Denver, a rapidly growing city at the foot of the Rocky Mountains. Are you wondering if you can afford to live in Denver with your income?

 According to the Census ACS 2023, the median household income in Denver is $75,000 per year, which is similar to the national median household income of $78,538.

Denver has been one of the fastest-growing cities in the U.S. over the past decade. With tech companies, biotech, energy firms, and aerospace companies establishing themselves, the number of high-income professionals has surged.

Local hubs for Amazon, Google, and Salesforce have emerged, and aerospace defense companies like Lockheed Martin and United Launch Alliance are also located in the Denver metro area. But why is the median income below the national average?

The high proportion of workers in the service, food, and retail sectors, along with an influx of young people (Colorado graduates staying, young people pursuing an outdoor lifestyle), fills the lower end of the income distribution. The city has a highly polarized income distribution.

What about housing prices? To be honest, Denver's housing prices have risen at an alarming rate over the past decade. The current median sale price for single-family homes is between $520,000 and $650,000, nearly double the $250,000 to $350,000 range from ten years ago.

A household with a median income of $75,000 purchasing a $600,000 home would have a price-to-income ratio of eight times. While this is lower than in California, it is still a significant burden compared to Midwestern or Southern cities. This is the reality many newcomers to Denver experience.

However, the rental market may offer some relief. A one-bedroom apartment ranges from $1,700 to $2,300 per month, while a two-bedroom goes for $2,200 to $3,000.

Premium areas like downtown or Cherry Creek see higher prices, but relatively affordable options can be found in neighborhoods like Capitol Hill or Westwood. For dual-income households with a combined income of over $120,000, it is possible to live while saving.

One noteworthy aspect of Denver is that since the legalization of marijuana, related industries have formed a new income tier. Additionally, outdoor sports-related companies (like REI and Osprey) and the craft beer industry are creating a unique employment base in Denver. The mix of various industries makes it less vulnerable to downturns in specific sectors.

In the long term, Denver's income levels may rise. Tech companies continue to relocate, and the state government is actively attracting advanced industries. However, this process is likely to drive up housing prices as well, so timing your entry into the market is crucial.

The $75,000 median income reflects a transitional phase in Denver, where the income structure of a growing city has not yet fully settled.

If you're looking to find your place in a dynamic city where high and low incomes coexist, I believe Denver is a place worth considering. Take your time to think it over before making a decision.