Last updated: February 2026 | Data sourced from BLS, Numbeo, BestPlaces, Zillow, and Colorado Department of Revenue
Overall Cost of Living Index: Denver Metro vs. National Average
The cost of living index uses 100 as the national baseline. Any score above 100 means that category is more expensive than the U.S. average.
(National Avg = 100)
(National Avg = 100)
(National Avg = 100)
(National Avg = 100)
| Category | South Denver | National Avg | Colorado Springs | Boulder | Fort Collins |
|---|---|---|---|---|---|
| Overall | 108 | 100 | 96 | 128 | 110 |
| Housing | 170 | 100 | 110 | 210 | 155 |
| Groceries | 101 | 100 | 98 | 105 | 101 |
| Utilities | 97 | 100 | 95 | 93 | 96 |
| Transportation | 105 | 100 | 98 | 104 | 100 |
| Healthcare | 104 | 100 | 101 | 107 | 103 |
Housing Costs in South Denver
Housing is by far the biggest cost driver in South Denver. Median home prices across the area’s key communities range from the mid-$500s to the high-$600s — and some neighborhoods in Cherry Hills Village and Castle Pines run well above $1 million. For a deeper dive into pricing by neighborhood, see our South Denver Home Prices guide.
Median Home Prices by Community (2025–2026)
| Community | Median Home Price | vs. National ($338,100) |
|---|---|---|
| Centennial | $614,800 | +81.8% |
| Littleton | $684,500 | +102.5% |
| Highlands Ranch | $640,000 | +89.3% |
| Denver (city proper) | $576,000 | +70.3% |
| Parker | $625,000 | +84.9% |
| Castle Rock | $585,000 | +73.0% |
| National Average | $338,100 | — |
Average Monthly Rent in South Denver
| Unit Type | South Denver Avg | National Avg | Difference |
|---|---|---|---|
| 1-Bedroom | $1,640 | $1,185 | +38.4% |
| 2-Bedroom | $1,910 | $1,430 | +33.6% |
| 3-Bedroom | $2,800 | $1,950 | +43.6% |
South Denver suburbs generally offer slightly lower rents than downtown Denver, with Centennial and Lone Tree trending $100–$200/month below city-center pricing for comparable units.
Utility Costs
Good news: utilities in South Denver actually run slightly below the national average. Colorado’s dry climate means lower cooling costs in summer, though heating bills spike during cold winter months (November–March).
| Utility | South Denver Monthly Avg | National Monthly Avg |
|---|---|---|
| Electricity | $85 | $130 |
| Natural Gas (heating) | $55 | $60 |
| Water / Sewer / Trash | $55 | $75 |
| Internet (60+ Mbps) | $70 | $65 |
| Mobile Phone Plan | $80 | $78 |
| Total Basic Utilities | $265 | $330 |
Xcel Energy serves most of South Denver for electricity and gas. Water providers vary by municipality — Aurora Water, Denver Water, and Centennial Water & Sanitation District are the most common.
Grocery Costs
Grocery costs in the Denver metro are essentially at the national average — about 1% above. King Soopers (Kroger), Safeway, Trader Joe’s, Costco, and Whole Foods are all well-represented across South Denver.
| Item | Denver Price | National Avg |
|---|---|---|
| Gallon of Milk | $3.94 | $3.78 |
| Dozen Eggs | $6.05 | $5.50 |
| Loaf of Bread | $3.75 | $3.50 |
| Chicken Breast (1 lb) | $6.35 | $5.80 |
| Ground Beef (1 lb) | $7.93 | $6.50 |
| Apples (1 lb) | $2.37 | $2.10 |
| Bananas (1 lb) | $0.88 | $0.65 |
| Rice (1 lb) | $2.90 | $2.25 |
Pro tip: King Soopers fuel points and Costco membership can save a South Denver family $150–$250/month on groceries compared to shopping exclusively at premium stores.
