This article takes a look at the 15 best places to retire in Colorado. If you wish to skip our detailed analysis on navigating retirement living in the US, you may go to 5 Best Places to Retire in Colorado.
The US Cost of Living
Cost of living can be defined as the amount of money required to cover necessary expenses in order to maintain a certain standard of lifestyle. When making the retirement move - a feat undertaken by over 338,000 Americans in 2023 alone - the cost of living is often at the top of retiree considerations - understandably so.
Many may already know, inflation has slowed down. Taking the Bureau of Labor Statistics’ Consumer Price Index, it becomes apparent that inflation has been on a downward trend since 2022. The year 2022 saw inflation drop by 3 percentage points, and the following year - 2023 - saw a heightened drop with the difference exceeding 3 percentage points.
However, a slowed-down inflation rate - or disinflation - still indicates an increase in prices, hence the cost of living crisis still faced by senior citizens. The U.S. Bureau of Labor Statistics shared that consumer prices faced a 3.2% increase in the February 2022 to February 2023 12-month period, with one of the most pertinent categories - food - facing a 2.2% increase. Since daily living expenses - which includes groceries - is one of the biggest expenses of retirees, the undesirable impact of an increased grocery bill is obvious enough.
Another major expense is that of shelter. Retirees are often found to live on rent. As such, when rent figures go up, they face adverse effects. Zillow Group, Inc. (NASDAQ:Z)’s February 2024 Rental Market Report does not show positive signs. Zillow’s Observed Rent Index - or ZORI - came out to a high of $1,959 for the month of February - a 0.4% increase from the previous month. On a yearly basis, this brings up the year-on-year rental increase to 3.5%. To take a look at the bigger - and more drastic - picture, Zillow Group, Inc. (NASDAQ:Z) reveals that rental figures have gone up a whopping 29.9% from pre-pandemic times. For retirees who are either surviving solely on a Social Security income or an otherwise limited budget, these increases in the cost of living do not come easy.
This brings us back to square one - retirement moves and the consideration of the cost of living. With retirement relocation becoming an increasingly popular trend, retirees across America often flock to states that are favorable for retirement. Here, they keep in mind the main factors of cost of living, rental figures, median house prices, and of course, the quality of life provided when deciding on where to stake their retirement home. Of course, there’s also the class of American retirees who bid farewell to the States and venture to find the best places to retire around the world.
Of those who want to stay within familiar borders, Colorado is a popular retirement choice - the state’s population breakdown (15.7% of Colorado’s population is 65 and above) is indicative of this. However, finding affordable living options in the state requires some work. With a high cost of living index of 120.5 and a high median house price of $599,400 as reported by Redfin Corporation (NASDAQ:RDFN), Colorado does not seem a retirement-friendly state at first glance. However, the state holds many affordable living options, particularly within its small towns, that are perfect as retirement destinations. All in all, with the right research, Colorado is a good state to retire.
To facilitate present and potential retirees in navigating the move to Colorado state, we have compiled a list of the 15 best places to retire in Colorado.
Once a list of places was compiled using these sources, we then ranked them on cost of living, livability scores, and median house price. This article took cost of living indices from Best Places, livability scores from Area Vibes, and median house prices from Redfin Corporation (NASDAQ:RDFN). To ensure that the places were of a suitable living standard, we removed places with a livability score below 60. We also removed places with a cost of living index of 100 and above to make sure that our selection was affordable. A cumulative score was assigned to each place, with the highest-scoring places making our list of the 15 best places to retire in Colorado.
For places that gained an equal score, their cost of living index was used as a tie-breaker. Our list is presented in ascending order. By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here are the 15 best places to retire in Colorado:
15. Lake City
Insider Monkey Score: 60
Livability: 61
Cost of Living Index: 97.7
Median House Price: $398,000
Set in the San Juan Mountains is the Hinsdale County town known as Lake City. A small town - the population was below 500 as per the last United States Census - the town is a welcome break from the hustle and bustle of big city life. Not only can retirees enjoy unfiltered access to the great outdoors, but they can also enjoy a cost of living that is 2.3% lower than the national average - a much-needed helping hand for the on-a-budget retiree.
