What Is The Cost Of Living In Wyoming Vs. Colorado?

Cost of living is used to determine how expensive one place is versus another. As such, it is commonly one of the main factors people use to decide where they want to settle down. With its abundant outdoor recreation, low crime rate, level of authenticity, and numerous tax benefits, many view Wyoming as a more advantageous place to live than Colorado.

Though, there is still much to love about Colorado, as it also has numerous outdoor recreational opportunities, in addition to beautiful landscapes, and a booming economy. But, with each state’s unique attributes aside, how do they compare in terms of cost of living?

The cost of living index in Wyoming is 98.1, meaning it is about 2% more affordable to live in Wyoming than the national average (100). Colorado, on the other hand, has a cost of living index of 121.1, so it is significantly more expensive than both Wyoming and the national average. The median price of a home in Wyoming is $272,700, which is about 6.5% less than the national average of 291,700. Meanwhile, the median home price in Colorado is $488,600 – a staggering 79% higher than Wyoming.

Aside from median housing prices, let’s take a deeper look at how the cost of living compares in Wyoming vs. Colorado.

When you consider the fact that the median home price in Wyoming is around $273,000, it is more affordable to purchase a home here than in the state of Colorado. With Colorado’s median home price of close to $500,000 you’d be looking at spending almost double the amount for a home in Colorado compared to Wyoming.

As more people find Wyoming appealing, the competition for homes is increasing exponentially. Over the course of the last year, a lot of people have flocked into the state from bigger cities to enjoy the Wyoming way of life. This way of life includes tons of outdoor recreational opportunities and a conservative state government. In fact, politics is one of the main reasons why so many people are moving to Wyoming.

Being a largely rural state, Wyoming usually has a housing supply that is on the low end. However, inventory all across the state is now even lower and developers can’t build homes fast enough to meet the high demand. It’s predicted that home prices will continue to rise and the market won’t start to slow down until the interest rates go up.

Like Wyoming, Colorado is experiencing a supply and demand imbalance. With the state being such a desirable state for transplants, many people have also been moving to Colorado. During the COVID-19 pandemic, people flocked to the state at record rates and apartment-dwellers desired more square footage.

As a result, Colorado has become one of the most expensive housing markets in the nation. In Denver alone, the amount of money that’s bid over the asking price is also at a record-high.

While it may be an excellent time to be a seller in both Wyoming and Colorado, both markets are very competitive for buyers and home prices are higher than ideal. Regardless, even with the higher median home prices, it is still cheaper to purchase a home in Wyoming than Colorado.

With its booming economy and wealth of employment opportunities, Colorado has quickly become one of the fastest-growing states in the U.S. These benefits, paired with Colorado’s stunning landscapes and outdoor lifestyle, is why so many people choose to relocate to the state. However, more affordable housing is still considered a major advantage to settling in Wyoming over Colorado.

Although the median home price in Cheyenne, Wyoming is above the national average, in the majority of the state it is unlikely that you’ll purchase a home for higher than the national average. Whereas, in Colorado, you’ll find that most cities have median home prices significantly above the national average.

While there may be some cities in Wyoming that have higher home prices than other U.S. states, housing costs are still between 40 and 50 percent cheaper than Colorado.

There are about twenty-one states with average monthly rental prices under $1,000. With Wyoming’s statewide average rent of just $855 per month, the state is one of the most affordable places for renters. In fact, between 2019 and 2020, rent for a one-bedroom apartment dropped in Wyoming.

However, monthly rental prices vary based on the specific city you live in. With that said, the table below displays a more detailed look at the average monthly rent in some of the major cities across Wyoming:

Dissimilarly, between 2019 and 2020, Colorado was among the 39 states across the country that experienced an increase in rental prices for one-bedroom apartments. In fact, Colorado is seventh on the list of the states with the highest average monthly rents in the nation, right behind New York State. The statewide average rent is $1,271, but, like Wyoming, prices vary based on the city you live in in the state.

The following table features a more comprehensive look at the average monthly rental prices you can expect in some of Colorado’s cities:

Fortunately, one of the main financial advantages of living in Wyoming over Colorado is the lack of state income tax. The state is among a select few in the country that do not have a personal income tax. This means that whether you’re a teacher, doctor, carpenter, rancher, or dog-walker, you don’t have to pay any sort of income tax on your personal income – including capital gains and income from interest. In Wyoming, once you finish your federal tax return, your taxes are complete for the year.

Colorado, on the other hand, has one of the lowest income taxes in the country. The state has a flat income tax rate of 4.83%, meaning regardless of your income, you only pay that rate. Colorado is one of nine states in the country to have a flat income tax system.

The state of Wyoming’s sales tax is tied for the second-lowest rate of any state that has a sales tax, at just 4%. Though, counties in Wyoming also collect local sales taxes on top of that rate of up to 2%. This means that the most sales tax you could spend is 6%, which is the case in Carbon County.

Like Wyoming, Colorado has one the lowest sales taxes in the nation (among states that do have a sales tax). The base rate in Colorado is just 2.9%. However, there are additional sales taxes levied by both counties and cities in the state. When combined, you can end up paying as much as 11.2%. For example, the sales tax rate in San Juan County is 9.4% but the rate in Boulder County is just 5%.

Whether you’re considering purchasing a home in Wyoming or Colorado, you must think about the property taxes in either state. Wyoming’s average effective property tax rate, or the annual taxes as a percentage of home value, is only 0.57%. This rate is the 10th lowest in the country and Wyoming homeowners pay an average of $1,352 in property taxes annually.

Colorado also has one of the lowest property tax rates in the country – even lower than Wyoming. The state’s average effective property tax rate is a mere 0.49% and some areas have rates that are even lower. For example, the property tax rate in Gilpin County is just 0.23%. Regardless, both states have rates that are substantially lower than the national average of 1.07%.

Whether you decide to move to Wyoming or Colorado, transportation costs are another important consideration involved in determining the overall cost of living in either state. These costs include expenses like gas prices, vehicle purchase prices, bus fares, monthly transit passes, and other public transportation fees.

With Wyoming’s transportation cost index of 77.6 and Colorado’s transportation cost index of 106.7, these expenses are quite a bit cheaper in Wyoming, which is evident in the table below.