How much is the Denver Cost of Living? (a comparative analysis)
People mostly do not choose cities like Denver to move to permanently. However, people struggling in the big cities find peach areas like here. Because living here will be only 12% higher than the national average and 8% higher than the Colorado state average.
Moreover, accommodation is 37%, transportation is 12% and health services are 10% higher than the national average. On the contrary, utilities and food will be 16% and 8%cheaperr here compared to the USA average. Calculating more deeply will
Specifically, Denver’s Cost of living for a single person is more than $34,427 yearly. It will be more than $50000 for a family of two adults only. In the case of a child, one can add $9000 to $10000 for each child with that cost.
Denver Cost of Living
The name Denver has many pronouns and every one of them attracts people to choose this city for leaving. This is the biggest city and the capital of the State of Colorado. Moreover, it is the 19th more popular city in the United States of America.
It is one of the most unique cities having both hill tracks and lakes. It may not be as happening as the New York or Los Angles but it will give a vibe of a 90s movie. Seeing the city from the hill will make you feel l you are in a 1990s drama.
Moreover, the living quality of this city scored 94 which is quite good. Having 14% higher living cost than the national average, many people with low income choose this city for their family to live in. As we know that not every profession has the same wage range.
Many prefer to work in the big city with high pay range and their families live in places where the living cost is low. Because sometimes that person’s income is not enough to support his family’s monthly expenses in cities like NYC.
However, the living cost of this city is increasing like other cities or we can say the whole world. Since 2015, the consumer price index including groceries and food outside is having risen with no sign of falling.
In 2022, the consumer price decreased by 7.7% compared to 2021. It is a blessing you can say this time. The chaos happening in the world is pulling the cost of living to the peak for many cities in the USA.
However, going backward the trend, this city is thinking about the citizen and trying their best to ensure a better living quality. Which we can see by the decreasing graph of consumer prices in 2022. Let’s see which will be the scenario of living in the different conditions below.
The scenario of the overall living cost index: Single person Vs Family with kids
People have different preferences for living no matter what city they choose. If you survey the living type, there will be many kinds. Such as single, only couple, living with one or more children, living with all the family members including their parents, grandparents, siblings, and so on.
Therefore, we can guess the variation in cost and it will not be the same for every family. Even if we compare families with the same type of member, in the end, we will find that both of the family has a different type of expense.
It is because they will have different food habits, transportation costs, and more. So, we can guess an approximate amount for different types of families. Below the table will hold the information on the cost.
A single person will need around $34000 annually. In that, they will need the most money for housing and food. Depending on the area the rent can be $15000 and $4000 for food only. There will be other costs such as transportation, medical, and so on. Moreover, they will have to pay an income tax according to their income range which can be 7%.
For a single parent with a child, one or more will need to work their bone out to maintain the living cost. Because there will be more costs for the child such as childcare, food, medical, and so on. One can estimate the expense from a range of $66000 to more than $80000 per year.
Besides, the number of parents, one working or both of them working has a different scenario than the other one. if one is working and the other is not, they can save a big portion of their income. Because they will not need to hire babysitters or childcare for their children.
Childcare for a child will cost around $5,893 and it will be double for two children. To be specified, it will be one of the highest expenses in the living cost index. Therefore, parents working full time will have to pay that to keep their children safe and well-maintained.
Overall, it will depend on the individual’s family situation and their habits. So, it is hard to say what your scenario will be. It is better if you estimate by the individual data we will give below.
Salary index and the range of income tax for different types of job
I have already given an overview of the living cost in one of the populated cities Denver. Now, one will need the wage range of this city to draw the overall scenario whether it is in their favor or not. The good thing about the US job market is the government has set a logical minimum wage range for every profession.
As of this one, the government of Colorado has set the minimum salary to $12.56 per hour. For the tipped workers it is $9.54. In case of more detailed information on various employment, the data in the table below will help.
|Occupational Area||Typical Annual Salary|
|Computer & Mathematical||$103,469|
|Architecture & Engineering||$94,032|
|Business & Financial Operations||$80,935|
|Healthcare Practitioners & Technical||$80,207|
|Life, Physical, & Social Science||$78,688|
|Arts, Design, Entertainment, Sports, & Media||$55,212|
|Installation, Maintenance, & Repair||$54,688|
|Education, Training, & Library||$53,671|
|Community & Social Service||$53,661|
|Construction & Extraction||$53,554|
|Office & Administrative Support||$43,731|
|Sales & Related||$39,611|
|Transportation & Material Moving||$39,526|
|Building & Grounds Cleaning & Maintenance||$33,298|
|Farming, Fishing, & Forestry||$32,796|
|Personal Care & Service||$32,378|
|Food Preparation & Serving Related||$28,708|
According to BLS, this area has the highest range of salary for management-level jobs which will be more than $135000 with proper experience and skill. After that, jobs related to computer science and mathematics placed second having more than $100000 in income range per year.
