The Most Affordable Places to Live in Colorado
Colorado’s beauty and lifestyle come with a cost, but several communities across the state still offer below-average expenses for housing, utilities, groceries, and day-to-day living. With Colorado’s average annual cost of living sitting around $63,781 and the state’s median salary just over $56,700, affordability matters more than ever. Housing plays an especially big part: the state’s median home price is now $627,400, far above the national median of $410,800. For Coloradans looking to stay within their means, these cities and towns offer some of the best opportunities to save.
Cimarron Hills
Cimarron Hills offers housing costs that land well below both state and national averages. Home prices in the area hover around $333,300, nearly half the state median. Renters also benefit — the typical rent of $1,439 keeps most residents under the recommended 30% income threshold. While utilities and miscellaneous expenses push the overall cost of living slightly above the national average, Cimarron Hills remains 8.5% cheaper than the Colorado average, making it significantly more affordable than many Front Range communities.
Cañon City
With some of the best natural amenities in southern Colorado, Cañon City also delivers measurable cost savings. The overall cost of living runs 14% below the Colorado average, with individual living expenses around $2,539 per month. Home prices average about $300,000, and rent for a one-bedroom sits near $1,400, which is lower than both the Colorado and national medians. Even though some utilities and healthcare costs exceed national norms, Cañon City still proves more affordable than many cities statewide.
Pueblo
Pueblo stands out for its lower cost of essentials, including electricity, which averages $202 per month, far below the Colorado average of $296. Grocery costs also stay lower than in many Colorado cities, saving residents nearly $1,000 per year. With a median rent of $1,000 and median home prices around $283,136, Pueblo remains affordable despite its median household income of $55,305 being below the national average. Renters in Pueblo save more than $9,000 per year compared to the state median rent.
Green Mountain Falls
Green Mountain Falls boasts an overall cost of living 2% below the national average, with utilities offering major savings — 23% lower than U.S. norms. Natural gas rates run nearly a third below the national average, and water/sewer prices also fall below national benchmarks. While housing data is limited, the town’s inexpensive utilities make it a standout for cost-conscious residents.
Northeast Colorado Springs
Although Colorado Springs as a whole trends slightly above national living costs, Northeast Colorado Springs stands out as a far more affordable pocket within the city. Housing is the biggest advantage — median home prices sit at $288,939, well below both state and national medians. Rent, averaging $1,435, also beats state and national typical costs. The area additionally scores high for safety, earning a rating 73% better than the rest of Colorado Springs.
Old Colorado City
While Colorado Springs’ overall housing prices continue to climb, Old Colorado City offers one of the region’s most affordable alternatives. With a median home price of $278,959 and rent around $1,126, the neighborhood beats both state and national medians by a wide margin. Utilities and groceries also cost slightly less than national averages, giving residents additional breathing room each month.
Trinidad
Trinidad remains one of the most budget-friendly cities in Colorado, with a cost of living 18% below the national average. Median home prices average $210,000, and rents hover around $894, offering some of the lowest housing costs in the state. A single person can expect to spend about $2,533 per month, far below the national average consumer expenditure of $6,440, making Trinidad a standout for affordability both locally and nationwide.
Alamosa
Alamosa boasts some of the lowest housing costs in Colorado, with median home prices around $195,000 and median rent at $881. Its overall cost of living index is 20% under the U.S. average, and essential expenses — including groceries, utilities, and energy — are significantly cheaper than state norms. Electricity averages just $107.54 per month, saving residents nearly $2,300 per year compared with the Colorado average.
Walsenburg
Walsenburg offers one of the most dramatic affordability gaps in the state. Living costs here run about 35% lower than the Colorado average, while median rent sits at a very low $723. Homebuyers benefit too: the median sale price of $185,000 is tens of thousands below national averages and hundreds of thousands below Colorado’s. Groceries run slightly below national levels, and utilities come in 6% cheaper than the U.S. average, helping offset costs like transportation and healthcare.
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