Transportation Costs
South Denver is primarily car-dependent, though the RTD light rail E and H lines connect key South Denver hubs (Lincoln Station, Dry Creek, Lone Tree) to downtown Denver.
| Transportation Item | South Denver | National Avg |
|---|---|---|
| Gallon of Gas | $3.15 | $3.25 |
| RTD Monthly Local Pass | $88 | — |
| RTD Monthly Regional Pass | $171 | — |
| Average Commute Time | 28 minutes | 27 minutes |
| Average Annual Car Insurance | $2,100 | $1,770 |
| Average Monthly Car Payment | $735 | $725 |
One advantage of living in South Denver versus downtown: parking is free almost everywhere. No meters, no garage fees, no $200/month parking passes that come standard in LoDo or Capitol Hill.
Healthcare Costs
Healthcare in the Denver metro runs about 4% above the national average. South Denver is well-served by major hospital systems including Sky Ridge Medical Center (Lone Tree), Littleton Adventist Hospital, and UCHealth Highlands Ranch.
| Healthcare Item | Denver Metro | National Avg |
|---|---|---|
| Doctor Visit (general) | $135 | $125 |
| Dentist Visit (cleaning) | $110 | $100 |
| Monthly Health Insurance Premium (individual, marketplace) | $420 | $390 |
| Prescription Drugs (generic, 30-day) | $15 | $14 |
Taxes in South Denver
Colorado’s tax structure is one of South Denver’s genuine advantages. The state has a flat 4.4% income tax (reduced from 4.55% in 2024), no estate or inheritance tax, and property taxes that are among the lowest in the nation.
| Tax Type | Rate / Amount | Notes |
|---|---|---|
| Colorado State Income Tax | 4.4% (flat) | Same rate for all income levels |
| Federal Income Tax | 10%–37% | Progressive brackets |
| Sales Tax (Centennial) | 8.25% | State 2.9% + Arapahoe Co. + city |
| Sales Tax (Littleton) | 8.0% | Varies by exact location |
| Sales Tax (Lone Tree) | 8.5% | Park Meadows mall area higher |
| Property Tax — Arapahoe County | ~0.50% | Effective rate on market value |
| Property Tax — Douglas County | ~0.49% | Among the lowest in the metro |
| Property Tax — Denver County | ~0.53% | Slightly higher than suburbs |
| Estate / Inheritance Tax | None | Colorado has neither |
Key insight: Colorado’s property tax rates are remarkably low compared to states like Texas (1.6%), Illinois (2.1%), or New Jersey (2.2%). On a $600,000 South Denver home, you’d pay roughly $3,000/year in property taxes — versus $9,600 in Texas or $13,200 in New Jersey for an equivalent home.
Childcare & Education Costs
Childcare is one of the most significant expenses for South Denver families. Colorado ranks among the top 10 most expensive states for daycare.
| Childcare / Education | South Denver Avg | National Avg |
|---|---|---|
| Infant Daycare (full-time, monthly) | $1,950 | $1,400 |
| Toddler/Preschool (full-time, monthly) | $1,600 | $1,150 |
| After-School Care (monthly) | $550 | $400 |
| Private K-8 Tuition (annual) | $12,000–$27,000 | $10,000–$22,000 |
| Private High School Tuition (annual) | $15,000–$35,000 | $12,000–$28,000 |
South Denver’s public schools are a bright spot: Cherry Creek School District, Littleton Public Schools, and Douglas County School District consistently rank among Colorado’s top districts, which is a major reason many families choose South Denver over other parts of the metro.
