Denver, CO vs. Lakewood, CO: Cost of Living Comparison (2025)
This article provides a cost of living comparison: Denver vs Lakewood. It is perfect for families relocating, professionals choosing between job offers, or anyone comparing the real-life cost of Denver vs Lakewood in 2025.
Housing Costs
Housing is one of the biggest factors in the cost of living difference between Denver and Lakewood. Here’s how typical rent and mortgage costs compare:
| Housing Type | Denver | Lakewood |
|---|---|---|
| 2BR Apartment (Monthly Rent) | $2,100 | $1,800 |
| 3BR House (Median Price) | $650,000 | $550,000 |
🏆 Winner: Lakewood. Housing costs are about 15-20% lower in Lakewood compared to Denver proper.
Utilities and Energy Costs
Utility bills are fairly similar between the two cities, but Lakewood has slightly lower rates:
- In Denver, expect to pay around $180/month for electricity, gas, water, and trash for a 2BR apartment.
- In Lakewood, similar utility costs average closer to $160/month.
- Both cities have seasonal swings, with summer A/C and winter heating adding $40-50/month.
🏆 Winner: Lakewood. Utility costs are about 10% lower than Denver.
Groceries and Daily Expenses
Grocery and restaurant prices are nearly identical in Denver and Lakewood. Expect to budget the following for food costs:
- $400-500/month per person for groceries, household items, and toiletries
- $60-80 for a mid-range restaurant dinner for two
- $5-6 for a pint of craft beer at a local bar
🏆 Winner: Tie. There is no significant difference in food and daily living costs.
Taxes and Fees
Denver and Lakewood have similar tax rates, but a few differences to note:
- Both cities charge a 4.81% sales tax on purchases.
- Denver’s effective property tax rate is 0.56%, while Lakewood’s is 0.63%.
- In Denver, HOA fees often include landscaping and trash, adding $200-400/month. Lakewood HOA fees are lower on average.
🏆 Winner: Denver. The lower property tax can save homeowners significantly over time.
Cost Summary Table
| Category | Denver | Lakewood |
|---|---|---|
| Housing (2BR Rent) | $2,100 | $1,800 |
| Utilities | $180 | $160 |
| Groceries (1 person) | $450 | $450 |
| Transportation | $100 | $100 |
| Taxes (0.56% vs 0.63%) | $300 | $340 |
| Miscellaneous | $300 | $300 |
| Estimated Monthly Total | $3,430 | $3,150 |
Note: All income figures are expressed in gross monthly income (pre-tax).
Lifestyle Fit
While Lakewood is cheaper overall, each city has unique lifestyle tradeoffs:
- Denver offers a dense urban environment, ideal for walking and biking. But parking and traffic can be a challenge.
- Lakewood provides more space, yards, and quiet suburban streets. But commute times to Denver jobs are longer.
- Denver averages 5°F warmer than Lakewood in summer due to the urban heat island effect.
- Lakewood has more public transportation options, with light rail access to Denver.
Frequently Asked Questions
Is Denver more affordable than Lakewood?
No, Lakewood is generally more affordable, with lower housing and utility costs. A household moving from Denver to Lakewood might save $400/month on housing alone.
Which city has lower rent?
Lakewood has lower rent, with a typical 2BR apartment costing about $1,800/month vs. $2,100/month in Denver.
Where is it cheaper to buy a home?
Lakewood has lower home prices, with the median 3BR house costing $550,000 compared to $650,000 in Denver. However, Denver’s lower property taxes help offset the higher price.
Conclusion
Overall, Lakewood offers a lower cost of living, with savings on housing, utilities, and taxes. It’s ideal for families who prefer a suburban lifestyle and don’t mind a longer commute.
However, Denver can be worth the extra cost for those who value an urban environment, walkability, and proximity to jobs and attractions. Young professionals and singles may prefer Denver.
Ultimately, the right choice depends on your budget, lifestyle, and priorities. Be sure to check out our other cost of living resources for Denver and monthly budget examples to help with your decision!