Straddling the Rocky Mountains, Colorado sits squarely in the Mountain West region of the United States. Anchored by its capital city of Denver, Colorado has a thriving economy and natural beauty that draws people to live there. Colorado also features a diverse number of different types of locations, including quaint and picturesque rural villages, ultra-exclusive ski towns, and everything in between.
Colorado’s overall cost of living factor is 105.5, which means that the cost of living in the Centennial State is 5.5% higher than the national average. Still, there is a wide range of cost of living throughout the state, and many areas that are quite affordable. Additionally, residential property taxes in Colorado are among the lowest in the country, which can be a big help if you are planning on purchasing a home.
Best Places to Live in Colorado
You might think of Colorado as just Denver and super-exclusive mountain resorts like Aspen or Breckenridge, but the truth is that there are lots of different places to live in Colorado. You have the Air Force Academy in Colorado Springs, other medium-sized cities like Aurora, Boulder, and Fort Collins, and plenty of old mining towns like Leadville and Silverton. No matter what you’re looking for, you’re likely to find an option somewhere in Colorado.
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Best Affordable Places to Live in Colorado
First, take a look at some of the best overall affordable places to live in Colorado, where your budget can stretch farther.
1. Colorado Springs
Home to the United States Air Force Academy, Colorado Springs is Colorado’s 2nd most populous city behind Denver. Nestled at the eastern foot of the Rocky Mountains, you’ll have easy access to Pikes Peak and the remarkable natural setting known as the Garden of the Gods. You’ll also enjoy the Colorado Springs Labor Day Lift Off, an annual hot air balloon festival hosted in the city’s Memorial Park. Some stats to review:
- Population: 486,248
- Median Household Income: $71,957
- Cost of Living: 105.0
- Median Rent Price: $1,895
- Home Price-to-Income Ratio: 6.23
- Average Property Tax: 0.55%
Housing Affordability: Both the median rent price and home price-to-income ratio in Colorado Springs are around the national average. The cost of living in Colorado Springs is about 5% above the national average, which puts it right around the overall cost of living in Colorado.
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2. Fort Collins
Home to Colorado State University, Fort Collins has a lot of the charm of a college town with amenities of a larger city. The Old Town historic district features a vintage trolley as well as houses dating back to the 1800s. If you’re looking to explore the great outdoors, Horsetooth Mountain Open Space is nearby, featuring the distinctive Horsetooth Rock formation and Horsetooth Falls. While it can be pricey to own a home here, renting is more affordable for those who want to experience all Fort Collins has to offer.
- Population: 169,249
- Median Household Income: $72,932
- Cost of Living: 116.7
- Median Rent Price: $2,195
- Home Price-to-Income Ratio: 7.6
- Average Property Tax: 0.65%
Housing Affordability: The cost of living in Fort Collins is above the average cost of living in Colorado, with the home price-to-income ratio at about 7.6. That means that the median home price in Fort Collins is more than seven times the median household income, which could make it challenging to purchase a home. Renting, however, can be a viable option.
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3. Sterling
Another of the best affordable places to live in Colorado: Sterling, which is the largest city and county seat of Logan County in the state’s northeastern corner. You can visit the Overland Trail Museum, which commemorates the western migration of gold miners and early pioneers. North Sterling Reservoir State Park sits along the South Platte River just north of town.
- Population: 13,102
- Median Household Income: $41,234
- Cost of Living: 80.8
- Median Rent Price: $750
- Home Price-to-Income Ratio: 5.9
- Average Property Tax: 0.54%
Housing Affordability: The overall cost of living in Sterling is quite low, including a median rent price of only $750. The home price-to-income ratio is also close to the national average, which means that it may be easy to buy a home, even for a first-time homebuyer.
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4. Pueblo
Pueblo sits at the confluence of the Arkansas River and Fountain Creek, about 100 miles south of Denver. The Historic Arkansas Riverwalk sits in downtown, commemorating the former course of the river before its course was altered after a major flood in 1921. There’s a thriving food scene and, as you might expect, plenty of outdoor activities.
- Population: 111,456
- Median Household Income: $46,766
- Cost of Living: 97.2
- Median Rent Price: $1,250
- Home Price-to-Income Ratio: 6.19
- Average Property Tax: 0.72%
Housing Affordability: Housing is relatively affordable in Pueblo, close to or below the national average. The overall cost of living in Pueblo is also below average, which can make it an attractive place to live, especially if you compare the cost of living by state to other possibilities.
