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Colorado Scorecard Highlights Escalating Cost of Living Pressures

For media inquiries, please contact Cynthia Eveleth-Havens at [email protected].

DENVER – The Colorado Chamber of Commerce today released its updated Colorado Scorecard for 2025, a dashboard that annually tracks metrics related to Colorado’s competitiveness, economy and key industries to inform the public about the state’s economic outlook.

This year’s data presents a mixed outlook for Colorado. The state saw improvements in quality-of-life indicators, health rankings and some economic metrics, but those gains are offset by rising cost of living burdens and economic pressures that could hinder Colorado’s competitiveness. Additionally, while the state’s cost of doing business ranking improved slightly, Colorado is still among the bottom of the pack compared to other states as employers face major regulatory strains.

“Colorado’s strengths remain clear, but the state’s rising cost of living is becoming impossible to overlook,” said Colorado Chamber President and CEO Loren Furman. “The findings reinforce what we’re hearing directly from employers: increased costs are making it harder to grow and compete for top talent. These trends will not correct themselves – they require action. As we approach the 2026 legislative session, the Chamber will continue to advocate for balanced policies that address these issues head on.”

Several metrics highlighted areas of progress, including increased funding for higher education and health outcomes that remain among the best in the nation. Colorado’s best state for business ranking also improved, largely due to strong infrastructure and workforce categories. These strengths contribute to the state’s appeal on the national level but coincide with significant challenges. Colorado’s economy ranking fell from fourth to sixth, cost-of-living measures declined across nearly every category, and homelessness and poverty increased among both adults and children. The state also declined on all tax burden rankings, from corporate to individual.

As a key component of the Colorado Chamber’s Vision 2033 strategic action plan, the Colorado Scorecard tracks more than 80 data points, up from about 60 when it was introduced in October 2023. It compiles annual rankings, statistics and surveys to assess where Colorado stands and to monitor progress over time. The Scorecard has been updated for 2025 with the latest available data for each metric, including new indicators on home insurance costs, research and development funding, and outdoor recreation access.

Key findings of the 2025 Colorado Scorecard data:

Where Colorado is dropping:

  • Colorado’s best economy ranking dropped from 4th to 6th, pushing the state out of the top five.
  • The state’s cost of living ranking fell from 46th to 47th, highlighting affordability challenges. 
  • Colorado’s housing affordability ranking dropped slightly from 47th to 48th and the home ownership rate decreased. 
  • Two new rankings added this year highlight Colorado’s elevated homeowners’ insurance rates. Annual rates increased by an average of $1,912, a 47% rise from the previous year, making Colorado the 4th most expensive state in the nation.
  • Every tax ranking metric tracked by the Scorecard saw declines in 2025, including corporate, individual and business taxes.
  • The energy ranking declined from 16thto 19th.
  • Colorado’s best state to start a business ranking dropped from 7th to 8th. 
  • Despite increases in GDP, Colorado’s GDP ranking declined from 15th to 17th.
  • The state’s unemployment rate increased. 
  • The annual cost of childcare increased to $20,978 for infants and $17,479 for toddlers.
  • The average cost of health insurance increased to $554 per month.
  • Colorado’s public safety ranking slightly declined from 48th to 49th. 
  • Poverty rates among adult and children both increased. 
  • The number of homeless individuals in the state is rising. 
  • The number of manufacturing jobs and companies declined, indicating struggles in that sector. The manufacturing share of jobs also decreased.
Where Colorado is improving:

  • Colorado’s best state for business ranking moved from 16th to 11th, returning to its 2023 ranking.
  • The state’s cost of doing business ranking improved slightly from 39thto 38th.
  • Colorado continues to rank high in well-being indicators, ranking 3rd for wellness and 2nd in healthiest states.
  • Colorado is now the state with the lowest overall obesity ranking, moving from 2nd to 1st in that category.
  • Colorado’s GDP has increased to $557 billion and GDP per capita has also increased. 
  • Colorado’s tourism industry improved across every metric tracked by the Scorecard.
  • A new metric added for 2025 demonstrates Colorado’s strength in outdoor recreation, with the state ranking 3rd in outdoor activity access.
  • The number of new business startups, including women- and minority-owned businesses, is increasing.
  • There are more open jobs and apprenticeships available. 
  • The ranking for state and local funding for higher education jumped from 15th to 9th.
  • The high school graduation rate is on the rise. 
  • The number of houses sold increased significantly and the median house price decreased slightly after increasing in previous years. 
  • The state’s infrastructure ranking improved from 12th to 11th.  
  • Colorado research and development ranking moved from 5th to 4th nationally.

 

 

View the full scorecard here: https://cochamber.com/scorecard/

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The Colorado Chamber of Commerce champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve the business climate for all sizes of business from a statewide, multi-industry perspective. What the Colorado Chamber accomplishes is good for all businesses, and that’s good for the state’s economy. It was created in 1965 based on the merger with the Colorado Manufacturers’ Association