Minimum wage in Colorado continues to be a critical topic for anyone considering relocating to the Centennial State. If you’re moving to Denver or another Colorado city without a job lined up, it’s important to understand how minimum wage laws impact your income and lifestyle in 2025.
Understanding Minimum Wage in Colorado
As of January 1, 2025, the minimum wage in Colorado is $14.81 per hour statewide. In Denver, local ordinances set a higher minimum wage at $18.81 per hour, adjusted annually based on the Consumer Price Index (CPI). For tipped employees such as restaurant servers, Colorado law mandates that employers must ensure total earnings (including tips) equal or exceed the minimum wage.
Can You Live on Minimum Wage in Denver?
While the minimum wage has risen steadily, it still may not be enough to cover the cost of living in Denver. According to recent housing data, the average rent for a one-bedroom apartment in Denver is $1,673/month, while two-bedroom units average $2,185/month. To afford a modest two-bedroom apartment without spending more than 30% of income on rent, a household would need to earn around $25.33 per hour.
That means even full-time minimum wage earners in Denver—earning around $39,100 per year—may struggle to afford housing and other essential expenses. For comparison, the average annual salary in Denver is approximately $91,681.
Housing Costs and Affordability in 2025
The median home value in Denver is currently $558,705, with a slight decline of 3.6% year-over-year. With a 6.7% mortgage interest rate, monthly payments for a median-priced home can exceed $2,500. Buyers need an annual household income of roughly $91,700 to comfortably afford a home in Denver.
If you’re planning to rent, Denver rents remain about 3–5% above the national average. Renters should plan to earn at least $55,960/year to afford a one-bedroom apartment and around $65,000 for a two-bedroom.
Cost of Living Breakdown
Denver’s cost of living is roughly 13% higher than the national average. Monthly expenses (excluding rent) average:
- $1,297 for a single person
- $4,705 for a family of four
Groceries, utilities, and transportation costs are also higher than average, making it crucial to evaluate income versus lifestyle when planning your move.
Tips for Newcomers Moving to Denver
- Plan ahead financially. Save for at least 3 months of expenses.
- Aim for jobs paying above minimum wage. Consider roles in healthcare, tech, construction, and finance.
- Research housing options. Neighborhoods like Green Valley Ranch, Montbello, and Aurora may offer lower rental rates.
- Use budgeting tools. Sites like RentCafe and Salary.com can help estimate realistic costs.
Final Thoughts: Minimum Wage in Colorado and Living Well
Living on minimum wage in Colorado—especially in Denver—can be challenging due to high housing costs and a rising cost of living. However, with strategic budgeting and a stable income, the Denver metro area remains an exciting and opportunity-rich place to call home. Whether you’re relocating solo or with family, understanding the wage landscape is key to making your move a success.
Request your free Denver Relocation Guide here