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5. Littleton
Littleton is a suburb of Denver that is located in three different counties — Arapahoe, Douglas and Jefferson, though it is the county seat of Arapahoe County. The city dates back to the 1859 Pike’s Peak Gold Rush when miners and others first came to the area. Roxborough State Park and Chatfield State Park are two nearby options for nature lovers. There are also an array of restaurants and coffee shops, giving the town an urban-meets-suburban feel.
- Population: 44,755
- Median Household Income: $82,997
- Cost of Living: 110.5
- Median Rent Price: $2,200
- Home Price-to-Income Ratio: 8.33
- Average Property Tax: 0.68%
Housing Affordability: As part of the larger Denver metropolitan area, Littleton does have a cost of living that is above average. The median home price is higher than the national average, but so is the median household income.
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Best Places to Live in Colorado for Families
Curious about the best places to live in Colorado for families? These five towns can be great home bases.
1. Federal Heights
Federal Heights is a city in Adams County, on the north side of the Denver metropolitan area. Families make up 65% of the population. Residents can visit Water World, one of the country’s largest water parks as well as the Westminster Castle, in addition to all of the amenities that come with being part of Colorado’s largest metro area.
- Population: 14,001
- Median Household Income: $51,708
- Cost of Living: 109.7
- Median Rent Price: $1,511
- Home Price-to-Income Ratio: 8.03
- Average Property Tax: 0.78%
Housing Affordability: Housing can be quite affordable in Federal Heights, with renters paying a median of $1,511, which is below the national average. However, homeownership can be a steeper challenge, though first-time homebuyer programs in Colorado may help with that.
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2. Greeley
Greeley is the largest city and county seat of Weld County, to the north of the Denver area and near Fort Collins. The city is named after Horace Greeley, who popularized the phrase “Go West, young man”. Approximately two-thirds of households in Greeley are families, who can enjoy cultural activities, like those found at the Union Colony Civic Center, which is one of the largest performing arts venues in Colorado.
- Population: 109,209
- Median Household Income: $60,601
- Cost of Living: 104.3
- Median Rent Price: $1,350
- Home Price-to-Income Ratio: 6.9
- Average Property Tax: 0.64%
Housing Affordability: Housing can be fairly affordable in Greeley, with a median rent price below the national average. The home price-to-income ratio is somewhat above the national average, though, meaning it can take longer to afford a place that you own.
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3. Littleton
Making its second appearance on this list, Littleton is the county seat of Arapahoe County, on the southern edge of the Denver metropolitan area. Local families appreciate its outstanding school district. Outdoors lovers can take advantage of the Chatfield Reservoir and South Platte Park and Carson Nature Center, not to mention the Rocky Mountains not far away.
- Population: 44,755
- Median Household Income: $82,997
- Cost of Living: 110.5
- Median Rent Price: $2,200
- Home Price-to-Income Ratio: 8.33
- Average Property Tax: 0.68%
Housing Affordability: Housing and the overall cost of living can be above average in Littleton, focusing on both the median rent price and home price-to-income ratio. However, Littleton residents earn a higher than average income, which may help them afford life in this desirable area.
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4. Centennial
Centennial is another city in the Denver metropolitan area. It’s a fairly dense suburban area, with plenty of shops, cafes, and restaurants for families to visit. Parents will like its highly rated public school system. It also boasts the multi-acre Centennial Center Park, where kids and parents alike can enjoy the fresh air Colorado is famous for.
- Population: 105,865
- Median Household Income: $114,375
- Cost of Living: 110.5
- Median Rent Price: $2,750
- Home Price-to-Income Ratio: 5.66
- Average Property Tax: 0.68%
Housing Affordability: While the median home price is higher than the national average, the median household income is also above the average. That puts the home price-to-income ratio right around the national average. Following our tips to qualify for a mortgage can help you find the place you’re looking for.
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5. Arvada
Located in the northwestern suburbs of Denver, Arvada is another large city in the Denver metropolitan area. Arvada is the seventh most populous city in all of Colorado, and sits nestled in the foothills of the Rocky Mountains. Both the Colorado Railroad Museum and Eldorado Canyon State Park are located in Arvada.
- Population: 121,581
- Median Household Income: $96,677
- Cost of Living: 110.5
- Median Rent Price: $2,250
- Home Price-to-Income Ratio: 6.3
- Average Property Tax: 0.61%
Housing Affordability: The median home price and median household income are both higher than the national average in Arvada. Still, since it’s a rather large city, there is likely to be a wide range of housing options available. Starting your housing journey with a mortgage prequalification or preapproval can be a great first step.
