| Index | Phoenix | Arizona | National |
| Cost of living | 113 | 101 | 100 |
| Groceries | 104 | 101 | 100 |
| Health care | 102 | 101 | 100 |
| Housing | 132 | 96 | 100 |
| Transportation | 105 | 102 | 100 |
| Utilities | 113 | 111 | 100 |
| Lifestyle & Entertainment | 104 | 103 | 100 |
| Household Items | 102 | 101 | 100 |
| Education & Childcare | 105 | 103 | 100 |
Knowing the cost of living in Phoenix 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 Phoenix stands at 113, marking it 13% higher than the national average.
Housing costs are a major factor in the Phoenix cost of living index, and they often eat up a big chunk of your take-home pay. Unfortunately, in this area, housing expenses for both homeownership and rentals were 32% higher than what's typical in an average city. That includes the prices of homes and rents, as well as mortgage rates and insurance.
Locals have the inside scoop on their city. So, we polled 34 residents in Phoenix 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? 59% find it reasonable with decreasing prices, but 41% think it's quite pricey, with prices that continue to rise.
Is Phoenix affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Phoenix, the median home price is 39.8% higher than the national average and monthly rent prices are 13.9% higher than the typical rates. Additionally, the median income levels play a role in affordability, with Phoenix boasting a median household income of $90,751, 11.6% higher than the national average.
Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including 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 offering fewer subsidies may experience a rise in their cost of living.
Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.
Transportation: In cities with limited or no public transportation, residents may find it necessary to own and maintain vehicles, thereby elevating the cost of living. Monthly expenditures include fuel, insurance, routine maintenance and potential lease or financing commitments. In Phoenix, the transportation index stands at 4.9% higher than the national average.
The cost of living data for Phoenix shown above is based on a U.S. average baseline score of 100, making it easier to compare how far your dollar may go from one city to another. Housing uses U.S. Census home price and rental data, while all remaining values are AI-assisted estimates informed by regional pricing, climate, transportation dynamics, and local economic factors. These scores are best used for directional comparisons between cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $121,304 | $10,109 | $2,830 | $3,639 |
| Renters | $66,547 | $5,546 | $1,553 | $1,997 |
| State | General Sales Tax | With Max Surtax |
| Arizona | 5.6% | 10.725% |
| State | Income Tax (Low) | Income Tax (High) |
| Arizona | 2.5% | 2.5% |
| City | Population | Cost of Living Index | National Avg. |
| Santa Cruz, AZ | 59 | 102 | 2.4% |
| Komatke, AZ | 903 | 95 | 4.9% |
| Guadalupe, AZ | 6,820 | 97 | 3.5% |
| Gila Crossing, AZ | 678 | 100 | 0.0% |
| Youngtown, AZ | 7,044 | 100 | 0.4% |
| Phoenix, AZ | 1,698,457 | 113 | 12.9% |
| City | Population | Cost of Living Index | National Avg. |
| Philadelphia, PA | 1,632,157 | 102 | 2.0% |
| Montréal, QC | 1,811,008 | n/a | |
| San Antonio, TX | 1,573,237 | 100 | 0.3% |
| San Diego, CA | 1,466,871 | 176 | 76.0% |
| Dallas, TX | 1,391,819 | 107 | 7.0% |
| Phoenix, AZ | 1,698,457 | 113 | 12.9% |
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