Moreover, the engineering and legal sector also have a six-digit salary range which will be a great option. On the other hand, one of the lowest paying jobs here is the food preparation service which is a waitress and waiter type of job. Working full time, they can earn around $29000 or a little more every year.
Besides, personal care, farming, cleaning and maintenance, and healthcare support also have a lower range between $32000 to $35000. According to the living index above, it will be hard to maintain a healthy lifestyle here with a family with this income.
Let’s see demonstrated cost below to give a clear outlook. One can decide whether they can skip any of those or choose the cheapest option to lower the calculation we provided. As I said, the habit and preferences of a family can lead to a lower or even higher cost than the one we calculated.
Housing and Utilityexpense: Renting Vs Owning
The highest expense of living will be the rent and utility. No matter whether you are single or living with your family, whether you are living in a small city or a big city. Well, one thing is you can decide the place and lower or higher the cost.
Renting or buying a house in the city center will be the most expensive option. However, the same action outside the city center will save up to 20% of your money. In case, there is a shortage of income which is not enough to live in luxury, we will highly suggest choosing accommodation outside.
because the housing here is quite expensive which is 38% more than the national average. For example, a studio apartment in the city center will be more than $1800 which is more expensive than in cities like New York, Seattle, and so on.
However, the same apartment outside will cost around $1600 or a little less. The same goes for the family apartment too.
|Apartment (1 bedroom) in City Centre||$1,846.88|
|Apartment (1 bedroom) Outside of Centre||$1,582.15|
|Apartment (3 bedrooms) in City Centre||$3,341.18|
|Apartment (3 bedrooms) Outside of Centre||$2,521.18|
|Price per Square Meter in City Centre||$4,910.00|
|Price per Square Meter Outside of the Centre||$3,156.22|
|Electricity, Heating, Cooling, Water, Garbage…||$150.27|
|1 min. of Prepaid Mobile Tariff Local||$0.28|
Buying a house have the same scenario, expensive in the center and a little less expensive outside the center. In case, you are concerned about whether it will be good to rent a house or buy a house. We will say if you are planning to Seattle here permanently you can choose to buy a house over rent.
For that, it is required to have at least 30% of the house price in cash. For the rest of the payment, you can take a house loan and pay it with the money you are planning to expense on the rent. By that, the income is going to be profitable. After paying the loan, the house will be all yours. Now, the decision is on you based on the situation.
Expenses of Food: Home cooked Vs Restaurant
The good thing about living here is the groceries and eating outside will be less expensive. Compared to US national average, buying groceries in Denver is 5% cheaper. The most expensive cost will be the meat, chicken, cheese, and most of the protein-based food on the grocery list.
Besides, eating outside which is a regular thing for people who work full time will cost $17 per day. It is not much if we calculate in terms of groceries, we need to use to prepare the meal at home.
|Coke/Pepsi (0.33-liter bottle)||$2.65|
|Water (0.33-liter bottle)||$2.08|
|Loaf of Fresh White Bread||$3.94|
|Rice/ per kg||$4.69|
|Eggs/ 12 pc||$3.02|
|Local Cheese/ 1kg||$11.71|
|Chicken Fillets/ 1kg||$14.88|
|Beef Round/ 1kg||$15.53|
|Water/ 1.5-liter bottle||$2.04|
|A meal in a cheap restaurant||$18|
|2 Meal in a good restaurant||$70|
Transportation expenses of different types
In most cities, people like to walk to their work which is extremely healthy. In Denver, the population is one of the highest. so, walking will be a good idea to avoid traffic jams. However, people can always take public transport which is 5% higher than the state average and 10% higher than the national average.
|Local transport ticket||$3.03|
|Monthly ticket for local transport||$101|
|Gas / Petrol||$1.16|
Denver living expense Vs other cities
While leaving a country or a city for another one, it is important that people compare both the place. In terms of salary and living expenses, Denver is highly affordable compared to many cities. People living in San Francisco planning to move to Denver can save at least 73% of their salary yearly.
Having almost similar calculations, New York is more than 67% more expensive than this city. Moreover, Washington, Chicago, Boston, and many other cities will be less affordable than here.
On the other hand, cities with the same living index as Dallas and Miami will be more affordable than Denver. If you are living in this area, you can terminate the choice of moving to that city. Now, it is on you to decide which options best suit you.
Overall understanding from that long discussion is, not every area of the cost can be controlled. But if you are in a tight income range, you can avoid little luxury and choose the mandatory part only. For example, avoiding expensive restaurants and expensive areas for accommodation will save a lot.