Colorado now third-most expensive state in the nation, report finds

Colorado’s mountain views, craft beer and 300 days of sunshine now come with a price tag to match: The state is the third-most expensive in the country to live in, according to the Colorado Chamber of Commerce’s latest scorecard.

The ranking, released late last year and gaining renewed attention this month, shows Colorado’s affordability has plummeted in recent years. The state ranked 47th nationally in cost of living in 2025, down from 46th in 2024 and 34th in 2022 — a slide in each of the last four years. Housing is the primary culprit. Colorado now ranks 48th in housing affordability, with a statewide median home price of $540,000. In Denver County, the median listing price hit $535,000 in February, while even Pueblo County — long considered a bargain — posted a median of $349,900.

The Colorado Chamber of Commerce attributes the climb to rising home prices, higher insurance rates, child care costs and persistent inflation. Toddler care alone runs roughly $1,450 a month in the state. The chamber’s scorecard noted a “mixed outlook,” crediting Colorado for gains in business friendliness, gross domestic product and median full-time salary, but warning that the cost-of-living trend is eroding those strengths.

The timing underscored the point: Also released this week, U.S. News & World Report’s annual “best places to live” ranking failed to place a single Colorado city in its top 75. Parker, at No. 87, was the state’s highest-ranked entry, followed by Centennial at 107th and Castle Rock at 133rd — a far cry from 2024, when Boulder and Colorado Springs both cracked the top five.