Cost of Living: Los Angeles vs. Denver

Last Updated: February 2026 | By Nick Ahrens, North Denver Report

Los Angeles is approximately 35% more expensive to live in than Denver, with the gap driven primarily by housing costs and California's income tax structure. A household earning $200,000 per year can expect to save $40,000–$80,000 annually by relocating to the Denver metro — and in Broomfield specifically, you're buying into a community that delivers comparable amenities at a fraction of Southern California's price. Here's the complete, data-driven breakdown.

How Do Housing Costs Compare Between LA and Denver?

Housing is where the LA-to-Denver math becomes undeniable. The median home price in LA County is approximately $900,000 (Q4 2025, Source: California Association of Realtors). In the Denver metro, the median sits around $550,000. In Broomfield — one of the most popular landing spots for California relocators — the median is $650,000 (Source: REcolorado MLS, Q4 2025).

That $250,000–$350,000 purchase price gap translates directly into monthly payment savings of $1,500–$2,200 at current mortgage rates. If you're coming from LA with home equity, that equity often covers a significant down payment in Colorado, sometimes eliminating a mortgage entirely for buyers who've owned in high-cost LA neighborhoods for 10+ years. See how that equity transfer works in detail by emailing me

Housing MetricLos AngelesDenver MetroBroomfieldMedian Home Price (Q4 2025)~$900,000~$550,000~$650,000Median Monthly Rent (2BR)~$3,200~$2,000~$2,200Price per Square Foot~$650~$320~$290Property Tax Rate~1.1%~0.6%Varies by metro district

Sources: California Association of Realtors, REcolorado MLS, Broomfield County Assessor

How Do State Income Taxes Compare?

California has the highest state income tax in the country, with a top marginal rate of 13.3% on income over $1 million and a 9.3% rate kicking in at just $66,296 for single filers. Colorado, by contrast, has a simple flat income tax rate of 4.4% on all income, regardless of how much you earn.

For a household earning $200,000, that difference works out to approximately $9,800–$17,800 in annual state tax savings, depending on filing status and deductions. For the tech professionals and corporate executives who make up the bulk of California-to-Colorado movers — many earning $250,000–$400,000 — the annual tax savings alone often exceed $20,000. For a deeper breakdown of how this affects your take-home pay send me a message

Income TaxCaliforniaColoradoStructureProgressive (marginal rates)Flat rateRate at $100K income9.3%4.4%Rate at $200K income9.3%4.4%Top Rate13.3%4.4%SDI (State Disability)0.9%NoneAnnual savings at $200K household—~$9,800–$17,800

Source: California Franchise Tax Board, Colorado Department of Revenue

What About Groceries, Utilities, and Everyday Expenses?

Housing and taxes are the big levers, but everyday expenses also add up. Denver grocery costs run approximately 4–6% below Los Angeles levels, according to the Council for Community and Economic Research (C2ER) Cost of Living Index. Utilities in Denver average around $150–$180/month for a standard home, compared to $130–$160 in LA — electricity costs are similar, but Denver homes require heating in winter, which LA homes don't.

Car insurance is a meaningful surprise: Colorado drivers pay an average of $1,750/year in auto insurance premiums, vs. $2,400/year in California (Source: Bankrate, 2025). Healthcare costs in Denver average roughly 5% below LA. On balance, outside of housing and taxes, the everyday cost of living in Denver is roughly 5–10% less than in Los Angeles — a meaningful but not dramatic difference. The big savings remain in real estate and the tax column.

Expense CategoryLos AngelesDenver MetroDifferenceGroceries (index)109103~6% less in DenverUtilities/month~$145~$165~14% more in DenverCar Insurance/year~$2,400~$1,750~27% less in DenverHealthcare (index)112106~5% less in DenverAverage gas price~$4.50/gal~$3.20/gal~29% less in Denver

Source: C2ER Cost of Living Index, Bankrate 2025, GasBuddy

How Do Commutes and Transportation Compare?

Los Angeles has one of the worst commute environments in the world — the average LA commuter spends 56 hours per year in traffic delays (Source: INRIX 2024 Global Traffic Scorecard). Denver's average is closer to 36 hours annually. That's a real quality-of-life difference, not just a financial one.

In Broomfield specifically, commute dynamics are notably favorable. A Broomfield resident commuting to downtown Denver covers roughly 22 miles on US-36, with an average drive time of 30–40 minutes without traffic. Many Anthem and Anthem Highlands residents are fully remote — 54.8% of Anthem homeowners work from home, which makes the community particularly appealing to the Silicon Valley and LA professionals who are the primary driver of California-to-Colorado migration. You can learn more about the Anthem community's demographics in The Complete Guide to the Anthem Community in Broomfield.

What's the Total Annual Savings of Moving from LA to Denver?

For a household earning $200,000 per year, here's a realistic estimate of annual savings from relocating from Los Angeles to Broomfield, Colorado:

Savings CategoryAnnual EstimateState income tax reduction$9,800–$17,800Housing cost reduction (own)$18,000–$30,000Auto insurance reduction$650Grocery & everyday expenses$2,000–$4,000Gas savings$1,200–$1,800Total estimated annual savings$31,650–$54,250

For households earning $300,000–$400,000, annual savings routinely reach $60,000–$90,000. This is why the IRS migration data shows California-to-Broomfield movers arriving with an average AGI of $125,764 — these are not budget-constrained moves, they're strategic financial decisions by people who've done the math. (Source: IRS Statistics of Income, Migration Data 2021-2022)

Ready to run your own numbers?

I work with LA and Southern California families every week who are making this exact move. I'll put together a personalized cost comparison using your current income, home equity, and target budget — real data, not a calculator estimate.

📧 Email Nick directly: nickahresnrealestate@gmail.com

Nick Ahrens is a Broomfield real estate expert with the North Denver Report, specializing in Anthem, Anthem Highlands, Baseline, and the North Denver metro.

Frequently Asked Questions

Is Denver cheaper to live in than Los Angeles? Yes. Denver is approximately 30–40% less expensive than Los Angeles overall. The biggest savings come from housing — the median home price in the Denver metro is roughly $550,000 vs. $900,000+ in LA County — and from California's 13.3% top income tax rate vs. Colorado's flat 4.4% rate.

How much do you save moving from LA to Denver? A household earning $200,000/year typically saves $31,650–$54,250 annually when you account for lower housing costs, lower state income taxes, lower car insurance, and reduced everyday expenses. Higher earners save proportionally more due to Colorado's flat tax structure.

What is the cost of living difference between Los Angeles and Denver? According to the C2ER Cost of Living Index, Denver runs approximately 30–38% less expensive than Los Angeles on an overall basis. Housing accounts for the largest portion of that gap.

Is Broomfield cheaper than LA? Yes. Even though Broomfield ($650,000 median) is more expensive than the broader Denver metro ($550,000), it's still dramatically more affordable than LA County ($900,000+) — and it comes with top-rated schools, newer construction, and master-planned community amenities that most LA neighborhoods at that price point can't match.