A-
4%
Overall NAT. AVG.
12%
Goods & Services NAT. AVG.
3%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Cottonwood Arizona National
Cost of living104101100
Goods & Services112104100
Groceries104102100
Health care8894100
Housing10397100
Transportation105106100
Utilities8595100

An Overview of Cost of Living in Cottonwood, AZ

Knowing the cost of living in Cottonwood allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Cottonwood stands at 104, marking it 4% higher than the national average.

Everyday expenditures like food, housing, goods and services, transportation and health care in Cottonwood are priced in a manner consistent with other areas. This means that residents of Cottonwood can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

Everyday goods and services make up 33% of the cost of living index and include things like clothing, personal hygiene products and entertainment which are a large portion of your monthly expenditures. Unfortunately, Cottonwood goods and services are 12.3% more expensive than the national average, leaving you with less money at the end of the month.

What Do Locals Say About the Cost of Living in Cottonwood?

The real experts on a city are its residents. That's why we reached out to 10 locals to get their views on the cost of living in Cottonwood. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 30% found it budget-friendly with decreasing prices, while 70% said it's simply not affordable as prices have continued to rise.

Is Cottonwood Affordable?

Wondering if Cottonwood is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Cottonwood, for example, the median home price is 5.7% higher than what folks pay nationally, and monthly rent is 4.7% lower than the usual rates. Plus, income levels matter too, with Cottonwood boasting a median household income of $37,146, which is 32.9% lower than the national average.

What Factors can Influence the Cost of Living in Cottonwood?

Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday goods and services like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Cottonwood starts at 5.6% and the income tax rates start at 2.55%.

Utilities: Similar to the prices of any goods or services, utility expenses can fluctuate widely, contingent on variables such as climate, available energy sources, geographical location and state regulations. Costs associated with electricity, water, heating, and waste disposal can differ in magnitude, depending on the specific city or state. In Cottonwood, the utilities index registers at 15% lower than the national average.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Cottonwood, the housing index stands at 2.6% higher than the national average.

Where is the Data From?

The cost of living data in Cottonwood displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in Cottonwood is 3% higher than the Arizona average
  • The cost of living in Cottonwood is 4% higher than the national average
  • Cottonwood housing is 3% higher than the national average
  • Arizona general sales tax is 10% higher than the national average
  • Arizona state income tax is 13% higher than the national average

Most Affordable Places to Live in and Around Cottonwood

See all the best places to live around Cottonwood

Compare Cottonwood, AZ Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$44,959$3,747$1,049$1,349
      Renters$29,886$2,491$697$897

      Arizona Sales Tax

      State General Sales Tax With Max Surtax
      Arizona 5.6% 10.725%

      Arizona Income Tax

      State Income Tax (Low) Income Tax (High)
      Arizona 2.55% 2.98%

      Goods & Services

      Item Cottonwood National avg. Difference
      Haircut $22.83$24.265.9%
      Beauty Salon $38.80$45.5614.8%
      Toothpaste $3.54$3.704.3%
      Shampoo $1.33$1.284.1%
      Movie $11.70$12.133.5%
      Bowling $26.78$18.0048.8%

      Groceries

      Item Cottonwood National avg. Difference
      Ground Beef $5.21$5.8410.7%
      Fried Chicken $1.73$1.579.7%
      Milk $4.78$4.672.4%
      Potatoes $4.05$4.9317.9%
      Pizza $13.22$12.099.4%
      Beer $11.51$10.4110.6%

      Health Care

      Item Cottonwood National avg. Difference
      Optometrist $83.94$125.6833.2%
      Doctor $96.11$135.7829.2%
      Dentist $104.95$113.297.4%
      Ibuprofen $11.06$10.653.8%
      Lipitor $472.82$468.600.9%

      Housing

      Item Cottonwood National avg. Difference
      Home Price $195,200.00$184,700.005.7%
      Avg. Mortgage Payment $2,137.30$2,346.698.9%
      Apartment Rent $904.00$949.004.7%

      Transportation

      Item Cottonwood National avg. Difference
      Gasoline $3.58$3.463.4%
      Tire Balancing $45.24$59.9224.5%

      Utilities

      Item Cottonwood National avg. Difference
      All Electricity $272.57$193.9940.5%
      Phone $184.69$192.253.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Cottonwood CDP, AZ1868613.8%
      Camp Verde, AZ11,2411044.4%
      Lake Montezuma, AZ4,7071055.3%
      Dewey-Humboldt, AZ4,1231087.6%
      Verde Village, AZ12,7801088.2%
      Cottonwood, AZ12,2281043.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Mays Chapel, MD12,22913332.9%
      Ringwood, NJ12,22912828.4%
      Orange City, FL12,232964.1%
      Minneola, FL12,22311212.4%
      Northlake, IL12,2351033.5%
      Cottonwood, AZ12,2281043.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.