Cost of Living in Lakewood, CO

An Overview of Cost of Living in Lakewood, CO

Are you thinking about relocating, but curious about the potential cost of living in Lakewood? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Lakewood stands at 130, making it 30% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

If you value affordability in your search for a new place to live, Lakewood may not be the most suitable option, as it stands out as one of the priciest areas in the entire United States. Only a small fraction of regions have a cost of living that is more than 20% higher than the national average, and regrettably, Lakewood falls into this category, which may not align with your desire for an affordable place to call home.

When it comes to the cost of living in Lakewood, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 96.1% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Lakewood?

Nobody knows their city better than the people who actually live there. So, we asked 8 local residents how they would rate the cost of living in Lakewood and this is how they responded. 25% of people said that the cost of living was affordable, with prices decreasing, while 75% of people said that the cost of living was very expensive and prices continue to rise.

Is Lakewood Affordable?

Is Lakewood an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Lakewood is 115.6% higher than the national average, while the average monthly rent prices are 50.7% higher than average. The affordability of any location can also be influenced by median income levels. Lakewood has a median household income of $71,233, which is 28.8% higher than the national average.

What Factors can Influence the Cost of Living in Lakewood?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Lakewood comes in at 15% lower than the national average.

Urbanization: Larger, urban hubs brimming with ample amenities and robust employment opportunities often showcase a heightened cost of living. This surge is primarily attributed to the amplified demand for services and increased residential migration, culminating in elevated home prices and elevated rental rates. Conversely, less densely populated rural locales or regions characterized by reduced demand tend to offer a more limited array of amenities and undergo slower job market growth, ultimately yielding a more affordable cost of living.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Lakewood, is 96.1% higher than the national average.

Where is the Data From?

The Lakewood cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.