South Denver vs. Other Cities: Full Comparison
Thinking about relocating? Here’s how South Denver stacks up against popular comparison cities for people making a move in 2026:
| Category | South Denver | Austin, TX | Phoenix, AZ | Boise, ID | National Avg |
|---|---|---|---|---|---|
| Overall Index | 108 | 103 | 100 | 104 | 100 |
| Median Home Price | $615,000 | $475,000 | $420,000 | $460,000 | $338,100 |
| Avg Rent (2BR) | $1,910 | $1,650 | $1,500 | $1,400 | $1,430 |
| State Income Tax | 4.4% | 0% | 2.5% | 5.695% | Varies |
| Property Tax Rate | ~0.50% | ~1.60% | ~0.62% | ~0.63% | ~1.1% |
| Sales Tax | ~8.25% | ~8.25% | ~8.6% | ~6.0% | Varies |
| Avg Annual Temp | 51°F | 68°F | 75°F | 52°F | — |
| Sunshine (days/yr) | 300 | 228 | 299 | 206 | 205 |
The South Denver advantage: While Austin wins on income tax and Phoenix on housing costs, South Denver’s combination of low property taxes, 300 days of sunshine, top-rated schools, and access to world-class outdoor recreation creates a lifestyle package that’s hard to match at any price point.
Hidden Costs of Living in Denver
Beyond the standard cost of living categories, there are several Denver-specific expenses that most cost-of-living calculators miss:
Denver sits at 5,280 feet — and South Denver communities range from 5,400 to 6,200 feet. New residents often experience altitude sickness for 1–3 weeks. Budget for extra hydration supplies, potential doctor visits, and possibly reduced productivity during adjustment. Humidifiers are practically mandatory ($30–$150).
At altitude, UV radiation is 25% stronger than at sea level. You’ll go through sunscreen faster, need UV-protective sunglasses, and your car’s interior and paint will degrade faster. Many South Denver residents invest in ceramic window tint ($300–$600) and paint protection film. Annual skincare/dermatology costs run $200–$500 higher than sea-level cities.
Denver’s average humidity is just 30–40%. You’ll need whole-house humidifiers ($150–$500 + installation), extra moisturizer and lip balm year-round, and hardwood floors may require special maintenance. Nosebleeds are common for newcomers. Budget an extra $200–$400/year for dry-climate essentials.
While South Denver is not in the highest-risk wildfire zone, proximity to the foothills (especially in communities like Castle Rock and Castle Pines) can add $300–$1,200/year to homeowner’s insurance. After the 2021 Marshall Fire, premiums across the Front Range increased 15–30%.
Ski passes ($700–$950 for Ikon/Epic), camping gear, hiking equipment, mountain bikes, roof racks — Colorado’s outdoor lifestyle is amazing but not free. Budget $2,000–$5,000/year for recreational gear and activities that you will want to do once you’re here.
Is South Denver Worth the Cost?
After crunching all the numbers, here’s the honest assessment: South Denver is expensive compared to the national average, but delivers exceptional value for what you get.
What you get for the premium:
- Top-rated public schools — Cherry Creek, Littleton, and Douglas County districts save families $15,000–$30,000/year versus private school in other metros
- 300 days of sunshine — more than Miami, San Diego, or Honolulu
- World-class outdoor recreation — ski resorts 90 minutes away, hiking from your doorstep, 80+ miles of paved trails
- Low property taxes — saving $3,000–$8,000/year compared to Texas, Illinois, or the Northeast
- Strong job market — Denver metro unemployment consistently runs below national average; major employers include Lockheed Martin, Charles Schwab, Arrow Electronics, and a thriving tech sector
- No state estate tax — significant for long-term wealth building
- Safety — South Denver suburbs consistently rank among the safest communities in Colorado
- Community feel — established neighborhoods with excellent parks, libraries, and community events
Budget Breakdowns: What Your Salary Looks Like in South Denver
Here’s a realistic look at how different income levels play out for a family of four living in South Denver (assuming standard deductions, employer-sponsored health insurance, and a 30-year mortgage at 6.5%):
💰 $75,000/year — Tight but Possible (Renting)
| Expense | Monthly |
|---|---|
| Take-Home Pay (after federal + state tax) | $4,900 |
| Rent (2BR apartment) | -$1,800 |
| Utilities + Internet | -$265 |
| Groceries | -$650 |
| Transportation (1 car + gas + insurance) | -$700 |
| Healthcare (employer plan + copays) | -$250 |
| Childcare (1 child, preschool) | -$1,600 |
| Remaining | -$365 (deficit) |
At $75K, a family with childcare costs will struggle. Without childcare expenses, you’d have ~$1,235/month remaining — workable but tight. Renting in Castle Rock or southern areas can save $200–$300/month.
