Moving to a new location like Phoenix, AZ, can be a very exciting adventure, but it can also mean having a higher cost of living. The cost of living is often used to compare the affordability of living in one city compared to another.
Simply put, the cost of living is the amount of money necessary to cover one’s basic expenses in a particular location and time period. This includes housing, food, transportation, and healthcare.
If you are considering relocating to Phoenix, we recommend that you check the cost of living in this city and compare it with that of your current residence. It will be advantageous for you to know whether this city is more affordable or more expensive than your present location.
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What Is the Cost of Living in Phoenix, AZ?
The average cost of living in Phoenix Arizona (2023) is $2,566. To live comfortably in this city, a minimum annual income of $79,200 is recommended for an individual with a family and $59,600 for a single person.
Cost of Living Index: Phoenix, AZ
A cost-of-living index is particularly helpful if you are considering moving to Phoenix, AZ, and you want to see if living in this city would be beneficial for you and your family, given your projected income.
Below is a table showing the cost-of-living indexes for Phoenix, Arizona, along with the state indexes, to give you an idea of how expensive or affordable the basic expenses in this location are relative to the rest of the country.
It is important to note that the indexes are based on a national average of 100. So, for example, if the COL index of housing in Phoenix is 118.6, then it is 18.6% higher than the national average.
| Cost of Living | Phoenix | Arizona | United States |
|---|---|---|---|
| Overall | 113 | 106.4 | 100 |
| Grocery | 97.3 | 96.1 | 100 |
| Healthcare | 92.5 | 97.3 | 100 |
| Housing | 118.6 | 119.7 | 100 |
| Utilities | 101.8 | 102.7 | 100 |
| Transportation | 117.9 | 107 | 100 |
| Miscellaneous | 105.7 | 93.7 | 100 |
As you can see from the table above, living in Phoenix, AZ, is 13% more expensive relative to the rest of the country. The highest expense is Housing, at an index of 118.6, while Grocery and Healthcare are lower than the national average.
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Housing Costs in Phoenix
A typical home in Phoenix, AZ, costs $413,000, which is 22.2% higher compared to the national average of $338,100 and 1.4% more expensive than the state average of $407,400.
The average cost of rent in Phoenix for a two-bedroom unit is $1,770 per month. This is 23.8% higher than the national average of $1,430 and 12.4% more expensive than the state average of $1,550.
| Monthly Rent | Phoenix, AZ |
|---|---|
| 1-Bedroom Apartment in City Center | $1,893.48 |
| 1-Bedroom Apartment Outside of Center | $1,629.52 |
| 3-Bedroom Apartment in City Center | $3,150.65 |
| 3-Bedroom Apartment Outside of Center | $2,737.57 |
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Grocery Shopping and Food Costs
As shown in the cost-of-living index table presented above, the average cost of groceries in Phoenix, AZ, is 2.7% lower compared to the national average.
The tables below show the average costs of food and grocery items, as well as the cost of dining at restaurants, to give you a better idea of how much you’ll be spending once you move to the Valley of the Sun.
| Item | Phoenix, AZ |
|---|---|
| Meal at an Inexpensive Restaurant | $20.00 |
| Three-Course Meal for 2 People at a Mid-Range Restaurant | $80.00 |
| Combo Meal at a Fast-Food Restaurant | $12.00 |
| Domestic Beer (0.5-liter draught) | $6.00 |
| Imported Beer (0.33-liter bottle) | $6.38 |
| Cappuccino (regular) | $5.68 |
| Coke/Pepsi (0.33-liter bottle) | $2.96 |
| Water (0.33-liter bottle) | $2.42 |
| Milk (1 liter) | $0.98 |
| Loaf of Fresh White Bread (500g) | $3.74 |
| Eggs (regular, 12) | $3.91 |
| Rice (white, 1kg) | $4.01 |
| Local Cheese (1kg) | $11.22 |
| Beef Round Back Leg Red Meat (1kg) | $14.15 |
| Apples (1kg) | $4.70 |
| Bananas (1kg) | $1.46 |
| Oranges (1kg) | $4.22 |
| Tomatoes (1kg) | $4.01 |
| Potatoes (1kg) | $3.07 |
| Onions (1kg) | $2.74 |
| Lettuce (1 head) | $1.91 |
| Water (1.5-liter bottle) | $2.35 |
| Bottle of Wine (Mid-Range) | $14.00 |
| Domestic Beer (0.5-liter bottle) | $2.10 |
| Imported Beer (0.33-liter bottle) | $4.34 |
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Utilities and Monthly Bills
The cost of utilities in Phoenix are quite affordable, at an index 101.8. Below, the table shows the average monthly bills for basic utilities, mobile plans, and internet services.
| Utilities | Phoenix, AZ |
|---|---|
| Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment | $262.74 |
| Mobile Phone Monthly Plan with Calls and 10GB+ Data | $85.76 |
| Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) | $88.88 |
Transportation Expenses
Transportation costs in Phoenix, AZ are a bit higher than the rest of the country, at an index of 117.9 which means that this basic expense is 17.9% higher than the national average.
| Transportation | Phoenix, AZ |
|---|---|
| Gasoline (1 gallon) | $4.07 |
| Tire Balancing | $57.11 |
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Healthcare Costs
Healthcare costs are relatively more affordable in Phoenix, at a cost-of-living index of 92.5. The table below shows how much a visit to the doctor would cost on average.
| Healthcare | Phoenix, AZ |
|---|---|
| Optometrist | $117.56 |
| Doctor | $99.00 |
| Dentist | $102.63 |
| Ibuprofen | $12.88 |
Taxes in Phoenix
Arizona requires full-year and part-year residents to pay income tax if your gross income is more than certain thresholds, including any income earned from other states.
You’re considered a full-year resident if your permanent home is in Arizona. This includes residents who have been temporarily away but intend on returning to the state. You’re considered a part-year resident if you moved into Arizona.
The state income tax rates range from 2.59% to 4.50%. For instance, if your average salary in Phoenix is $70,000 a year, you will be taxed around $9,877.
Arizona offers tax deductions and credits to reduce your tax liability. This includes standard and itemized deductions. Your tax is $0 if your income is less than the 2022-2023 standard deduction determined by your filing status and if you’re 65 or older and/or blind.
Conclusion
Phoenix, AZ, is indeed an amazing place to live in. If you are considering relocating to this city, we hope that the information on the cost of living in Phoenix presented in this article has helped you determine if the move will be beneficial for you.
If you are planning to buy your new home in this location, feel free to get in touch with us, and we will be more than happy to help you find the perfect home for you and your family, given your lifestyle, personal preferences, and budget.
Give us a call or text today at (480) 888-5272, or send us an email at cc@ccrealestate.com if you have any questions or if you would like to schedule an appointment.
Frequently Asked Questions
What is the best time to move to Phoenix, Arizona?
The best time of the year to move to Phoenix, AZ, is in spring. During this time, the weather is pleasantly warm, with temperatures ranging from the 70s to the 80s (Fahrenheit).
What is the job market like in Phoenix?
The job market in Greater Phoenix is candidate-driven, with applicants possessing skills in healthcare, technology, and hospitality more likely to find the most opportunities in the current market.
Are there affordable neighborhoods in Phoenix?
Yes, the following are safe, affordable neighborhoods in Phoenix: Ahwatukee Foothills, Deer Valley, North Gateway, North Mountain Village, and South Mountain Village.
Is Phoenix a good place to live in 2023?
Definitely! Aside from beautiful scenery and an abundance of outdoor activities, Phoenix offers thriving industries and an affordable cost of living.
