Cost of Living in Denver, CO: Renting vs. Owning a Home in Denver

Daytime cityscape view of downtown Denver next to a pond, park pathway, and trees with mountains in the background near Pulte's new homes in Denver, Colorado.
Daytime cityscape view of downtown Denver next to a pond, park pathway, and trees with mountains in the background near Pulte's new homes in Denver, Colorado.

While the cost of living in Denver, Colorado, is higher than the national average, there are a few factors to consider. 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:

  • Cost of Living in Denver: Renting vs. Owning
  • Average Cost of Rent in Denver by Neighborhood
    • Congress Park
    • Downtown Denver
    • Cherry Creek
    • Five Points
    • LoDo
  • Average Cost to Build a New Home in Denver by Neighborhood
    • Congress Park
    • Five Points
    • Cherry Creek
    • Littleton
    • Aurora
  • Average Cost of Groceries/Utilities in Denver
  • Average Salary in Denver
  • Tax Benefits for Homeowners in Denver

 

Cost of Living in Denver: Renting vs. Owning

According to PayScale in 2023, Denver’s cost of living is 11% higher than the national average. But here's some good news: Recent data from the U.S. Bureau of Labor Statistics shows the cost of living in Denver is actually decreasing. Since 2020, it’s been trending downward for groceries, utilities, and other expenses. So, if you're considering a move to Denver, now might be a great time to make that leap.

 

Pros & Cons of Renting in Denver

Owning a home in Denver might not be the best choice for everyone. Denver has dozens of neighborhoods in the city center, offering plenty of rental options. While renting has its downsides, like being unable to control annual rent increases, you can keep an eye out for hidden costs, extra fees, and potential rent hikes before signing a rental lease.

 

Pros & Cons of Owning a Home in Denver

As a homeowner in Colorado, you not only enjoy the perks of having your own place without the rent hikes, but you could also get some tax benefits. Despite higher property prices than some other areas, buying a home in Denver, particularly in new construction in Denver, could be a smart purchase depending on your circumstances.

Exterior of spacious 2-story Rainier 3-bedroom floor plan in Aurora Highlands new construction home community in Denver, CO, by Pulte Homes
Exterior of spacious 2-story Rainier 3-bedroom floor plan in Aurora Highlands new construction home community in Denver, CO, by Pulte Homes

Average Cost of Rent in Denver by Neighborhood

When looking for an apartment and considering cost of living in Denver, location is key. Downtown and other popular areas tend to have higher rents. So, consider your lifestyle and needs before making a decision. Let’s look at Denver’s average apartment rent in a few of the city’s favorite spots.

 

Congress Park

As of 2023, the average rent in Congress Park is $2,564, according to RentCafé. This neighborhood sits close to the historic district, and many residents consider it a heavenly slice of suburbia in the middle of the city.

Downtown Denver

The average cost of rent in Downtown Denver is $2,443 in 2023, says RentCafé. The city’s heart is full of fun and sights to see, with breweries, Coors Field, lots of shopping, and sprawling skyscrapers. 

Cherry Creek

As a neighborhood known for its shopping, from boutiques to high-end names, the average rent in Cherry Creek in 2023 is $2,561 per RentCafé.

Five Points

As of 2023, rent in Five Points averages $2,395, according to RentCafé. This area is one of Denver’s oldest neighborhoods and 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 history. RentCafé finds the average rent in LoDo to be $2,537 in 2023.

Colorado flags hang by strings of lights over Larimer Square framed by buildings in downtown Denver, near new construction homes in Denver
Colorado flags hang by strings of lights over Larimer Square framed by buildings in downtown Denver, near new construction homes in Denver

Average Cost to Build a New Home in Denver by Neighborhood

Denver is a hot spot and popularity can drive up housing prices, but the average cost of new construction in Denver can vary by type of property, area, and other factors. Let’s look at a few different Denver neighborhoods to get an idea of the average cost to build a new home in Denver.

Cherry Creek

New build homes in Cherry Creek average $1.7M on Realtor.com as of October, 2023.

Littleton

The cozy suburb of Littleton, originally named Little Town, includes the Sterling Ranch community, where homes start in the low $800Ks.

Aurora

Another popular suburb of Denver is Aurora. This town has several new construction homes at the Aurora Highlands, with starting prices in the upper $400Ks; and Hilltop at Inspiration, a Pulte active adult community, with home prices starting in the low $600Ks.

Couple toasts wine glasses in owner's retreat of Marsala home floor plan in Sterling Ranch new home community in Denver, CO, by Pulte.
Couple toasts wine glasses in owner's retreat of Marsala home floor plan in Sterling Ranch new home community in Denver, CO, by Pulte.

Average Cost of Groceries/Utilities in Denver

Utilities are slightly more expensive in Denver than the national average, according to the U.S. Bureau of Labor Statistics in 2023. However, Denver living expenses are comparable across the states for groceries and food.

Average Salary in Denver

Denver is one of the top 10 cities in the U.S. for high salaries, per a study by CareerBuilder in 2021. While salary ranges can differ based on industry and experience, the average salary in Denver in 2023 is around $78,000, as reported by PayScale.

Tax Benefits for Homeowners in Denver

Colorado offers several programs to help homeowners with cost of living in Denver. Seniors, low-income households, and individuals with disabilities may apply for a Denver homeowner program that could provide credit towards rent, property tax, and heating and electric bills during the winter. A program offering tax credits for home modifications to improve disability access is also available. In addition, if you plan to make your home more energy-efficient, you may benefit from the Energy Efficient Home Improvement Credit federal program. For the most current information on these tax benefits for homeowners in Denver, make sure to check out the Denver government website.

2-story spacious home exterior of Pulte's Quincy floor plan offered in the Aurora Highlands new construction home community in Denver, CO
2-story spacious home exterior of Pulte's Quincy floor plan offered in the Aurora Highlands new construction home community in Denver, CO

Conclusion

Now that you're familiar with Denver’s cost of living, it's time to figure out what kind of living situation works best for you. Are you a homebuyer or renter? Are you looking for an energetic neighborhood with lots of annual events, or do you prefer a more secluded, gated community? You’ll also want to consider whether you need to be close to work or if a short commute is manageable. By answering these kinds of questions, you can narrow your search for the perfect home in the Denver area.

Explore new build homes in Denver today or browse more Pulte blogs. 

Written By: Alexandra Shimalla, a Georgia-based freelance journalist.

Last Updated: 11/29/2023