What Is The Cost of Living In Phoenix?

Estimated monthly cost for a family of four is $3,250 (excluding rent). A single person will spend an estimated $927.89 per month (excluding rent). What are the other costs of living in Phoenix? Learn in this article.
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Cost of Living In Phoenix
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A single person will spend an estimated $927.89 per month (excluding rent). What are the other costs of living in Phoenix? Learn in this article.

The cost of living in Phoenix, AZ is lesser than 67 percent of cities in the country. Also, the cost of living in Phoenix is lesser than in 62 percent of cities in North America. Lastly, the cost of living in Phoenix, AZ is costlier than in 62 percent of cities in the world.

Planning a move to Phoenix? You are likely wondering whether settling there for you is affordable. Our cost of living in Phoenix guide shows low housing costs, low-income taxes, and low rental rates in the city.

Also, Phoenix is developing faster, but there are still deals to be discovered. If you are looking to rent a space in Phoenix, you will want to know the cost of living here. 

Whether you are relocating from one place to another in Arizona, planning a move across the country, or even considering the new neighborhood in Phoenix, understanding how Phoenix stands against other places can help you make a better decision.

In this guide, we will break down all you should know about the cost of living in Phoenix to assist you with your moving budget. 

How much does it cost to reside in Phoenix?

Area Vibes reported that the overall cost of living index score of Phoenix is 98%, which is 2% below the national average. The cost of the living index shows how costly (or cheaper) it is to reside in a certain city. If the index score of a city is above 100, then the cost of living is more than average. If the index score of a city is less than 100, then the cost of living is not up to the average.

Below is what you should know about Phoenix’s cost of living as well as the cost to live there. 

Phoenix Housing Costs

When looking into affordability, Phoenix is somewhere in between. It is not a highly expensive city, but it is not extremely cheap. With that, rent prices in Phoenix are still reasonable. We see from our Phoenix rent report that the average price for a 1-bedroom apartment is $1,142. A 2-bedroom apartment will normally cost about $1,394. This is cheaper than rent prices charged in comparable cities. 

Most residents of Phoenix are homeowners, but the housing market in the city doesn’t have much value like other major big cities in the western part of the country. For instance, a single-family home in Los Angeles has an average sales price of $576,100, as reported by the National Association of Realtors. 

That number increases to $626,000 in San Diego. Meanwhile, the average in Phoenix is $272,700. If you are choosing whether to buy or rent, you should understand that rents in Phoenix leave so many opportunities for renters.

For people that will go for a smaller apartment, the averages for a studio ($707) and 1-bedroom ($859) are about $120 and $88 cheaper than their respective average in the country. This applies to both 2-bedroom and 3-bedroom apartments too. 

Pro Tips

Pro Tip

If you plan to save money on a Phoenix apartment, you might try to get roommates and split rent costs. Usually, studio apartments can also cost lesser than 1-bedroom apartments. A studio can be a better option if you need just a little space.

Utility Costs in Phoenix

Renters and buyers in Phoenix are both required to pay for their utilities. Numbeo.com (May 2019) revealed that the median basic utility bundle for a 915-square foot space in Phoenix runs at $159.19 per month. That covers electricity, garbage, water, and heating, and it is around $17.10 costlier than the country’s average of $152.09. Internet will set you back for about $74.35 a month in the city, which is expensive than the national average of $62.52

Costs of Food in Phoenix

Phoenix is for food lovers, but you won’t have to spend all your weekly earnings to have a nice meal. If you are on your way to the Business District to have lunch and a drink, you can prepare to get things cheaper: you can feed on an average of $13 at the noon hour. Two people having a three-course meal at a mid-level restaurant will cost you about $50 (right in the middle of the national average), and you need just $4.19 for your morning cappuccino.

You will spend a bit less than the national average for your grocery bill, with beer and milk not so costly and pizza cost a bit more. In general, residents of Phoenix spend around 13.9% of their earnings on food. 

