Nicknamed Valley of the Sun, Phoenix is a desert oasis inviting everyone from young families to retirees to enjoy year-round warm weather. Phoenix boasts an outdoor lifestyle with plenty of hiking, swimming, and golfing. Plus, many are moving to the city for its hot housing market.
As the Arizona State Capital, Phoenix is home to 1.6 million people and continues to grow. According to the U.S. Census Bureau, Phoenix has the number one fastest-growing population in the United States.
With so many people moving to Phoenix, how expensive is it to live there?
Cost of Living in Phoenix, Arizona
Phoenix’s overall cost of living is slightly above the national average. Cost of living data shows that you are likely to spend more on housing, utilities, and transportation living in the city. However, you may be able to save money on groceries and healthcare, two categories that rank below the national average.
For comparison, the cost of living in Phoenix is 6% more expensive than in Salt Lake City, Utah, another rapidly-growing community.
Food and Grocery Costs
Phoenix’s trending food scene serves up authentic Southwest tradition mixed with imported flavors. Lunch out in the business district will cost around $15 while dining out for two will cost $48. From food trucks to award-winning restaurants, you’re sure to find something tasty within your budget.
When it comes to eating at home, grocery staples are average, with a dozen eggs costing around $2.80 and a pound of chicken breasts ringing in at $4.22. Of course, grocery prices are continually increasing around the nation, but if you’re moving to Phoenix, groceries shouldn’t impact your budget.
Housing Costs
A growing community brings growing housing costs. According to the University of Arizona, in 2021, Phoenix topped the charts for home price increases at 32%, beating San Diego and Seattle. Price increases are likely due to demand and inventory.
So, what’s the price of a home in Phoenix? The median home price in Phoenix is $346,000, well above the national median home price of $291,000.
However, the cost of homeownership is relative to where you are moving from. For example, Phoenix is seeing a lot of newcomers from California and Colorado, two states where the median home value is much higher. The desert might be a welcome retreat for those who have experienced shopping in higher markets.
The size of Phoenix creates a wide variety of home and lifestyle prices. Try Scottsdale, Paradise Valley, or Arcadia if you are looking to explore more upscale cities in the greater Phoenix area. A few more affordable cities include Gilbert, Glendale, and Chandler.
Average Rent
If you aren’t in the market to buy a home, rent in Phoenix is reasonably priced. The average rent for a one-bedroom apartment is around $1,300. Let’s compare that to a few other western cities. In Denver, Colorado, the average rent for a one-bedroom apartment is $1,700, and in San Diego, California, it is $2,300.
Interestingly, 64% of households in Phoenix are homeowners, while 36% are renters. This might show that people are moving to Phoenix specifically to buy homes.
Transportation costs
Phoenix is not necessarily known for its walkability but has a well-planned transportation network. So, living in Phoenix means planning to drive and planning for high gas prices. Gas prices in Maricopa County, where Phoenix resides, average $4.72 per gallon compared to the national average of $4.23.
Luckily, residents can also try the light rail transportation system or metro bus services to offset high fuel prices. A local bus and light rail pass for the Valley Metro costs $4 a day or $2 for children, seniors, and people with disabilities.
Lifestyle Perk: Outdoor Activities
While it’s crucial to weigh the necessary costs of housing, food, and transportation, it’s also important to consider what kind of lifestyle you will find in Phoenix. With around 330 sunny days a year, there is plenty of time outside.
Sports fans will love the annual tradition of Major League Baseball’s Cactus League Spring Training. Fifteen teams play over 200 games in Phoenix each year. Tickets are affordable, and the spring weather is supreme.
Hiking is another popular pastime, and trails can be found within a short drive no matter where you are in Phoenix. You won’t tire of seeing the beauty of the Sonoran Desert or the insta-worthy city skyline.
Keep in mind that there are some unbearably hot days in The Valley during the summer. When temperatures hit the hundreds, you’ll want to enjoy the air conditioning of Phoenix’s shopping centers and art museums.
Is Phoenix an Expensive City?
Your monthly costs in Phoenix will depend on the above factors. Your lifestyle indeed accounts for much of the cost of living in Phoenix. For more information about homeownership and real estate in Phoenix, visit our Phoenix real estate photography page.
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