14. Lincoln Park
Insider Monkey Score: 64
Livability: 67
Cost of Living Index: 91
Median House Price: $450,000
Lincoln Park is our second pick for the best places to retire in Colorado. With a cost of living that is 9% lower than the national average, Lincoln Park is among the best places to retire in Colorado on a budget. A semi-rural community, the place is located near Canon City - giving retirees the benefit of small-town living with nearby facilities.
13. Fruita
Insider Monkey Score: 67
Livability: 72
Cost of Living Index: 99.1
Median House Price: $399,000
Located in Western Mesa County, Fruita cemented its origins as a fruit-heavy region. In current times, the area has developed to become popular for a variety of leisure outlets - including outdoor sports such as rafting, hiking, and mountain biking, yearly festivals, and its location near the Colorado National Monument. Retirees with a love for the prehistoric can also visit the Dinosaur Journey Museum and golf enthusiasts can play a round at the Adobe Creek National Golf Course.
12. Grand Junction
Insider Monkey Score: 69
Livability: 79
Cost of Living Index: 99.1
Median House Price: $408,954
Up next on our list of the best places to retire in Colorado is the city of Grand Junction. Set in Mesa County, the city enjoys an ideal location near some of Colorado state’s most spectacular natural features including Grand Mesa, Colorado National Monument, and the Book Cliffs. The city offers a cost of living that is lower than the national average and affords retirees a range of indoor and outdoor activities.
11. Montrose
Insider Monkey Score: 70
Livability: 70
Cost of Living Index: 95.4
Median House Price: $384,125
Montrose County’s most populous municipality, the city of Montrose features a semi-arid continental climate - perfect for retirees who want to escape the harsh cold. The city holds a sparse suburban setting that makes for peaceful living. Residents can visit the Montrose Water Sports Park, the Ute Indian Museum, and the Montrose Farmers Market where they can find local produce of the highest quality.
10. Cortez
Insider Monkey Score: 70
Livability: 66
Cost of Living Index: 92.6
Median House Price: $281,000
The number ten spot on our list goes to one of the best places to retire in Colorado for retirees - Montezuma County’s city of Cortez. With a cost of living that is 7.4% lower than the national average and a low median house price of $281,000, Cortez is a great option for financially struggling retirees. With an estimated population of 9,000 as per the last United States Census, retirees can enjoy small-town living that is perfect for a peaceful Golden period.
9. Canon City
Insider Monkey Score: 76
Livability: 67
Cost of Living Index: 91
Median House Price: $250,000
Canon City is one of Colorado’s most famous tourist destinations. The city offers sightseeing spots as well as outdoor activities such as rock climbing and white water rafting. Located in Fremont County along the Arkansas River, residents can visit the city’s public parks, The Winery At Holy Cross Abbey, and The Artists' Gallery among many other entertainment outlets. Of course, Canon City’s affordable price point is also an added retirement time advantage.
8. Fort Morgan
Insider Monkey Score: 78
Livability: 70
Cost of Living Index: 87.6
Median House Price: $295,500
Morgan County’s most populous municipality, Fort Morgan is a popular retirement spot - about 14% of the area’s total population consists of senior citizens. Retirees are drawn in by Fort Morgan’s laid-back lifestyle, easy access to nature, and leisure options - not to mention, the Quail Dunes Golf Course - along with its low cost of living.
7. La Veta
Insider Monkey Score: 78
Livability: 62
Cost of Living Index: 78.6
Median House Price: $253,000
With one of the lowest costs of living throughout our selection of Colorado retirement places - a whole 21.4% lower than the national average - La Veta presents retirees with an affordable yet pleasant living option. With a population of less than 1,000 residents, retirees will be able to slow down and enjoy the finer details of life - all while surrounded by the majestic backdrop of the Spanish Peaks.
6. Sterling
Insider Monkey Score: 80
Livability: 63
Cost of Living Index: 80.8
Median House Price: $230,000
Set in Logan County, Sterling is known as the ‘Queen City of the Plains’. A hub of culture and art nestled within northeast Colorado, Sterling is home to Bradford Rhea’s renowned tree sculptures as well as a collection of bronze artwork. The area also offers a retreat into nature with walkways, parks, and hiking trails.