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Best Places to Live in Colorado for Young Adults
For young adults, a vibrant job market and plenty of activities (including nightlife) are often key considerations, along with affordability. Here are some possibilities given the cost of living in Colorado.
1. Castle Rock
Castle Rock is the largest city in and the county seat of Douglas County, located on Interstate 25 between Denver and Colorado Springs. Because of its central location, residents and visitors can take part in all of the amenities of both Colorado Springs and Denver. That can spell job opportunities as well as all kinds of fun experiences to savor.
- Population: 80,191
- Median Household Income: $121,388
- Cost of Living: 110.5
- Median Rent Price: $2,650
- Home Price-to-Income Ratio: 5.48
- Average Property Tax: 0.69%
Housing Affordability: Settled between two bigger metropolitan areas, Castle Rock shares some of the affordability concerns of its larger neighbors.
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2. Broomfield
In 2001, after years of annexations had stretched the city of Broomfield across four different Colorado counties (Adams, Boulder, Jefferson, and Weld), the citizens of Broomfield became Colorado’s newest and smallest county. The hybrid city-county government allows better coordination of city services, and the newness of the area can mean career opportunity.
- Population: 76,121
- Median Household Income: $107,570
- Cost of Living: 110.5
- Median Rent Price: $2,750
- Home Price-to-Income Ratio: 6.01
- Average Property Tax: 0.81%
Housing Affordability: Located in the Denver metropolitan area, the city and county of Broomfield has housing affordability that is fairly consistent with the rest of the metro area, meaning it’s not so cheap. Still, with many different types of mortgage loans available, you’ve got a great opportunity to find something that fits your specific financial and life situation.
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3. Arvada
Another great place to live in Colorado in the Denver metro area is Arvada. Arvada is located in northwestern Denver and backs up to the foothills of the Rockies. It’s among the best affordable places to live in Colorado for young professionals thanks to its recreation and arts and culture options. Check out the historic Olde Town Arvada, or visit The Cussler Museum, the Arvada Center for Arts and Humanities, or Two Ponds National Wildlife Refuge.
- Population: 121,581
- Median Household Income: $96,677
- Cost of Living: 110.5
- Median Rent Price: $2,250
- Home Price-to-Income Ratio: 6.3
- Average Property Tax: 0.61%
Housing Affordability: Housing and overall affordability in Arvada mirrors that of the Greater Denver area. With a median rent price and home price-to-income ratio around the state’s average, you’re likely to be able to find something in Arvada that fits your budget.
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4. Highlands Ranch
Highlands Ranch is a census-designated place in the southwestern suburbs of the Denver metropolitan area. It’s highly rated for job opportunities and growth, and residents say there are plenty of trails, cafes, and nightlife to keep them happy.
- Population: 103,444
- Median Household Income: $134,041
- Cost of Living: 110.5
- Median Rent Price: $2,975
- Home Price-to-Income Ratio: 5.3
- Average Property Tax: 0.69%
Housing Affordability: The median household income in Highlands Ranch is quite high, which does somewhat correspond with an increased median rent price and median home price. Still, depending on your income, overall financial situation and budget, you may be able to find affordable housing in Highlands Ranch.
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5. Boulder
Home to the University of Colorado Boulder, Boulder is the eponymous county seat of Boulder County, located about 25 miles northwest of Denver. It has excellent employment opportunities, with the university being one of the city’s largest employers. Boulder also features a vibrant and eclectic nightlife, including dance clubs, bars, and breweries. The Pearl Street Pedestrian Mall located in Downtown Boulder is a common attraction, along with the Boulder Philharmonic Orchestra and Boulder Canyon.
- Population: 105,485
- Median Household Income: $74,902
- Cost of Living: 142.5
- Median Rent Price: $3,000
- Home Price-to-Income Ratio: 13.23
- Average Property Tax: 0.63%
Housing Affordability: Boulder offers considerable opportunity but it is a fairly expensive city to live in, with overall cost of living as well as home prices well above the national average. If you’re looking to buy a house in Boulder or Boulder County, you may want to take advantage of some of the first-time homebuyer programs in Colorado. Or you might join the ranks of renters starting their working lives more affordably in Boulder.
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Best Places to Live in Colorado for Retirees
Wondering about the best affordable places to live in Colorado for retirees? These towns offer a lifestyle and price tag that many older residents appreciate.
