The Ascent, a Motley Fool service, recently released a list of the 'most affordable' spots in the American West based on income-to-expense ratio and two Colorado cities were among the top ten 'most affordable' spots. In order to include the income-to-expense ratio in their analysis, The Ascent compared the cost of living estimate to median household income.
Ranking fourth on the top 10 list and earning the highest placement in Colorado was Denver. With cost of living estimated at $72,176 and a median household income of $85,641, the Mile High City has a 1.187 income-to-expense ratio.
Found in the eighth place spot was Colorado Springs, with a lower cost of living than Denver, but also lower median household income. The cost of living in Colorado Springs was calculated at nearly $7,000 less than that of Denver – $65,557 – however, people in Colorado Springs make quite a bit less. The median household income in the Springs is $72,633 – more than $13,000 less than that of the Mile High City.
In comparison, Denver residents have an average of $13,465 left over after cost of living is taken out of the median household income. Colorado Springs residents have $7,076.
It's also worth noting that median property value is quite a bit different when comparing these two Colorado cities. In Denver, the median property value is reportedly $435,100. In Colorado Springs, that number is just $288,400.
Topping out the list of most affordable spots in the West based on income and cost of living were three Utah spots – Ogden (1st), Provo (2nd), and Salt Lake City (3rd).
Read more about this analysis and the methodology here.