D
30%
Overall NAT. AVG.
6%
Goods & Services NAT. AVG.
96%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Lakewood Colorado National
Cost of living130111100
Goods & Services106104100
Groceries105101100
Health care99100100
Housing196134100
Transportation104105100
Utilities8591100

An Overview of Cost of Living in Lakewood, CO

Are you thinking about relocating, but curious about the potential cost of living in Lakewood? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Lakewood stands at 130, making it 30% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you value affordability in your search for a new place to live, Lakewood may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Lakewood falls into this category, which may not align with your desire for an affordable place to call home.

When it comes to the cost of living in Lakewood, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 96.1% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Lakewood?

Nobody knows their city better than the people who actually live there. So, we asked 8 local residents how they would rate the cost of living in Lakewood and this is how they responded. 25% of people said that the cost of living was affordable, with prices decreasing, while 75% of people said that the cost of living was very expensive and prices continue to rise.

Is Lakewood Affordable?

Is Lakewood an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Lakewood is 115.6% higher than the national average, while the average monthly rent prices are 50.7% higher than average. The affordability of any location can also be influenced by median income levels. Lakewood has a median household income of $71,233, which is 28.8% higher than the national average.

What Factors can Influence the Cost of Living in Lakewood?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Lakewood comes in at 15% lower than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Lakewood, is 96.1% higher than the national average.

Where is the Data From?

The Lakewood cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Lakewood is 17% higher than the Colorado average
  • The cost of living in Lakewood is 30% higher than the national average
  • Lakewood housing is 96% higher than the national average
  • Colorado general sales tax is 43% lower than the national average
  • Colorado state income tax is 95% higher than the national average

Most Affordable Places to Live in and Around Lakewood

See all the best places to live around Lakewood

Compare Lakewood, CO Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$93,942$7,829$2,192$2,819
      Renters$51,266$4,272$1,196$1,538
      The affordability of the housing market in Lakewood, CO as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Lakewood homeowners, the median income is $93,942. This indicates that a monthly maximum of $2,192 should be spent by homeowners on all housing related costs. Renters have a median income of $51,266. This indicates that renters would have a maximum of $1,196 for their rent related monthly costs.

      Colorado Sales Tax

      State General Sales Tax With Max Surtax
      Colorado 2.9% 10%

      Colorado Income Tax

      State Income Tax (Low) Income Tax (High)
      Colorado 4.4% 4.4%

      Goods & Services

      Item Lakewood National avg. Difference
      Haircut $26.81$24.2610.5%
      Beauty Salon $50.45$45.5610.7%
      Toothpaste $3.70$3.700.1%
      Shampoo $1.27$1.281.1%
      Movie $14.70$12.1321.1%
      Bowling $21.40$18.0018.9%

      Groceries

      Item Lakewood National avg. Difference
      Ground Beef $5.23$5.8410.4%
      Fried Chicken $1.40$1.5711.2%
      Milk $4.74$4.671.4%
      Potatoes $4.30$4.9312.9%
      Pizza $12.87$12.096.5%
      Beer $10.67$10.412.5%

      Health Care

      Item Lakewood National avg. Difference
      Optometrist $121.38$125.683.4%
      Doctor $116.64$135.7814.1%
      Dentist $126.27$113.2911.5%
      Ibuprofen $10.88$10.652.1%
      Lipitor $447.94$468.604.4%

      Housing

      Item Lakewood National avg. Difference
      Home Price $398,200.00$184,700.00115.6%
      Avg. Mortgage Payment $3,151.90$2,346.6934.3%
      Apartment Rent $1,430.00$949.0050.7%

      Transportation

      Item Lakewood National avg. Difference
      Gasoline $3.67$3.465.9%
      Tire Balancing $60.05$59.920.2%

      Utilities

      Item Lakewood National avg. Difference
      All Electricity $145.02$193.9925.2%
      Phone $194.36$192.251.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Glendale CDP, CO781022.3%
      Lakeside, CO68514.8%
      Federal Heights, CO13,537919.4%
      North Washington, CO663954.5%
      Coal Creek town, CO308990.5%
      Lakewood, CO155,73313030.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Clarksville, TN156,092954.9%
      Salinas, CA156,17714747.2%
      Hollywood, FL153,83411616.2%
      Lancaster, CA157,69712524.9%
      Springfield, MA153,6771022.1%
      Lakewood, CO155,73313030.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.