Whether you're a young professional contemplating a move, a growing family assessing your living situation, or a retiree planning your next chapter, this blog post aims to provide detailed insights into the various expenses that shape life in Lakewood. From the bustling real estate market to daily costs like groceries and utilities, we equip you with the knowledge you need to navigate the economic waters of this charming Colorado city, where the urban landscape meets the serenity of the mountains.
Nestled at the foothills of the majestic Rocky Mountains, Lakewood, Colorado, offers a unique blend of urban convenience and natural beauty. But beyond its picturesque setting lies a practical question for anyone considering calling this city home: is it an expensive place to live?
In this comprehensive guide, we delve into the financial landscape of Lakewood, breaking down the cost of living by answering key questions. What is the expected cost of living in Lakewood? What is the median income here? What constitutes a good livable salary in this city? And, crucially, what are the average rent and home prices?
Lakewood vs The Average American City
When considering a move to Lakewood, CO, a key factor to weigh is the cost of living. This beautiful city, forming a part of the Denver-Aurora-Lakewood Metro area, holds a significant rank in terms of affordability and living expenses.
Specifically, Lakewood stands at 55th among 273 cities across the United States. This ranking, according to the Council for Community and Economic Research (C2ER), reflects the broader economic conditions and living costs in this region.
However, what does this ranking translate to in practical terms? The cost of living in Lakewood is estimated to be 106.8% of the national average. This figure places Lakewood as an average American city regarding living expenses. It is neither significantly high nor surprisingly low, striking a balance for those seeking a middle ground in economic terms.
Comparing the Cost of Living: Lakewood vs. U.S. Average
Lakewood, Colorado, is ranked 55 out of 273 cities across the US in terms of cost of living, with an index of 106.8% of the national average. To understand this better, let’s compare specific costs in Lakewood with the U.S. average:
| Category | Lakewood | U.S. Average | Difference |
| Milk (1/2 gal) | $4.67 | $4.65 | +0.61% |
| Bread | $4.25 | $3.90 | +8.31% |
| Hamburger | $5.49 | $5.36 | +2.45% |
| Large Pizza | $12.39 | $12.04 | +2.81% |
| Chicken (2 pcs) | $4.99 | $4.92 | +1.39% |
| Doctor Visit | $99.00 | $131.54 | -32.87% |
| Dentist Visit | $100.00 | $113.65 | -13.65% |
| Rent | $2,145.00 | $1,470.04 | +31.47% |
| Mortgage | $2,759.16 | $2,283.80 | +17.23% |
| Gas | $3.63 | $3.35 | +7.77% |
| Energy Bill | $153.62 | $192.98 | -25.62% |
This table shows that while some everyday items like milk, bread, and pizza are slightly more expensive in Lakewood than the national average, significant savings can be found in healthcare and utility costs. Housing costs, including rent and mortgage, are notably higher in Lakewood. These variations underline the unique economic landscape of Lakewood compared to the national average.
Lakewood’s Living Costs: A Comparison with National Averages
Overall Cost of Living:
Lakewood vs. National Average: The cost of living in Lakewood is approximately 7% higher than the national average. This encompasses various daily expenses, including groceries, healthcare, transportation, and utilities.
Housing Prices:
Lakewood vs. National Average: When it comes to housing, Lakewood’s prices are notably higher. The housing costs in Lakewood are about 29% higher than the national average. This significant difference is reflective of the desirable nature of the area, influenced by factors like its proximity to Denver and the scenic beauty of the Rocky Mountains.
These figures paint a clear picture: while Lakewood offers many attractions and amenities, it does come with a higher price tag, particularly in terms of housing. For those considering a move to Lakewood, it’s crucial to weigh these financial considerations against the lifestyle benefits the city offers.
Income in Lakewood | What Should You Expect?
Median Income Insights
- Median Household Income: In Lakewood, the median household income is $75,343. This figure is about 6% less than the state’s median, reflecting the local economic environment.
- Median Individual Income: For individuals, the median income is $43,921, which is slightly higher (3%) than the state average. This gives a perspective on the earning capacity of a single wage earner in the city.
Calculating a Livable Salary
- Housing Affordability (28% Rule): A widely accepted guideline for housing affordability is the 28% rule. It suggests that your monthly housing costs (including rent or mortgage payments, property taxes, and insurance) should not exceed 28% of your gross income (income before tax). This rule helps in determining the upper limit of your housing budget based on your income.
- Balanced Spending (50-30-20 Rule): Another useful principle is the 50-30-20 rule for budgeting. According to this rule, 50% of your net income (income after tax) should be allocated to necessities (like housing, utilities, groceries), 30% to discretionary expenses (entertainment, dining out), and 20% to savings and investments. This rule assists in planning a balanced financial life, ensuring that you can comfortably cover your needs and wants in Lakewood.
Housing In Lakewood | Median Home Cost in Lakewood, Rent & More
Renting in Lakewood
- Average Rent: The average rent for a 2-bedroom home in the Denver-Aurora-Lakewood Metro area, which includes Lakewood, is $2,145. This is significantly higher – 45% more – than the average rent across the United States. However, it’s important to note that this average encapsulates a range of housing options across both urban and suburban areas, and actual rent can vary depending on the neighborhood you choose.
- Compared to National Average: Lakewood’s rent is about 45% higher than the national average, reflecting the city’s desirability and the overall cost of living in the area.
Buying a Home in Lakewood
- Median Home Price: The median home price in Lakewood stands at $567,500, with a median price per square foot of $333. These figures indicate a robust real estate market, influenced by Lakewood’s appealing location and quality of life.
- Housing Cost Index: At 128.8% of the national average, the housing cost index in Lakewood points to it being one of the more expensive cities in the U.S. for homeownership.
Taxes
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- The general sales tax in Colorado is 43% lower than the national average, which can positively impact daily and major purchases.
- On the other hand, Colorado’s state income tax is 95% higher than the national average, a significant consideration for personal financial planning.
What These Numbers Mean for Potential Residents
The cost of housing in Lakewood, whether renting or buying, is a significant factor to consider. The city’s housing market reflects its growing popularity and the high quality of life it offers. Are you one of the next people coming to Lakewood? Leaving Lakewood? If so always make sure to reach out to our Movers Lakewood, CO for assistance.
Potential residents should plan their budgets accordingly, keeping in mind the 28% rule for housing affordability and the 50-30-20 rule for overall financial planning. It’s essential to ensure that your income aligns with these housing costs to maintain a comfortable standard of living in Lakewood.
