7 Reasons Colorado’s Cost of Living Is Out Of Sight

Why is Colorado so expensive to live here? It's a question often asked — if not accurately answered — by many people around here each and every day.

But is it really? How do we stack up to other "popular" states to live? And how much does it truly cost to call the Centennial State home?

The average cost of living in the state of Colorado is roughly $53,374 per year in 2024, which is about 7% higher than the national average.

So if you think it's more expensive to live here than many other states, you'd be right. But not all of them. We rank No.  2 on the list, so while the price to call this gorgeous state home is certainly well above average, there are at least 11 other states where you get less bang for your buck.

But why? Why are we ranked so high on the list? Here are seven reasons why Colorado's cost of living is so high.

1. We actually have a pretty dynamic job market here.

The infrastructure of our state is booming, having rebounded from COVID challenges with a diverse mix of tech, oil, mining, gas and hospitality industries, making the state a pretty great place to find a well-paying job.

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2. The Colorado lifestyle is appealing for people who live other places.

We're statistically healthier. We get more sunshine. You can ski on Jan. 1 and play golf on Jan. 2. Try telling that to someone from the Midwest where they don't see the sun between Christmas and Memorial Day, and they'll ask you where to sign up.

3. Recreational opportunities — and I mean things like outdoor sports, skiing, hiking, etc.

Colorado is a recreational mecca. Again, I mean physical activity here. Don't get my words twisted.

4. Focus on developing underdeveloped areas in an attempt to balance lifestyle and affordability.

To be fair, I'm not exactly sure what this means. But I feel like our own I-25 corridor is a good example. Know how certain interchanges that used to be fields now have vast shopping centers? Rather than building "up" in already dense areas, Colorado has plenty of room to grow "out" to areas that previously had nothing. I'm not an economist, but that, to me, would contribute to why it's getting more expensive.

5. The tourism industry — we live where people want to visit.

Sometimes you have to pinch yourself. Do you ever think, "How great is it I get to live where millions of people come every year on vacation?" And when they do, they dream about what it must be like to live here. Then move here. And that's why it's getting expensive.

6. Our sports teams — no, really, I'm not kidding!

It was widely reported back in the 20-teens that due to the Broncos' exposure to the national TV audience, thanks to their success and Peyton Manning's marketability, the state was on a grand stage that showcased our natural beauty and robust lifestyle. A LOT of people moved here during that time, and it's thanks in no small part to the marketing we receive from our teams. The Avs and Nuggets also contribute to that, with their success over the years. The Rockies did not make this list.

7. You can't spell Colorado without "rad."

It's just better here. You pay for a premium, and that's why.