Healthcare Costs in Phoenix

The cost of healthcare is on the rise all over the country. These increased costs will move with you to Phoenix. A single adult can prepare to spend $2,763 on healthcare per annum. That amounts to $7,455 for a four-person family. You importantly need to locate a healthcare plan that perfectly suits your needs as well as that of your family’s needs. Fortunately, you can look around and apply online for the ideal healthcare plan through Healthcare.gov. You also can check the state health insurance resource center of Arizona for better resources on selecting the best healthcare plan.  

Phoenix Taxes

Phoenix is a city located in Maricopa County. The median rate of property tax across the county is only 0.68%, which is cheaper than the 0.77% average of Arizona. Together with low property taxes, residents of Arizona pay low taxes on their income as well. Income tax rates in Arizona start from 2.59% – 4.54%, based on your income cap. Sadly, the sales tax is high in Phoenix, though. Its residents pay 8.6% of the sales tax rate. This includes a combination of Arizona sales tax rate (5.6%), together with a combined city/county rate (3 percent). 

Transportation Costs

Taking public transit in Phoenix is amazingly accessible for residents with the continuously expanding routes, Employer Pass programs, and cheap passes of the Metro System in the city. You only pay $4 for unlimited day passes on light rail, buses, and LINK, while you pay $2 for a 1-way ride. You can always get monthly passes and student discounts, so you can make your transport needs convenient and complete some reading while you get around. If you choose to drive, gas prices are just a little bit cheaper than the country’s average, and the desert climate implies that you won’t need to stress about the extreme effects of winter on your car. 

Salaries and Income

Residents of Phoenix might be on the extreme lower part of the income scale when compared to the country’s average, but with its low cost of living, it is not a restraining factor. The average household income in the city is about $46,000, and families have an average income of $57,170. The women population makes above the national average in Phoenix. So, moving to Phoenix should be greatly considered among ladies. 

FAQ about Phoenix Cost of Living

What is the amount I need in Phoenix to live conveniently?   

Focusing on Phoenix, the median rent price for a 1-bedroom apartment is $1,545 per month. Living comfortably in Arizona requires a renter to earn a minimum of $4,635 before taxes every month. This equals a yearly pre-tax income of $55,620

Why is rent in Phoenix so high? 

The cost of renting an apartment or home in the city continues to increase, and it is a result of the thriving housing market. Those who need s space to rent don’t have many options and some are even being evicted from their existing rentals. 

Is $100k a good income in Arizona?

If you can get a six-figure salary, it will be perfectly enough to live in Phoenix as GoBankingRates reported the less-than-average taxes as well as low health care costs in the city ($5,681 average yearly costs) as factors necessitating more of that $100k income. 

What does it cost to live in Phoenix vs. Denver?

Checking the cost of living in Denver against Phoenix can assist you plan the upcoming phase if you are looking at various cities you might want to live in. when you check the two cities inside a cost of living calculator, you will discover that it is much cheaper to live in Phoenix. The total cost of living is around 15 percent cheaper in Phoenix than in Denver, with the median housing cost totaling at over 28% lower.  

What is the least expensive rent in Phoenix? 

Phoenix is no doubt a big city, so you can conveniently find everything from highly affordable apartments to luxury homes. The least expensive rent in Phoenix often costs about $600 monthly, and you can find numerous choices in the $700 – $800 monthly range. In general, Phoenix offers many types of apartments. That implies that as long as you plan your budget carefully and consider your choices for neighborhoods as well as units to rent, you will certainly find the right place in Phoenix that suits your budget while providing a great space for you to live in. 

Are You Ready To Move To Phoenix?

Making a comparison of the cost of living in Phoenix to other locations can help you choose if moving to this amazing city is good for you. Phoenix offers different options, so you can just find housing and more that works for your budget when you know the right place to look.

If relocating to Phoenix is in your plan, we can help bring it into a reality. For assistance on the best moving company, check the wide network of reliable moving companies in Phoenix on Moving APT.   

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