Colorado is a beautiful place to live and travel.
There are so many amazing benefits of this state, but the mountains are probably the most important.
The mountains in Colorado are large, they are perfect for hiking and skiing, and they make the state different from many others.
If you have thought about moving to Colorado or simply visiting there, you may have noticed that the prices can be a bit high.
There are some good reasons behind this that are worth considering before you make your move.
Why Is Colorado So Expensive? (Top 10 Reasons)
1. Business Moving to Colorado
Businesses are moving to Colorado every day.
With the space available, the beautiful scenery, and the pool of good employees and people, it’s a good place to bring your business.
With the influx of people who want to move to Colorado, there are plenty of opportunities for businesses to grow.
Depending on the type of business you have and the industry it is in, Colorado can be a very lucrative state to bring your business to.
If you have a product that targets those who are interested in outdoor or mountain life, you should be quite successful.
Overall, Colorado, as a state, is not all that restrictive in business and regulations, and this helps make it an even better place to consider relocating to.
The fact that more and more people are interested in moving their businesses and their lives to Colorado, the pricing in the state continues to increase.
Until people start to find Colorado suddenly less appealing for some reason, you will likely not see this issue change.
2. New Business Development
When business is strong, the people in the general area will have more wealth.
This is the case for the Denver, Colorado area.
The ability to start a new business and get the support of the local people is very strong.
New businesses are opening up all throughout the entire state of Colorado.
These businesses are going to help to make life in Colorado an even better place to be.
As we have mentioned, the Colorado market is a strong one, and this will make it a more expensive place to live.
Although there is not much you can do about this reason for Colorado being more costly, it is a great reason to move there and start a business.
There are plenty of opportunities to create wealth for yourself in Colorado.
If you want that mountain home with views, you can go and earn it by building your own Colorado business.
3. Job Market
The job market in Colorado is a good one.
If you are qualified and you work hard, you will have no issues finding a job.
Living in Colorado is made slightly more affordable by the fact that the job market is very strong.
You will make good money in Colorado, and there are many companies that will fit with the outdoor and stress-free mentality of mountain living.
Companies are generally smart about the time that people need to spend outside and with their families.
There are many young and newer companies in Colorado that are thinking differently about how they are treating employees and the approach to work.
Another option now is to work remotely for a high-paying company in California and commute back and forth to Colorado.
This is something that people are doing more often, and it does seem to work quite well for being able to afford and take advantage of Colorado life.
With the job market remaining strong in Colorado, it’s a good time to start putting your resume in.
If you are lucky enough to move to the Colorado area and have a view, you will never get tired of it.
The mountains in Colorado are breathtaking and beautiful.
The mountains change throughout the year, and they will allow for some amazing wildlife viewing as well.
This is a state that is known for its beauty, and therefore, it is going to cost extra money.
You will notice that areas that have either mountains or oceans are going to be more expensive than other places.
This is generally because of the view that is provided when you are in these areas.
People enjoy the view that they have, and they like the fact that there is nothing that will take this view away.
If you are willing to pay for it, Colorado has some of the best views in the country.
Although they come at a cost, it will likely not be something that you regret long term.
5. Access to Outdoor Activities
If you like spending time outdoors, Colorado is the place you will want to be.
There are so many outdoor activities in Colorado that you will have a hard time fitting everything in that you want to do on a weekend.
For those who are very physically fit, there is quite a bit of mountain biking and hiking to do.
Remember that the elevation is quite high in Colorado and the air a little thinner, so you will have a hard time making it if you are from sea level.
Give your body some time to adjust to the change of temperature and air pressure before you start getting involved in too much physical activity.
Colorado also offers lots of outdoor eateries, outdoor amphitheaters, and even some fishing.
Depending on where you live, there are mountain lakes and streams that will give you access to kayaking, canoeing, and even whitewater rafting.
For those who enjoy golf, Colorado is home to many high-end golf courses.
Golfers will love that, at the higher elevation, they will be able to get quite a bit more distance from the shots that they hit.
There is certainly no shortage of outdoor activities in Colorado, and these will add to the overall cost of living in the state.
These benefits are hard to find in all areas, and those living in Colorado will love what is offered to them.
6. Mountain Life
Colorado offers people a glimpse of mountain life.
In the mountains, there is so much access to wildlife and beautiful nature that some people visit Colorado and never leave.
Colorado is a great place for outdoor activities and spending time fishing and hiking.
Many people find that mountain life is a bit slower than city life, and it allows time for relaxation and reflection.
If these are things you are not currently experiencing in your life, a move to the mountains could change that.