💰 $100,000/year — Comfortable Renting, Stretch to Buy
| Expense | Monthly |
|---|---|
| Take-Home Pay | $6,350 |
| Rent (3BR) or Mortgage ($400K home) | -$2,500 |
| Utilities + Internet | -$285 |
| Groceries | -$750 |
| Transportation (2 cars) | -$1,000 |
| Healthcare | -$300 |
| Childcare (1 child) | -$1,600 |
| Remaining | -$85 (barely breaking even) |
At $100K with childcare, it’s very tight. Without childcare, you’d have $1,515/month for savings, entertainment, and extras — a solid middle-class life.
💰 $150,000/year — Solid & Comfortable
| Expense | Monthly |
|---|---|
| Take-Home Pay | $9,100 |
| Mortgage ($550K home) | -$3,200 |
| Utilities + Internet | -$310 |
| Groceries | -$850 |
| Transportation (2 cars) | -$1,100 |
| Healthcare | -$350 |
| Childcare (1 child) | -$1,600 |
| Remaining | $1,690/month |
$150K is the sweet spot for South Denver family living. You can own a home in Centennial or Highlands Ranch, handle childcare, and still save for retirement and enjoy Colorado’s lifestyle.
💰 $200,000/year — Very Comfortable
| Expense | Monthly |
|---|---|
| Take-Home Pay | $11,800 |
| Mortgage ($700K home) | -$4,100 |
| Utilities + Internet | -$350 |
| Groceries | -$950 |
| Transportation (2 cars) | -$1,200 |
| Healthcare | -$400 |
| Childcare (2 children) | -$3,200 |
| Remaining | $1,600/month |
At $200K, you can own a spacious home in Cherry Hills Village, Castle Pines, or Lone Tree, cover two kids in daycare, and still invest significantly. This is the income level where South Denver truly shines.
Frequently Asked Questions
What is the cost of living in South Denver compared to the national average?
How much do you need to earn to live comfortably in South Denver?
What is the average rent in South Denver?
What is the median home price in South Denver?
Is South Denver cheaper than Boulder or downtown Denver?
What are property taxes like in South Denver?
How much does childcare cost in South Denver?
Is South Denver a good place to raise a family?
📦 Planning a Move to South Denver?
Get the complete playbook — neighborhoods, schools, commute times, and everything you need to know before making the move.
📋 Methodology & Data Sources
The data in this guide was compiled from the following sources in January–February 2026:
- Housing prices: BestPlaces.net, Zillow Home Value Index, Redfin market data
- Rental data: Numbeo.com, Zillow Rental Manager, Apartment List
- Grocery prices: Numbeo.com (user-submitted, 759 data points in past 12 months from 96 contributors)
- Utilities: Numbeo.com, Xcel Energy published rates
- Transportation: RTD Denver published fare schedules, AAA fuel gauge report
- Tax rates: Colorado Department of Revenue, Arapahoe County Assessor, Douglas County Assessor
- Healthcare: Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, Healthcare Bluebook
- Childcare: Numbeo.com, Care.com cost of care survey, Colorado Department of Human Services
- Cost of living indices: BestPlaces.net, C2ER (Council for Community and Economic Research)
“South Denver” in this guide refers to the communities south of Denver proper along the I-25 and C-470 corridors, including Centennial, Littleton, Englewood, Lone Tree, Highlands Ranch, Parker, Castle Rock, and Castle Pines. Individual community costs may vary.
This page is updated quarterly. Last update: February 2026.