1. Littleton
Yes, Littleton is on the list again. Another suburb of Denver, Littleton sits along the South Platte River, near Cooley Lake and the Chatfield Reservoir. Littleton is only a few miles east of the Front Range of the Rocky Mountains, providing plenty of opportunities for hikes and mountain vistas. It also features the Centennial at Riverwalk 55+ active adult community and easy access to all of the urban offerings and healthcare resources in the Denver metro area.
- Population: 44,755
- Median Household Income: $82,997
- Cost of Living: 110.5
- Median Rent Price: $2,200
- Home Price-to-Income Ratio: 5.69
- Average Property Tax: 0.68%
Housing Affordability: While the median household income is above the national average, the median home price in Littleton is significantly above the national average. That leads to a home price-to-income ratio of 5.69, which is higher than in other places.
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2. Montrose
More than one out of four residents of Montrose is age 65 or older. The eponymous county seat of Montrose County, the city of Montrose lies in southwestern Colorado. Black Canyon of the Gunnison National Park is just to the east of town, and you can also visit the Montrose Botanic Gardens or the Museum of the Mountain West. The town also is recommended as a good place to retire thanks to such factors as its access to healthcare and attractions, as well as its excellent farmers markets.
- Population: 21,003
- Median Household Income: $54,260
- Cost of Living: 94.5
- Median Rent Price: $1,761
- Home Price-to-Income Ratio: 7.9
- Average Property Tax: 0.41%
Housing Affordability: Although housing prices may be rising, the average property tax in the county is often much lower than you’ll find in other cities in Colorado. This can be a factor if you are pursuing a mortgage preapproval process as it can help keep your overall monthly costs down.
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3. Estes Park
Estes Park is a town in northern Colorado, perhaps best known as the gateway to Rocky Mountain National Park. In addition to the hiking and skiing that is available nearby, you can also take the Estes Park Aerial Tramway from town up to the top of Prospect Mountain, providing a breathtaking mountain vista. After spending time in nature, there are a good number of restaurants and coffee shops to try.
- Population: 5,862
- Median Household Income: $56,166
- Cost of Living: 114.5
- Median Rent Price: $2,400
- Home Price-to-Income Ratio: 12.39
- Average Property Tax: 0.65%
Housing Affordability: As is the case with many of the mountain ski towns in Colorado, housing is fairly expensive in Estes Park. The rugged natural beauty combined with a limited supply help to drive prices up. Much depends on whether you want to buy or rent. It can be hard to purchase a home without a large budget. You may want to consider a mortgage refinance to help access equity in another home to help you buy in Estes Park. However, rentals have seen a considerable drop of more than $1,000 a month year over year, so that might offer retirees a good option.
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4. Cañon City
One of the few cities in the country that officially have a tilde over the N, Cañon City is typically pronounced “canyon”, which makes sense given its proximity to the Royal Gorge, a large canyon on the Arkansas River. Cañon City which sits southwest of Colorado Springs at the base of the Rocky Mountains, hosts numerous festivals during the year, making it an exciting home base for retirement. Also, the Cañon City Downtown Historic District is listed on the National Register of Historic Places and can be fun to explore.
- Population: 17,258
- Median Household Income: $52,648
- Cost of Living: 82.5
- Median Rent Price: $1,395
- Home Price-to-Income Ratio: 6.31
- Average Property Tax: 0.41%
Housing Affordability: It is fairly affordable to live in Cañon City, with the median rent price, overall cost of living and average property tax all being below the national average. This can make taking out and qualifying for home mortgage loans easier than it might be in other locations.
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5. Englewood
An inner-ring suburb of Denver, Englewood is located directly south of Denver, which makes it convenient to access all of the amenities of its larger neighbor. Within Englewood, you can hike along the South Platte River Trail or Bear Creek Trail, or visit the free Museum of Outdoor Arts.
- Population: 33,642
- Median Household Income: $72,193
- Cost of Living: 108.6
- Median Rent Price: $2,195
- Home Price-to-Income Ratio: 5.39
- Average Property Tax: 0.68%
Housing Affordability: Housing in Englewood is about as affordable as it is in other parts of Colorado and the Denver metro area, comparable to the national average. This can make it one of the best places to live in Colorado for retirees who want to keep costs down.
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Best Places to Live in Colorado Near the Mountains
This Rocky Mountain state can be a nature lover’s paradise. Here are some of the best affordable places to live in Colorado near the mountains.
