with what you’ll spend in Colorado—depending on the size of your household.

A single adult household spends $333.25 a month on groceries, but a family of four spends almost quadruple that at $1,193.42 monthly.

Healthcare: $567 per month

Another non-negotiable expense Coloradans pay a little extra for? Healthcare. On average, an individual American spends $477 each month on healthcare expenses. In Colorado, it’s a little higher at $567 each month, which adds up to $6,804 each year.

Kind of like grocery costs, the cost of healthcare varies widely from household to household. If you or someone in your household requires pricey prescriptions and frequent doctor visits, you’ll likely be looking at much steeper monthly healthcare expenses.

Housing: $1,907 to $2,332 per month

Since April 2021, Colorado home values have jumped 23.2% to $589,643—a cool six figures higher than the average US home value of $337,560.

It’s not just stunning views of the Rocky Mountains and unparalleled access to ski slopes that make Colorado homes so valuable; it’s also a classic case of supply and demand. There are more potential homebuyers than there are actual homes in Colorado, thus making each one harder for buyers to get and easier for sellers to jack up the price.

What you actually end up paying each month depends on the kind of home you’re in. Oh, and just for scale, the average rent nationwide shakes out to $1,904 a month:

Median monthly mortgage payment: $1,845

Average studio rent: $1,097

Average one-bedroom rent: $1,211

Average two-bedroom rent: $1,494

Average three-bedroom rent: $2,028

Average four-bedroom rent: $2,332

These numbers are painted with some broad strokes; they’re just the overall state averages. You’ll see much higher rents in some of Colorado’s fast-growing cities like

Denver

(average rent of $1,879),

Colorado Springs

(average rent of $1,465), and

Boulder

(average rent of $2,263).

Transportation: $411 to $1,217 per month

Colorado is a large state with

tons to explore

, so getting around is paramount. Transportation costs vary between $411 and $1,217.75 each month, while the national average for a two-person household sits at $818 per month.

It’s a huge gap, we know, but it all comes down to how you choose to get around in Colorado—either by public transportation or with

your own vehicle

Here are some important stats that influence transportation costs:

Average annual cost of car insurance in Colorado: $1,946 for

liability only

coverage, $2,541 for

comprehensive coverage

Monthly RTD pass: $114 just for Denver, $200 for broader metro area that extends out to Boulder

Average commute length in Colorado: 25.5 minutes

Average gallon of gas, as of June 2022: $4.77

MORE:

Colorado minimum car insurance laws

How much you need to make to live comfortably in Colorado: $39,846 to $110,692

All added up, a single adult needs to earn at least $39,846 each year, or $19.16 per hour, in order to live a comfortable life in Colorado. It’s much more for families: a family of four needs a minimum of $110,692, or $53.22 per hour, salary in order to afford Colorado life!

If those numbers frighten you, we’ve got even worse news for you. Colorado’s minimum wage is $12.56, meaning that affording to live in Colorado can be difficult for many. And the numbers we listed out about just cover the absolute bare minimum! Below are some common non-essential expenses in Colorado compared to the national average:

Average cost of a date: $109.12 (US average $116)

Average cost of an evening movie: $10.25 (US average $10.61)

Average cost of a Big Mac: $4.59 (US average $3.99)

Average sales tax: 7.65% (US average 5.09%)

Naturally, what one spends each month is completely different from person to person. We’re not saying that it’s impossible to live in Colorado with less than $39,846 a year. If you’re frugal and willing to cut back on the non-essentials, there are ways to make it work!

The Colorado cities with the lowest cost of living

If you’re panicking that there isn’t anywhere in Colorado that you can afford, panic no more! The cities listed below here have Cost of Living Indexes (COLI) below Colorado’s state average and the national average:

Pueblo

(COLI: 94): Located about two hours south of Denver, Pueblo is a much more affordable alternative to the state’s capital. Plus, it’s home to the Colorado state fair!

Alamosa

(COLI: 92): Alamosa is home to Colorado’s famed Great Sand Dune National Park, along with an up-and-coming downtown scene.

Fruita (COLI: 95): If you’re looking for unbeatable access to some of the best of Colorado’s great outdoors, you won’t do much better (or cheaper!) than Fruita, located in Mesa County.

Greely (COLI: 95): Northeast of Denver and east of Fort Collins, Greely has an exploding craft beer scene and historical downtown.

Trinidad (COLI: 90): Trinidadis close to the

New Mexico

border and is particularly attractive to young professionals because of its blossoming arts scene.

MORE: The 5 best Colorado road trips

How to easily find home and car insurance in Colorado

Considering how expensive it can be to put down roots in Colorado, you’ll need all the extra breathing room in your budget that you can get. That’s where

Jerry

comes in: it’s a first-of-its-kind

super app

for insurance that helps you find stellar deals on your home and auto policies—and takes care of the hard work for you!

Just download the app for free from the app store, take 45 seconds to answer some questions about your coverage needs, and watch as Jerry finds you great deals across dozens of insurance providers.

And it doesn’t stop there: once you’ve found a great deal, Jerry can help you cancel your current policy and will send you new quotes every six months to ensure that you’re always getting the lowest price.