Colorado gives people a unique lifestyle, and it is something that many of them are happy to pay more money for.
As always, there must be a value associated with a state for the pricing to rise.
The value that Colorado has is, without a doubt, related to its quality of life.
7. Housing Supply and Demand
With Colorado being as popular as it is, it is hard to find a house for a great price.
The demand for houses is very high, and people are purchasing them quickly before they even have time to think about it.
Any time the supply is lower than the demand, you will see an increase in housing prices.
For instance, if a person has a home worth $500,000, they may list it for $550,000 simply because they know the inventory is low.
For those who are looking for a new home, the fact that they have to spend $50,000 more may not be a deterrent.
They simply may be so relieved just to find a place that it turns into a quick purchase.
This type of thing continues to happen over and over again until the market is simply priced higher than people can afford.
If Colorado gets to this point, there will be quite a few issues with real estate in the future.
For now, the market is high, and people will continue to ride it out for as long as they can.
8. Interest Rates
Interest rates are extremely low at the given time.
This is helping Colorado homeowners sell their homes for more money.
Buyers who are interested in these homes realize that they can afford quite a bit because of their low interest rates.
People are buying homes priced almost double what they were years ago because they have this extra room in their budget.
Interest rates are going to fluctuate over time.
If they eventually start to go down, you could see that the prices in Colorado go down as well.
However, if the demand is still high, it will just attract more cash buyers, and the impact will likely be far less than you imagine.
Interest rates this low can sometimes become a problem later on.
People get into these large homes that they can afford the interest payment for, yet they don’t consider the other expenses.
Large homes are a lot more work to take care of.
They require more maintenance and work overtime, and that gets expensive.
That is money that will need to be liquid for these people to afford; it cannot be simply rolled into that mortgage; otherwise, it will never be paid off.
If you are looking to be able to afford a home in Colorado, the low interest rates can both help and hurt you.
9. Migration from the Wealthy States
Although the majority of us would consider a median home value of over $400,000 as being quite high, some states would disagree.
When you look at areas like New York and California, they can see Colorado as being a bargain.
This is a good thing for the state of Colorado and those who are looking to sell their houses.
However, for people coming from other states hoping to relocate to the Colorado area, these homes are going to be challenging to afford.
When people are done with the city life of New York or the competitive nature of living in the San Francisco area, they sometimes find that the mountains are a good fit.
Moving to the mountains has a certain peace to it that many are seeking in the latter part of their lives.
This type of mountain life is not something you can create in a different area of the country.
People who can afford it are well aware of this fact, and they have no problem paying to live in Colorado.
Because of this, we can expect to see the cost of living in Colorado continue to go up.
People from wealthy states also use Colorado as a top vacation spot, they frequent areas like Vail and Boulder for great getaways, beer, and ski trips.
This influx of wealthier people enjoying these areas certainly leads to the higher costs in Colorado.
When living in Colorado, you will have to be prepared for some cold and snowy weather.
However, the winters are not necessarily as harsh as people think.
Although there are large belts of snow that can come in and dump a few feet at a time, it is typically uncommon to get three or four months of bitter weather.
The climate in Colorado is a bit milder, and there are plenty of 50- and 60-degree days sprinkled in throughout the colder months.
The summers in Colorado are amazing.
You must remember that the humidity in Colorado is almost zero.
Without the humidity, even the warmer temperatures don’t make you feel that sweaty or warm.
At night, the temperature drops down a bit, and the weather is perfect.
The only thing that you will have to watch out for when it comes to the weather in Colorado is the sun.
The sun is rather strong because of the elevation, and you must make sure to protect your skin.
When you compare the Colorado weather to somewhere like Florida or New York, it gives you a nice mix of seasons without anything being all that extreme.
Many people will enjoy this type of environment and have no problem paying for it.
Better weather and temperatures certainly mean that the price of living there is going to increase.
How to Save Money When Moving to Colorado
If your dream is still to enjoy the mountains, but you are worried about your budget, there are a few things you can do to help lower the cost.
For starters, there are plenty of towns that are located away from the big cities.
These small towns tend to have home prices that are much more affordable.
Although you will likely not call these a bargain, they can save you a bit of money.
If you can find a fixer-upper in this area and flip it for a profit, you may be able to afford one of the homes with a mountain view.
Those mountain views tend to cost quite a bit.
Finding a spot that gives you a great view and a yard is going to be expensive.
Starting with a townhouse or something similar that has lots of amenities and maybe a park with a view could be a good step into living in Colorado for a fair price.
If you want to save money when visiting Colorado, try to go during the offseason.
For instance, Vail is beautiful in the summer and much less expensive than it is to go skiing there.