In a state known for its soaring mountains, clean air, and endless outdoor recreation, the cost of living has climbed just as steeply.
According to a new 2025 SmartAsset study, a single adult in Colorado now needs to make at least $105,955 per year to live comfortably. That figure jumps to a staggering $273,728 for a family of four—a far cry from the state’s median household income, which hovers just above $87,000.
What Does “Comfortable” Mean?
SmartAsset based its study on the 50/30/20 rule—a widely cited budgeting principle:
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50% for necessities (housing, food, transportation, insurance, etc.)
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30% for discretionary spending (dining, hobbies, travel, etc.)
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20% for savings or debt repayment
The idea is not to simply get by, but to live with stability, flexibility, and some room to breathe financially. The study adjusted for cost of housing, transportation, healthcare, food, and taxes across all 50 states.
“This isn’t luxury living,” said Susanna Bell, a Denver-based financial planner. “It’s simply what it takes to maintain financial health and avoid living paycheck to paycheck in 2025 Colorado.”
Colorado Among the Most Expensive States
Colorado ranks 9th nationally in income required for comfort, sitting just behind Washington and Oregon. Here’s how the top 10 stack up:
| Rank | State | Required Income (Individual) |
|---|---|---|
| 1 | Hawaii | $112,411 |
| 2 | Massachusetts | $111,516 |
| 3 | California | $110,975 |
| 4 | New York | $108,432 |
| 5 | Washington | $107,951 |
| 6 | Oregon | $106,310 |
| 7 | Maryland | $106,200 |
| 8 | Alaska | $106,001 |
| 9 | Colorado | $105,955 |
| 10 | Connecticut | $104,650 |
The high cost of housing is a major driver behind Colorado’s position. The median home price statewide is over $550,000, and rental prices continue to climb in both urban centers like Denver and mountain towns such as Aspen, Vail, and Durango.
Families Feeling the Squeeze
While six figures may sound reasonable for a dual-income household, SmartAsset’s data reveals just how quickly costs add up for families with children.
A family of four in Colorado needs an annual income of $273,728 to maintain financial comfort under the 50/30/20 framework.
“That includes childcare, food, car payments, healthcare premiums—these are all rising faster than wages,” said Bell. “Even high-earning households can feel stretched.”
Example Family Budget (Colorado – Family of 4, $273,728 income):
| Category | Annual Amount | Monthly |
|---|---|---|
| Necessities (50%) | $136,864 | $11,405 |
| Wants (30%) | $82,118 | $6,843 |
| Savings/Debt (20%) | $54,746 | $4,562 |
A Tale of Two Colorados
Despite the headline numbers, the reality varies dramatically depending on where you live. In places like Grand Junction, Pueblo, or Greeley, costs may be notably lower than in Boulder, Denver, or mountain resort towns.
“I live in Montrose and there’s no way I make that kind of money,” said John Salazar, a self-employed contractor. “But I don’t carry debt, and I grow my own food. Comfort depends on how you live—not just your income.”
Even so, experts warn that residents relying on frugality alone may not be setting themselves up for long-term stability.
“Cutting corners helps,” Bell added, “but it can’t replace savings, investments, or the ability to absorb shocks—like a medical emergency or job loss.”
The Bigger Picture: Inflation, Housing, and Wage Growth
Colorado’s rising cost of living reflects broader national trends. Although inflation has eased from its 2022–2023 peak, many categories remain stubbornly expensive.
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Housing: Mortgage rates are still hovering above 6.5% in mid-2025.
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Childcare: Colorado ranks in the top 15 for childcare costs nationally.
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Utilities & Transportation: Increasing utility surcharges and higher vehicle insurance rates are burdening households.
Meanwhile, wage growth is uneven across industries. Tech and healthcare sectors are seeing strong gains, while education, hospitality, and public service wages remain relatively stagnant.
Not Everyone Is There Yet
The average per capita income in Colorado is just over $47,000 according to recent Census estimates—less than half of what SmartAsset says is needed for individual comfort.
“This study highlights how quickly our economic baseline is shifting,” said Ana Gutierrez, a professor of economics at Colorado Mesa University. “It’s not just about inflation—it’s about whether income and infrastructure are keeping up.”
The Takeaway
The idea of comfort is changing—and so is what it costs.
For Coloradans, especially those raising families or living in urban and mountain regions, the six-figure threshold is no longer a luxury—it’s the new normal.
But for others, especially in smaller towns or those with low overhead, comfort may still be achievable through lifestyle, community support, and careful financial planning.