1. Grand Junction
Grand Junction is known for its splendid location and outdoor activities. There are rivers for fishing, kayaking, and rafting, plus amazing cliffs and mountains to explore. There’s the Colorado Monument as well as the Grand Mesa nearby. Since it’s a college town, Grand Junction also offers an array of restaurants, concerts, and other fun activities.
- Population: 68,034
- Median Household Income: $58,892
- Cost of Living: 96
- Median Rent Price: $1,550
- Home Price-to-Income Ratio: 6.51
- Average Property Tax: 0.51%
Housing Affordability: While owning a home isn’t exactly cheap, it can be an affordable option for many, especially with reasonable property taxes. Also, the rental market is well-priced.
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2. Gunnison
Gunnison is located in the heart of the Rocky Mountains in southwestern Colorado. Blue Mesa Reservoir, the largest lake in Colorado, lies just to the west of town, a part of the Curecanti National Recreation Area. There is lots to do outdoors in Gunnison, including hiking, fishing, biking and whitewater rafting.
- Population: 6,794
- Median Household Income: $46,324
- Cost of Living: 102.0
- Median Rent Price: $1,750
- Home Price-to-Income Ratio: 11.9
- Average Property Tax: 0.36%
Housing Affordability: Buying a home in Gunnison is not cheap right now, but the market has seen significant shifts, which could mean a bargain is available. If you want to purchase a home in Gunnison, you can take advantage of learning from a home loan help center to help you navigate the home-buying process. Another option: renting, which can be reasonably priced.
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3. Leadville
Leadville is the largest city and county seat of Lake County, located squarely in the Rocky Mountains. Leadville is situated at an elevation of 10,158 feet, meaning you’ll want to make sure that you have adjusted to the altitude. Downtown Leadville is listed on the National Register of Historic Places, and you’ll also have easy access to Mount Elbert and Mount Massive, the two tallest mountains in Colorado.
- Population: 2,633
- Median Household Income: $70,469
- Cost of Living: 94.8
- Median Rent Price: $1,895
- Home Price-to-Income Ratio: 6.48
- Average Property Tax: 0.55%
Housing Affordability: As with most of Colorado’s mountain towns, buying or renting a house in Leadville can be fairly expensive. However, the overall cost of living and average property tax amounts are below average, which helps to mitigate some of the pain of expensive housing.
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4. Silverton
As its name might suggest, the town of Silverton has its roots in the silver mining rush of the late 19th century. Located in a remote part of the San Juan Mountains (a range of the Rocky Mountains), you can ride the historic Durango and Silverton Train, one of the most famous narrow-gauge railroads in the country. Visitors also can check out the One Hundred Gold Mine Tour, and of course, plenty of skiing.
- Population: 638
- Median Household Income: $64,167
- Cost of Living: 93.3
- Median Rent Price: $2,999
- Home Price-to-Income Ratio: 7.22
- Average Property Tax: 0.24%
Housing Affordability: The overall cost of living, average property tax and median rent in Silverton are below average, but the home price-to-income ratio is quite high. This may be mostly due to the relatively low median household income, so if your income is high, you may still be able to find a relatively affordable place to live.
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5. Montrose
Montrose hits this list again, this time as an affordable mountain town. This historic town is located on the western side of the Rocky Mountains, and it has won honors as a top town for outdoor activities. Hiking, rafting, rock climbing, snowmobiling, and fishing are among the options.
- Population: 21,003
- Median Household Income: $54,260
- Cost of Living: 94.5
- Median Rent Price: $1,761
- Home Price-to-Income Ratio: 7.9
- Average Property Tax: 0.41%
Housing Affordability: Housing prices aren’t exactly cheap in Montrose. You might have to use a jumbo mortgage loan to afford purchasing one. However, the price tag can be somewhat offset by those lower than average property taxes. In addition, renting in Montrose can be affordable.
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The Takeaway
No matter what you are looking for, you’re likely to find something that fits your criteria in Colorado. While the overall cost of living in Colorado is slightly higher than the national average, there is a wide range in affordability throughout the state. Generally, the more rural areas will have the lowest cost of living, while urban areas (like Denver) and mountain towns have the highest cost of living.
If you’re looking for the best place to live in Colorado, make sure to first determine what amenities are most important to you. Then, take a look at your budget and compare different cities to find the best one for your specific situation. When you’re ready to start shopping, finding the right mortgage can be an important step.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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