What are the Cheapest Places to Live in Colorado?

Colorado is known for its mountain scenery, outdoor recreation, and vibrant communities, but living in the Centennial State can come with a high price tag. Housing costs in particular vary significantly depending on where you choose to live.

So, where are the cheapest places to live in Colorado? La Junta, Lamar, Trinidad, Sterling, and Cañon City are five communities worth considering if housing affordability is a priority. As of July 2026, typical home values in all five were well below Colorado's statewide typical home value of $538,932, according to Zillow .

Below, we'll take a closer look at these affordable places to live in Colorado and what each community has to offer.

Is It Expensive to Live in Colorado?

Colorado can be an expensive place to live, particularly when it comes to housing. However, costs vary considerably across the state, and smaller communities can offer more affordable housing than some of Colorado's larger and more competitive real estate markets.

According to Zillow's Colorado housing data , the typical Colorado home value was $538,932 as of July 2026, down 1.7% from the previous year. Zillow also reported a statewide median sale price of $557,149 as of June 2026.

It's important to distinguish between these two figures. Zillow's Home Value Index (ZHVI) measures the typical value of homes in a region, while median sale price reflects the midpoint of homes actually sold during a given period.

The good news for people looking for more affordable housing is that prices vary significantly depending on where you live. Several smaller Colorado communities have typical home values hundreds of thousands of dollars below the statewide figure.

5 Affordable Places to Live in Colorado

Housing is only one part of the overall cost of living, so there isn't a single community that will necessarily be the “cheapest” for every household. Utilities, transportation, food, taxes, insurance, rent, and other expenses can all affect affordability.

For a consistent comparison, the communities below are ordered by their typical home values as reported by Zillow through July 2026. These figures provide a useful look at housing affordability, but they should not be interpreted as a comprehensive ranking of every living expense or every Colorado community.

1. La Junta

Located in southeastern Colorado, La Junta offers some of the most affordable housing among the communities on this list. The city serves as a regional hub in the Arkansas River Valley and offers access to parks, trails, historic attractions, and outdoor recreation.

According to Zillow's La Junta housing data :

• Typical home value: $158,520
• 1-year home value change: -7.8%
• Median list price: $220,000

Housing data through July 2026.

La Junta's typical home value is less than one-third of Colorado's statewide typical home value, making it an option worth exploring for buyers prioritizing lower housing costs.

2. Lamar

Lamar is a small community on Colorado's eastern plains near the Kansas border. The city offers parks, historic sites, and access to outdoor recreation, including nearby John Martin Reservoir State Park. The surrounding region is also known for birdwatching and wildlife viewing.

According to Zillow's Lamar housing data :

• Typical home value: $181,941
• 1-year home value change: -0.7%
• Median list price: $193,500

Housing data through July 2026.

With a typical home value significantly below the Colorado statewide figure, Lamar is another community to consider if affordable homeownership is one of your priorities.

3. Trinidad

Located near the Colorado-New Mexico border, Trinidad combines relatively affordable housing with a rich history. The community was an important stop along the historic Santa Fe Trail and sits near outdoor recreation areas in southern Colorado.

According to Zillow's Trinidad housing data :

• Typical home value: $233,426
• 1-year home value change: -4.9%
• Median list price: $295,417

Housing data through July 2026.

Trinidad's typical home value remains less than half of Colorado's statewide typical value, making it a comparatively affordable option for homebuyers interested in southern Colorado.

4. Sterling

Sterling is one of the larger communities in northeastern Colorado and serves as a regional center for shopping, education, and other services. The city also features public art, parks, and recreational opportunities.

According to Zillow's Sterling housing data :

• Typical home value: $247,046
• 1-year home value change: +1.0%
• Median list price: $249,950
• Average rent: $1,003

Housing and rental data through July 2026.

Sterling's typical home value is less than half the statewide figure. Zillow also reported an average rent of $1,003 as of July 2026, compared with a national average of $1,962.

5. Cañon City

Cañon City sits southwest of Colorado Springs in Fremont County. Its location provides access to hiking, biking, fishing, rock climbing, and other outdoor activities, while its housing costs remain below the statewide level.

According to Zillow's Cañon City housing data :

• Typical home value: $334,912
• 1-year home value change: -2.1%
• Median sale price: $339,833
• Median list price: $385,000
• Average rent: $1,448

Home value, list price, and rental data through July 2026. Median sale price is through June 2026.

Cañon City is the most expensive of the five communities on this list based on typical home value, but its $334,912 typical value remains substantially below Colorado's statewide figure of $538,932.

What Is the Cheapest Place to Live in Colorado?

Among the five communities compared here, La Junta has the lowest typical home value at $158,520 as of July 2026. Lamar follows at $181,941, while Trinidad and Sterling both have typical home values below $250,000.

However, the cheapest place for you to live will depend on more than home prices. Rent, employment opportunities, transportation costs, utilities, taxes, insurance, and other household expenses can vary significantly from one community to another.

If you're considering relocating, compare your expected total expenses in each location rather than choosing a city based solely on its home values.

Are Home Prices in Colorado Going Down?

Statewide home values have declined modestly over the past year. According to Zillow , Colorado's typical home value was $538,932 in July 2026, down 1.7% year over year.

Changes also vary considerably by location. Among the communities on this list, Zillow reported year-over-year declines of 7.8% in La Junta, 4.9% in Trinidad, 2.1% in Cañon City, and 0.7% in Lamar. Sterling moved in the opposite direction, with its typical home value increasing 1.0%.

These figures illustrate why it's important to look at local housing data rather than assuming that every Colorado market is moving in the same direction.

How Do These Cities Compare With Colorado Overall?

The difference between the statewide typical home value and the communities on this list is substantial. As of July 2026:

Source: Zillow Home Value Index, July 2026. Zillow's ZHVI represents the typical value of homes in a given region and is not the same as median sale price.

Even Cañon City, the highest-priced community in this comparison, had a typical home value about $204,000 below the statewide figure.

Finding an Affordable Place to Live in Colorado

Finding an affordable place to live in Colorado doesn't necessarily mean leaving the state or giving up access to outdoor recreation and established communities. Smaller cities such as La Junta, Lamar, Trinidad, Sterling, and Cañon City offer housing costs well below the statewide level.

However, home values are only one part of affordability. Before moving, consider employment opportunities, rental availability, commuting and transportation costs, utilities, insurance, taxes, healthcare, and other expenses that may affect your household budget.

Housing markets also change over time, so check current local market information before making a buying or relocation decision.

Real Estate in Colorado

Colorado's real estate market can look very different depending on the community. Statewide trends don't always reflect what's happening in an individual city, as the differences in home values and year-over-year changes among these five communities demonstrate.

Interested in learning more about the industry? Explore the latest information about the Colorado housing market or find out what's required to earn your Colorado real estate license .