Birmingham vs Denver: cost of living compared
Denver is 64% more expensive than Birmingham overall. State income tax tops out around 4.4% in CO vs 5% in AL.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Moving between Birmingham and Denver presents a significant shift in living expenses. Overall, the cost of living in Birmingham is noticeably lower than the national average, while Denver's expenses are considerably higher. This difference is primarily driven by housing costs, which are dramatically higher in Denver, but extends to most other spending categories as well, making Birmingham a much more budget-friendly option across the board.
Housing
Housing costs represent the largest divergence between these two metros. Both buying a home and renting a one-bedroom apartment are substantially more expensive in Denver compared to Birmingham. Birmingham offers a more traditional Southern housing stock, often with larger lots, while Denver's housing market is characterized by a mix of historic and newer construction, often at a premium. Property taxes and insurance costs can also vary, impacting total ownership expenses.
Taxes and everyday costs
Daily expenses for transportation, food, healthcare, and utilities are all notably higher in Denver. While Birmingham's state income tax is slightly higher, this difference is generally outweighed by the higher costs for goods and services in Denver. Commute times are roughly similar, but the overall cost of getting around and maintaining a household budget will be considerably more demanding in Denver.
Lifestyle trade-offs
Beyond costs, a move between these cities offers distinct lifestyle changes. Birmingham experiences a humid subtropical climate with warm summers, while Denver enjoys a semi-arid climate with distinct four seasons, including snowy winters and abundant sunshine. Denver is known for its proximity to mountains and outdoor recreation, while Birmingham offers a rich history and a developing urban core. Both cities have public transit options, but personal vehicles are common in both.
Bottom line
For households considering a move, the financial implications are clear: Birmingham offers a significantly lower cost of living across nearly all categories, especially housing. While Denver provides access to a different climate and outdoor opportunities, it comes with a substantially higher price tag for everyday expenses and homeownership or renting. A household's budget will stretch much further in Birmingham than in Denver.
| Measure | Birmingham, AL | Denver, CO |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 128 |
| Housing index | 58 | 146 |
| Transportation index | 88 | 104 |
| Food index | 85 | 105 |
| Healthcare index | 88 | 108 |
| Utilities index | 92 | 98 |
| Misc index | 75 | 108 |
| Median home price | $198,000 | $548,000 |
| Median 1-bedroom rent | $925/mo | $1,950/mo |
| Average commute | 25 min | 28 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Denver home with the True Cost Calculator.