Cost of Living in Denver, CO: Renting vs. Owning a Home in Denver
Brought to you by Pulte Homes®
While the cost of living in Denver, Colorado, tends to be higher than the national average, there are a few factors that have drawn homeowners and kept locals here for years. With its clear skies, thriving city life, thrilling outdoor adventures, and convenient access to an international airport, it's no wonder so many people choose to call Denver home. Let’s take a closer look and learn more about Denver’s cost of living.
Summary:
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Cost of Living in Denver: Renting vs. Owning
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Average Cost of Rent in Denver by Neighborhood
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Average Cost to Build a New Home in Denver by Neighborhood
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Average Cost of Groceries/Utilities in Denver
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Average Salary in Denver
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Tax Benefits for Homeowners in Denver
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Conclusion
Cost of Living in Denver: Renting vs. Owning
According to Payscale®, as of June 2025, the cost of living in Denver, Colorado, is about 9% higher than the national average, while BestPlaces® finds the Denver cost of living index to be 127.6.
However, Colorado generally has a lower property tax rate than other states, hovering around 0.45% as of June 2025, per the Tax Foundation. Buying a home here, even new construction homes in Denver, could be a great fit for you, depending on your circumstances.
Should you prefer to rent, Denver offers an abundance of neighborhoods with rental options. While you may not be able to control annual rent increases, you can keep an eye out for hidden costs, extra fees, and potential rent hikes before signing or renewing your rental lease.
Average Cost of Rent in Denver by Neighborhood
When looking for an apartment and considering the Denver cost of living, location is key. Downtown Denver and other popular areas tend to have higher rents. So, considering your lifestyle and needs is essential when making a decision. Let’s look at Denver’s average apartment rent in a few of the city’s popular spots.
Congress Park
As of May 2025, the average rent in Congress Park is $1,686 per month, according to RentCafe®. This neighborhood is within close proximity to the historic district, and many residents consider it a slice of suburbia in the heart of Denver.
Downtown Denver
The Downtown Denver average apartment rent is around $2,275 monthly, as of June 2025, per RentCafe. The city center is full of fun and sights to see, with breweries, Coors® Field, lots of shopping options, and sprawling skyscrapers.
Cherry Creek
As a neighborhood known for its retail selections, including boutiques and high-end brands, the average monthly rent in Cherry Creek in May 2025 is $3,186, according to RentCafe.
Five Points
As of May 2025, the monthly rent in Five Points is $1,964 on average, per RentCafe. This area is one of Denver’s oldest and most diverse neighborhoods. Five Points was once called the “Harlem of the West” because of all the jazz legends who stopped here.
LoDo
Sandwiched between Coors Field and the central business district, Lower Downtown is an eclectic mix of shopping, dining, and historic landmarks. RentCafe finds the average apartment rent in LoDo to be roughly $2,504 as of May 2025.
Average Cost to Build a New Home in Denver by Neighborhood
Denver is a hot spot with homebuyers and renters alike. The city’s population increased 1.2% in three years, according to data from the U.S. Census Bureau. This popularity can drive up housing prices, but the average cost of new construction homes in Denver can depend on factors such as the type of property and the area. Let’s look at a few different Denver neighborhoods, so you can get an idea of the average cost to build a new home in Denver, CO.
Cherry Creek
As of June 2025, the median listing price of a home in Cherry Creek is $1.4M, according to Realtor.com®.
Littleton
The cozy suburb of Littleton, originally named Little Town, is less than 10 miles from Denver. Per Realtor.com, as of June 2025, new build homes range from condos in the upper $300Ks to single-family homes up to $2.5M.
Aurora
Another popular suburb of Denver is Aurora. New build homes here range from the mid $300Ks to $1.1M, per Realtor.com in June 2025. Pulte new construction homes in Aurora, CO, start in the mid $400Ks.
Firestone
Firestone, a suburb north of Denver, offers new build homes that range from the upper $400Ks to the upper $900Ks, per Realtor.com as of June 2025. Check out our new construction homes in Firestone, CO.
Elizabeth
Elizabeth is located about 40 miles south of Denver. Building a new home here, as of June 2025, ranges from the mid $400Ks to $1.1M, according to Realtor.com. Our new construction homes in Elizabeth, CO, start in the upper $500Ks.
Strasburg
Strasburg is a suburb to the east of Denver, another roughly 40-mile drive. Realtor.com finds the cost of a new build home to range from the mid $400Ks to $1.2M. Our new construction homes in Strasburg, CO, start in the mid $400Ks.
Average Cost of Groceries and Utilities in Denver
As of June 2025, RentCafe’s data finds the average cost of utilities in Denver is 11% less than the national average (though still 4% higher than the state average), while the cost of groceries in Denver is 8% higher.
Average Salary in Denver
While salary ranges vary based on industry, position, and experience, the average salary in Denver is $83K, according to Payscale (June 2025). MIT’s Living Wage Calculator finds that the living wage in Denver for a single individual is $26.20/hour, while two working adults with two children need to earn around $41.85/hour (June 2025).
Tax Benefits for Homeowners in Denver
Colorado offers several programs for homeowners in Denver, Colorado. For example, seniors, low-income households, and individuals with disabilities can apply for the Property Tax/Rent/Heat Credit (PTC) Rebate for rent, property taxes, and heating and electric bills. The Home Modification Tax Credit, for modifications made to improve disability access, is also available through 2028. In addition, you may benefit from the federal Energy Efficient Home Improvement Credit.
You can find the most current information on these tax benefits, available programs, and more resources for homeowners at the Denver government website.
Conclusion
Now that you're familiar with Denver living expenses, it's time to figure out what kind of living situation works best for you based on your budget and needs, such as whether you’d rent or own a home and where you might like to settle down. You can have your pick, from dynamic neighborhoods with several annual events to more secluded, gated communities in the suburbs of Denver. You’ll also want to consider whether you prefer being close to work or if a longer commute is manageable. By answering these kinds of questions, you can narrow your search for the perfect home in the Denver area.
Explore new construction homes in Denver, CO, today, or browse more Pulte blogs.
Written By: Alexandra Shimalla, Freelance Journalist
Last Updated: 3/19/26