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dszc/E+/Getty Images November 11, 2022 Kacie Goff is a personal finance and insurance writer with over seven years of experience covering personal and commercial coverage options. She writes for Bankrate, The Simple Dollar, NextAdvisor, Varo Money, Coverage, Best Credit Cards and more. She's covered a broad range of policy types — including less-talked-about coverages like wrap insurance and E&O — and she specializes in auto, homeowners and life insurance. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. With the exception of San Antonio, Texas, no city in the U.S. has been growing like Phoenix. Census data showed that it added between July 2020 and July 2021. Add balmy winters and an exploding housing scene to a relatively low cost of living and it’s no surprise people are flocking to Arizona’s capital city. If you’re thinking about joining this rapidly growing city of , you’re probably wondering: How much does living in Phoenix cost? Surprise, surprise — living in this metropolitan area might actually be cheaper than living elsewhere in the state. So let’s break the Phoenix cost of living down, component by component. Housing costs
The good news: You’ve got excellent timing here. Phoenix home price growth topped pretty much anywhere else in the country for a while there. But the market now, making it a better time to . That’s true across the country, though, so let’s get a better feel for home and rental prices in Phoenix, specifically. In Q3 of 2022, the most recent quarter for which the National Association of Realtors has published data, the average single family home in Phoenix was for $474,400. That’s a more than $20,000 drop from the previous quarter — great news if you’re trying to buy (but less-that-ideal if you want to . If you plan to rent, you’ll also be glad to know that both national and Phoenix rent costs have started to dip. This summer, Realtor.com that the median rent price in the metro area was $1,647. For a studio, you’re looking at about $1,300, on average. Go up to a two-bedroom and be ready to pay somewhere around $1,800. Ultimately, whether you want to or rent, your timing isn’t bad. As the market cools, prices should continue to go down. Job market in Phoenix
Our deep dive into the Phoenix cost of living wouldn’t be complete without evaluating the job market. It’s great if things are affordable, after all, but if opportunities and salaries are pitiful, even a cheap area can be a struggle. Happily, the job market looks good, with when you look at data over the course of a year. In 2020, census data put the median Phoenix household’s income at . As with anywhere in the U.S., the amount you can expect to take home depends on your industry and role. To give you a decent idea of what to expect, though, here are some average Phoenix salaries from : Architecture & Engineering: $87,087 Business & Financial Operations: $69,208 Construction & Extraction: $50,322 Education, Training, & Library: $48,813 Food Preparation & Serving Related: $28,954 Healthcare Practitioners & Technical: $80,560 Legal: $77,104 Personal Care & Service: $30,238 Sales & Related: $34,358 More good news: Compensation in Phoenix has ticked up , according to the Bureau of Labor Statistics (BLS). As far as , you can expect a broad range across industries. The top five largest employers in the area are: Banner Health American Express Amazon Honeywell Walmart Food costs
How much does living in Phoenix cost? That depends, of course, on how you keep yourself fed there. Going back , the average single adult in Phoenix should budget about $4,000 a year for food costs. A household of two adults and three children should plan to spend around $14,000 on food annually. The Economic Policy Institute’s comes up with estimates a little below MIT’s. All of this assumes that you’re cooking at home, though. If you love dining out, add more to your budget here. Phoenix has a burgeoning restaurant scene with a lot of exciting eateries. Transportation in Phoenix
While the Phoenix cost of living comes out pretty favorably for housing and dining, getting from A to B can eat up a fair chunk of your budget. In fact, the city ranks high in terms of metro areas where residents spend on transportation. In 2020, Phoenix-area households spent on transportation (vs a national average of 16.2 percent), according to the BLS. Phoenix does have that you can ride for $4 a day, or $6.50 if you want to take express buses. But mainly it’s a car-culture town. Of the in Phoenix, 97 percent was spent buying and maintaining private vehicles, the BLS says. Plus, while getting around in Phoenix might eat up some of your budget, it shouldn’t take up too much of your day. The average Phoenix resident commutes to get to work. Local state property taxes and fees
When you’re figuring out — or if you should move to Phoenix in general — don’t forget about taxes. Arizona property taxes are pretty low, overall, statewide. However, Maricopa County, where Phoenix is located, charges some of the highest rates (though not the very highest). The Greater Phoenix Economic Council says you should budget around $5,000 in property taxes if you’re buying a median-priced home. As far as personal income tax goes, Arizona plans to move to next year, making it one of the lowest tax tables in the nation. Ultimately, Arizona’s low tax rates make Phoenix a particularly appealing choice. Moving to Phoenix
Clearly, Phoenix cost of living has a lot to offer. As housing and rental prices come down, it should get increasingly feasible to set up a comfortable life there. To crunch the numbers yourself, you can use our . If you live elsewhere Arizona, you might consider and relocating to this flourishing metro area. And if you’re not yet an Arizonan, Phoenix — with its stable job market, and growing food and culture scene — can offer you a great place to jump into the Grand Canyon State. Just make sure you . FAQs
How much does it cost to live in Phoenix each month
That depends on whether you want to rent or , how much living space you need, whether you eat out or cook and how you plan to get around.If you want a quick answer, though, indicates the cost of living in Phoenix runs the average single adult about $36,500, while a family of five with two working adults should expect to need roughly $110,00 to get by.
What s the cost of living in Phoenix compared to Arizona overall
Phoenix is slightly more affordable than the state as a whole.
What s the cost of living in Phoenix compared to Tucson
It costs less to live in Tucson than Phoenix, but
How do Phoenix s housing costs and average salary impact the overall cost of living
Housing is the largest expenditure for Phoenix-area households, averaging an annual in 2021. But that’s changing as the housing market cools significantly. Assuming home prices continue to drop off while unemployment declines or stays steady, Phoenix should become an increasingly affordable place to live. SHARE: Kacie Goff is a personal finance and insurance writer with over seven years of experience covering personal and commercial coverage options. She writes for Bankrate, The Simple Dollar, NextAdvisor, Varo Money, Coverage, Best Credit Cards and more. She's covered a broad range of policy types — including less-talked-about coverages like wrap insurance and E&O — and she specializes in auto, homeowners and life insurance. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Related Articles