| Index | Tempe | Arizona | National |
| Cost of living | 119 | 101 | 100 |
| Groceries | 102 | 101 | 100 |
| Health care | 100 | 101 | 100 |
| Housing | 150 | 96 | 100 |
| Transportation | 102 | 102 | 100 |
| Utilities | 110 | 111 | 100 |
| Lifestyle & Entertainment | 107 | 103 | 100 |
| Household Items | 99 | 101 | 100 |
| Education & Childcare | 121 | 103 | 100 |
Are you thinking about relocating, but curious about the potential cost of living in Tempe? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Tempe stands at 119, making it 19% higher than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
Housing costs make up a big chunk of the cost of living in Tempe, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 49.9% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
Nobody knows their city better than the people who actually live there. So, we asked 5 local residents how they would rate the cost of living in Tempe and this is how they responded. 60% of people said that the cost of living was affordable, with prices decreasing, while 40% of people said that the cost of living was very expensive and prices continue to rise.
Is Tempe an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Tempe, the median home price is 60.1% higher than what most folks pay across the country, and monthly rent prices are 26.1% higher than the usual rates. Income levels in Tempe come in at $91,046, which is 11.9% higher than the national average.
Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Tempe, the groceries index is 1.9% higher than the national average.
Transportation: In areas where public transportation is scarce or unavailable, residents often find themselves compelled to own and upkeep vehicles, thereby increasing the overall cost of living. Monthly expenses encompass fuel, insurance, routine maintenance and potentially lease or financing payments. In Tempe, the transportation index is 2.1% higher than the national average.
Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Tempe, the utilities index stands at 10.2% higher than the national average.
The Tempe cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| 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 | $137,125 | $11,427 | $3,199 | $4,114 |
| Renters | $70,855 | $5,905 | $1,653 | $2,126 |
| 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% |
| Maricopa Colony, AZ | 836 | 98 | 1.6% |
| Gila Crossing, AZ | 678 | 100 | 0.0% |
| Tempe, AZ | 197,595 | 119 | 18.6% |
| City | Population | Cost of Living Index | National Avg. |
| Burlington, ON | 197,435 | n/a | |
| Mobile, AL | 197,324 | 91 | 8.8% |
| Overland Park, KS | 197,888 | 114 | 14.1% |
| Shreveport, LA | 197,125 | 95 | 5.3% |
| Grand Prairie, TX | 198,327 | 100 | 0.1% |
| Tempe, AZ | 197,595 | 119 | 18.6% |
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