The Real Cost of Living in Denver
Here at Prosperity, we love everything colorful Colorado has to offer. Well, almost everything. According to US News, Denver is the 16th most expensive city to live in in the US. But how much does it really cost to live in Denver?
One number I found was that the estimated total monthly cost of living for a single adult in the mile high city comes from Expatistan- as of time of writing it estimates that number to be $3,798. Let’s unpack that.
An average person has the following monthly expenses:
Housing
Rent or mortgage
Utility bills
Transportation
Car payment
Car insurance
Gas
Public transportation
Food
Eating in
Eating out
Healthcare
Health insurance
Wellness (gym memberships)
Entertainment
Debt repayment
Student loans
Consumer debt
I’m a data driven person, so I’m going to try and recreate that $3,798 with the above categories. Every persons budget varies, so this will be different from your numbers but hopefully you can compare these numbers to yours and see how you’re doing.
Housing
Shelter
I found that the average apartment in Denver is rented at $2,000 for 840 square feet according to rentcafe. This definitely varies by neighborhood from Congress Park ($2,564) to Westwood ($1,294).
Utilities
It was difficult to find a Denver specific data set for this, but I was able to find a state level breakdown of utilities at Sofi. They list the average utility cost statewide at $331. That’s made up of electricity ($92), gas ($88), cable and internet ($110) and water ($41). These numbers definitely look like the rates for single family homes to me. I couldn’t find rates for sewer, but Denver does have a “pay as your throw” trash policy as of January 2023 and the rate goes from $9-$21 a month depending on the size of the cart you choose.
Total housing: $2,000+$331+($9 to 21) = $2,340 to $2,352 plus sewer fee.
Transportation
The amount of money a person spends on transportation can vary heavily due to a few factors: does this person own a car? Is the car financed or paid off? How far do they drive in an average month? Is their car fuel efficient? According to Simply Insurance, the average monthly payment for a new car is $539 and $336 for a used car. Then we need car insurance, which Bank Rate says is $2,121 annually in Colorado. That comes out to $176.75 a month. Axios reports that Denver area households drive about 1,536 miles per month on average. Assuming you drive a car with average efficiency, let’s say 26 miles per gallon for this experiment, then you’re buying 59 gallons of gas every month. Current gas prices at time of writing are about $3.25 in Denver, so that puts you at $192 on a monthly basis. Alternately, you could get an RTD pass and ride the bus and lightrail for $114 a month if you’re in the local region or $200 if you’re further out like near the airport.
Total transportation: car payment + car insurance + gas = ($336 to $539)+176.75+192= $704.75 to $907.75 for car owners, or $114-$200 for RTD riders.
Food
It was difficult to pin down a local to Denver rate on how much a person’s grocery bill sets them back, but Sofi’s page had a statewide number, $342, so we’ll use that. The Bureau of Labor Statistics says that the average Denverite spends 11.7% of their budget on food excluding alcohol. That sounds about right for me and my budget, what about you? I couldn’t find any good data online about eating out, but my experience with my clients shows folks spend between $250 and $400 on eating out on average here in Denver.
Total food: $342+($250 to $400)= $592 to $742
Healthcare
Health insurance is a little funky for many folks because if you work a W2 job that offers it as a benefit, it’s likely deducted from your paycheck without you even noticing… but that doesn’t mean it’s not a real expense! According to ValChoice, health insurance statewide costs an average single person $538 a month. For those of us lucky enough to be in an employer sponsored healthcare plan, it’s likely we only pay a portion of this number, which is very fortunate. To account for folks who work in lines work that do not provide health insurance, I’ll be including this number as part of my calculation. Looking to a common wellness expense, Yahoo says the average gym membership in Denver costs $77. I personally pay $81, so I think this one is dead on the money.
Total healthcare: $538+$77= $615
Entertainment
What a tricky category to quantify. The Bureau of Labor Statistics says the average Denverite spends 4.9% of their budget on entertainment. My client experience has been varied, but if you count all those ski trips as entertainment, you’re in for a big number here. With tickets to a game at Coors Field starting at under $10, there’s plenty of cheap entertainment to be found. I’m going to use my own personal number here- $340. I like to attend local community events, concerts and experience the outdoors by having a ski pass. Sound like a lot? I’d love to hear what your entertainment budget is!
Total entertainment: $340
Debt Repayment
This category is the worst. No one likes debt, but it’s imperative that we account for it in the cost of living, especially if the debt is consumer (that means it’s from credit cards). The average minimum for federal student debt is $280 for a bachelors degree according to Best Colleges. Credit Karma published a breakdown of debt by age and state where gen z holds on average $19,352 and millennials hold $63,053, including student, car, consumer and mortgage debts. It’s hard to say what the interest rate, repayment period or monthly payment may be for these numbers, so we’re going to make our only assumption in this whole post and assume that the average Denverite holds student debt, but not consumer.
Total debt: $280
So, what’s the grand total? Since we have a few items with ranges, I’ll give you a low and a high: $4,281 at the low end and $5,236.75 on the high side.
What do you think? It looks like I came in above the original number from Expatistan, do you think I got it right? Message me with your thoughts on these numbers, and share yours too!
