B-
16%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
49%
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 Peoria Arizona National
Cost of living116101100
Goods & Services102104100
Groceries98102100
Health care8794100
Housing14997100
Transportation95106100
Utilities12495100

An Overview of Cost of Living in Peoria, AZ

Knowing the cost of living in Peoria 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 Peoria stands at 116, marking it 16% higher than the national average.

Housing costs significantly influence the Peoria cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 49.3%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.

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

Locals have the inside scoop on their city. So, we polled 16 residents in Peoria to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 69% find it reasonable with decreasing prices, but 31% think it's quite pricey, with prices that continue to rise.

Is Peoria Affordable?

Wondering if Peoria 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 Peoria, for example, the median home price is 52.8% higher than what folks pay nationally, and monthly rent is 41.2% higher than the usual rates. Plus, income levels matter too, with Peoria boasting a median household income of $76,423, which is 38.1% higher than the national average.

What Factors can Influence the Cost of Living in Peoria?

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Peoria, the baseline sales tax rate begins at 5.6%, and income tax rates start at 2.55%.

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Peoria, the transportation index is 4.7% lower than the national average.

Where is the Data From?

The cost of living data in Peoria 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 Peoria is 16% higher than the Arizona average
  • The cost of living in Peoria is 16% higher than the national average
  • Peoria housing is 49% higher than the national average
  • Arizona general sales tax is 10% higher than the national average
  • Arizona state income tax is 4% lower than the national average

Most Affordable Places to Live in and Around Peoria

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Compare Peoria, 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$89,936$7,495$2,098$2,698
      Renters$49,986$4,166$1,166$1,500
      The affordability of the housing market in Peoria, AZ as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Peoria homeowners, the median income is $89,936. This indicates that a monthly maximum of $2,098 should be spent by homeowners on all housing related costs. Renters have a median income of $49,986. This indicates that renters would have a maximum of $1,166 for their rent related monthly costs.

      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 2.5% 2.5%

      Goods & Services

      Item Peoria National avg. Difference
      Haircut $26.78$24.2610.4%
      Beauty Salon $54.44$45.5619.5%
      Toothpaste $3.44$3.707.0%
      Shampoo $1.39$1.288.3%
      Movie $9.96$12.1317.9%
      Bowling $15.56$18.0013.6%

      Groceries

      Item Peoria National avg. Difference
      Ground Beef $6.08$5.844.1%
      Fried Chicken $1.47$1.576.6%
      Milk $4.91$4.675.1%
      Potatoes $4.66$4.935.6%
      Pizza $13.34$12.0910.4%
      Beer $11.24$10.417.9%

      Health Care

      Item Peoria National avg. Difference
      Optometrist $102.06$125.6818.8%
      Doctor $93.86$135.7830.9%
      Dentist $100.07$113.2911.7%
      Ibuprofen $10.95$10.652.8%
      Lipitor $524.80$468.6012.0%

      Housing

      Item Peoria National avg. Difference
      Home Price $282,200.00$184,700.0052.8%
      Avg. Mortgage Payment $3,647.01$2,346.6955.4%
      Apartment Rent $1,340.00$949.0041.2%

      Transportation

      Item Peoria National avg. Difference
      Gasoline $3.66$3.465.9%
      Tire Balancing $61.78$59.923.1%

      Utilities

      Item Peoria National avg. Difference
      All Electricity $147.32$193.9924.1%
      Phone $190.63$192.250.8%
      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.
      Goodyear Village, AZ2778613.9%
      Deer Creek, AZ184945.6%
      Youngtown, AZ6,8371000.3%
      Sun City, AZ38,8881021.9%
      Tolleson, AZ7,3401000.2%
      Peoria, AZ172,10911616.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Pembroke Pines, FL171,97912121.5%
      Salem, OR171,80611616.1%
      Garden Grove, CA172,80015958.9%
      Elk Grove, CA173,37014444.2%
      Sherbrooke, QC170,686n/a 
      Peoria, AZ172,10911616.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.