This Colorado Town Is One of the Most Expensive Places to Retire. Here’s Why

If you or your spouse is approaching retirement, congratulations. You may be among the growing number of retirees considering a move to a new location for your post-career life. If so, it’s essential to plan for costs carefully, particularly given the limited finances most retirees have to work with. Housing, healthcare, taxes, and daily living expenses all play a role in determining whether a place is a good financial and personal fit.

Castle Rock, Colorado, is a popular town for retirees seeking beautiful landscapes, easy access to outdoor recreational activities, and proximity to a major urban center. However, it’s also one of the more expensive cities for retirees in the U.S. 

Below, we’ll examine the cost of housing, local taxes, healthcare, and other factors you should consider if you’re considering retiring in Castle Rock.

Understanding the Costs

Property Prices

With a population of 86,434, Castle Rock is among the largest towns in Colorado. Population growth in recent years has fueled tremendous growth in the Castle Rock housing market, and median home prices across Douglas County are now a whopping $674,000. This is considerably higher than the U.S. median of around $400,000. Given that median county household income is close to $146,000, higher-than-average home prices may be a given.

Home values in Castle Rock may be as high as they are because the housing supply is limited, retirees are increasingly interested in the area, and the town is only half an hour away from Denver. Retirees looking to downsize to a smaller home or one with just a single level will find it especially difficult to find appropriate listings, and competition will likely be intense.

Healthcare Costs

Castle Rock’s proximity to Denver—just 38 miles from the Denver International Airport—is a major draw, but it also means that many retirees in the area rely on metropolitan medical facilities for advanced care. This may increase travel time, costs, and waits for available appointments.

While Castle Rock and its immediate environs offer quality medical services at 17 facilities county-wide, specialized services may only be available in Denver or farther afield.

On the other hand, retirees requiring regular care or advanced services may find that the proximity to Denver is a major perk despite the higher costs.

Local Taxes

Castle Rock’s local sales tax rose to 4.2% in early 2025, which, when added to Colorado’s statewide sales tax of 2.9%, brings the combined rate to 7.1%. This is moderate compared to other U.S. cities.

Social Security benefits are not taxed in Colorado, but some other forms of retirement income may be subject to tax. Further, property taxes in Castle Rock, though lower in percentage compared to national averages, may nonetheless be high in dollar amount as a result of the correspondingly high value of most homes in the area.

What Makes Castle Rock So Expensive?

Scenic Location and Proximity to Denver

Castle Rock’s location between Denver and Colorado Springs perfectly balances small-town charm and easy access to a big city. It takes less than 45 minutes to drive to either of the larger cities from Castle Rock.

Castle Rock is also known for its scenic beauty and open space, offering retirees a stunning setting that still maintains convenience. Of course, this combination of natural beauty and accessibility comes at a cost, as it increases demand and real estate prices.

Desirable Real Estate Market

Castle Rock is also among the fastest-growing communities in Colorado. As such, housing demand has accelerated, and it’s likely to continue going forward. This is exacerbated by the fact that many new developments cater to high-income buyers, which means affordable home options are few and far between. Retirees may find that even smaller homes or condos are priced beyond their means, particularly if they are moving from a market that is less expensive.

High Living Standards

Outdoor enthusiasts flock to Castle Rock for its extensive trail systems, parks, recreation centers, and other offerings. The city is also known for its public safety and community engagement. Of course, these draws also bring higher price tags for homes in the area.

Retirement Considerations in Castle Rock, CO

Pros: High Quality of Life and Nature Access

If your dream is to have easy access to beautiful natural attractions like the Rocky Mountains, Castlewood Canyon State Park, Philip S. Miller Park, and Ridgeline Open Space, Castle Rock is likely a top destination of yours.

Retirees’ quality of life is further boosted by the town’s proximity to Denver, which means access to a plethora of cultural offerings, including the Denver Art Museum, music venues, theaters, and top-ranked hospitals.

Finally, Castle Rock retains a small-town atmosphere, including walkability in many neighborhoods, and infrastructure that can support an active lifestyle in retirement.

Cons: High Cost of Living and Limited Affordable Housing

With median monthly housing costs of nearly $2,400, monthly food costs of more than $700, and monthly transportation costs close to $1,400, residents of Castle Rock pay a hefty price for the beauty and charm of this growing town. The cost of living is well above the national average, particularly in housing, healthcare, and utilities. Retirees moving to the area will find that affordable housing is in short supply, with few low-cost options being built by developers.

The Bottom Line

Castle Rock is one of Colorado’s most beloved retirement destinations, partly because it combines a small-town feel with easy access to Denver and Colorado Springs.

However, this scenic town is inaccessible to many retirees with strict spending limits due to fixed incomes, as housing and everyday costs tend to be quite high. Although the town is growing quickly, many new residents have high incomes, and developers in Castle Rock tend to cater to this clientele by building homes with hefty price tags.