Denver vs Anchorage

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Colorado salaries · Alaska salaries

Living in Denver vs Anchorage

Housing is typically the biggest factor in any cost-of-living comparison. Denver has a housing index of 152 while Anchorage sits at 142 (national average = 100). The median home in Denver costs $520,000 compared to $340,000 in Anchorage, a difference of $180,000. Monthly rent follows a similar pattern: $1,900 in Denver versus $1,400 in Anchorage.

Groceries and everyday expenses show a notable difference: Denver scores 102 while Anchorage scores 120.

Healthcare costs in Denver (104) are lower than Anchorage (128).

Median household income in Denver is $72,661 compared to $72,515 in Anchorage. When adjusted for cost of living, income goes further in Denver.

Relocating: Denver vs Anchorage

If you are considering a move between Denver (index: 118) and Anchorage (index: 127), the 7% cost difference has real implications for your budget. Denver is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Denver can afford $1,695/month, while the median household in Anchorage can afford $1,692/month. With median homes at $520,000 in Denver versus $340,000 in Anchorage, the higher-cost city presents significant affordability challenges.

Renting vs buying: At $1,900/month in Denver and $1,400/month in Anchorage, renters save significantly in Denver. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes significantly further in Denver. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Denver (118) vs Anchorage (127)

The cost of living index uses 100 as the national average. Denver at 118 is 18% above the US average, while Anchorage at 127 is 27% above average. There is a meaningful cost gap between these two cities that affects day-to-day budgeting.

A 9-point index spread separates Anchorage from Denver, a moderate gap that adds up across monthly bills but is manageable with a typical dual-income household budget. The biggest category divergence is utilities, where Denver scores 94 and Anchorage scores 130. That 36-point gap is the primary driver of the overall cost difference between these two metros. Housing, the largest line item for most households, favors Anchorage with indices of 142 versus 152. Median home prices of $520,000 in Denver and $340,000 in Anchorage underscore this gap. Neither city is cheaper across the board: Denver has an edge in groceries and utilities, while Anchorage is more affordable for housing. Your actual savings depend on which categories consume the biggest share of your personal budget.

For renters: With median rents of $1,900/month in Denver and $1,400/month in Anchorage, the annual rent difference is approximately $6,000. Over a 5-year period, that compounds to $30,000 in savings by choosing the more affordable city.

For homebuyers: The $180,000 difference in median home prices between Denver and Anchorage translates to roughly $10,800 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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