What’s the Cost of Living in Phoenix, AZ?

Before you start dreaming about backyard BBQs or poolside lounging against the city’s stunning desert background, let’s talk about the cost of living in Phoenix, AZ, if you’re considering calling this sunny desert city home. Phoenix offers access to major employers, great neighborhoods, and enough outdoor adventures to keep your weekends action-packed, but first, having an understanding of some of the essential factors behind the living cost in Phoenix before moving here is helpful. Let’s dive in! 

Summary:

• Cost of Living in Phoenix, AZ

• Comparing Average Home Prices and Rent Costs in Phoenix, AZ

• Other Living Expenses in Phoenix, AZ

  • Grocery Shopping and Dining Out in Phoenix

  • Transportation Options and Fuel Costs in Phoenix

  • Healthcare and Insurance Costs in Phoenix

  • Utilities, Internet, and Phone Expenses in Phoenix

  • Tax Rates in the Phoenix Area

  • Recreation Costs in Phoenix, Arizona

• Average Salary in Phoenix, AZ

• Average Cost to Build a New Home in Phoenix by Neighborhood

• Conclusion

Cost of Living in Phoenix, AZ

Phoenix, Arizona, living expenses are somewhat comparable to other big cities. As of September 2024, the cost to live in Phoenix is about 3% lower than the state average and 3% higher than the national average, per RentCafe®. Not too shabby for a place that offers sunshine 300 days a year!

If you’re a single adult, you’ll likely need an annual income of about $43,833 after taxes to live comfortably in Phoenix, according to the MIT® Living Wage Calculator. For a household of four, two adults with two children, that number jumps to $105,498. Now, let’s break down what some of those expenses are that your wages need to cover.

Comparing Average Home Prices and Rent Costs in Phoenix, AZ

One of the biggest factors in the average cost of living in Phoenix, Arizona, is housing. Phoenix housing costs are 17% higher than the national average, per RentCafe, but don’t panic! There’s a wide range of options, whether you’re looking to rent a cozy one-bedroom or buy your first home.

• Buying a home: Redfin® reports the median price sits around $450K as of Jan 2025, but new construction communities in Phoenix from Centex® may offer more bang for your buck, with energy-efficient layouts and various home designs to choose from.

• Renting: Expect to pay about $1,578 a month for a two-bedroom apartment, per Apartments.com® as of February 2025, with a one-bedroom apartment averaging $1,337 monthly.

Here’s a first-time homebuyer tip: When you’re figuring out your housing budget, don’t forget to factor in things like HOA fees or renter’s insurance. Those extra costs can sneak up on you and add up fast.

Other Living Expenses in Phoenix, AZ

In addition to housing costs, you also need to budget for groceries, transportation, and the occasional night out. We break down those living expenses in Phoenix, Arizona, next. 

Grocery Shopping and Dining Out in Phoenix

Factoring in grocery costs is a necessity in understanding the average cost of living in Phoenix, AZ. Food costs in Phoenix for one person tend to run about $335 a month, according to MIT, while a household of two adults and two children spends closer to $986 monthly. Every day staples like a gallon of milk cost around $4.79, and eggs are about $4.60 per dozen, according to RentCafe’s 2024 data.

When you’re not in the mood to cook, Phoenix has tons of options. Based on February 2025 data from Numbeo®, you can grab some inexpensive tacos at a local spot for around $20 or splurge on date night with about $80 for a three-course dinner for two. And here’s a bonus: Many restaurants here have killer patios, perfect for enjoying that unique Arizona skyline and all that sunshine.

Transportation Options and Fuel Costs in Phoenix

Getting around Phoenix is pretty simple, but most people rely on cars. As of January 2025, gas prices average about $3.06 per gallon, reports AAA®, with annual transportation costs running roughly $10K for single adults and $16.8K for a household of four, per MIT as of February 2024.

Prefer public transit? Valley Metro® offers buses and light rail services starting at $1 per ride. It’s a budget-friendly option if you’re commuting downtown or heading to a concert at Footprint Center.

Healthcare and Insurance Costs in Phoenix

Medical costs in Phoenix can vary significantly, but on average, these expenses are 7% lower than the national average per RentCafe as of September 2024, which also reports a visit to the doctor averages $99, and dental checkups run about $120. Another item you may need to budget for in the average monthly cost of living in Phoenix could be health insurance. Per ValuePenguin®, as of January 2025, the lowest cost medical insurance premiums range from $322–$480, though the monthly average can be about $529. Overall, for a single adult, MIT finds medical costs total about $2,600 annually, while households of two adults and two children spend around $9K.

Utilities, Internet, and Phone Expenses in Phoenix

Summers are hot here in Phoenix! As a result, when it comes to the cost of living in Arizona, Phoenix energy bills average $198 monthly (RentCafe, September 2024), thanks to keeping the air conditioning running. Monthly internet fees tend to start at around $50, according to Allconnect® in December 2024, and RentCafe finds phone bills are roughly $186 per month. Keep in mind that internet and phone expenses depend on the plan and provider you choose.

Tax Rates in the Phoenix Area

Arizona’s flat income tax rate of 2.5% is one of the lowest in the U.S. as of December 2024, per Avalara®. According to MIT, as of February 2024, annual taxes for a single adult average $7.5K, while a household of two adults and two children pay around $13.7K. Avalara also finds the Arizona state sales tax is 5.6%, which when combined with county and Phoenix city sales tax rates, can average 8.6%. 

Recreation Costs in Phoenix, Arizona

Living in Phoenix isn’t just about work and bills—there’s plenty of fun to be had. RentCafe finds a yoga class costs about $22, while movie tickets average $9.75. Love the outdoors? Hiking in nearby spots like Camelback Mountain is free and gives you unbeatable views of the city.

Average Salary in Phoenix, AZ

As with any big city, managing the cost to live in Phoenix, Arizona, depends on your earnings. While salaries in Phoenix vary widely depending on the industry, the average salary is about $64K annually, or $30.80 an hour, according to ZipRecruiter® as of January 2025. Per MIT, management positions in Phoenix could earn upwards of $120K annually, while roles in maintenance or cleaning average closer to $35K. 

Average Cost to Build a New Home in Phoenix by Neighborhood

Hoping to build your dream home in Phoenix instead of buying an existing one? Here’s what you can expect to pay for new construction homes in some of the most popular neighborhoods around the city.

Buckeye

Buckeye is one of the fastest-growing cities in the U.S., offering an affordable suburban lifestyle just 30 minutes west of downtown Phoenix. It’s a hot spot for outdoor lovers, with Skyline Regional Park offering miles of hiking and biking trails. The cost to build a new home in Buckeye, according to NewHomeSource® as of January 2025, ranges from the low $300Ks to the mid $700Ks. Homes in the Centex® new construction communities of Copper Falls and Village at Sundance start in the mid $300Ks.

Queen Creek

In Queen Creek, you can find both small-town charm and modern conveniences, making it a favorite for households of any size. Known for its equestrian culture and scenic hiking trails, the town also boasts great dining and shopping at spots like Queen Creek Marketplace. As of January 2025, NewHomeSource finds the cost of a new construction home in Queen Creek ranges from the upper $300Ks to the upper $1.5M. 

Maricopa

Located about 30 miles south of Phoenix, Maricopa offers some of the most affordable housing options in the area. This growing community features parks, local shops, and easy access to downtown Phoenix via major highways. It’s a great spot for buyers looking for a quieter, more laid-back lifestyle. The cost to build a new home in Maricopa, according to NewHomeSource, ranges from the mid $200Ks to the mid $600Ks. Our Maricopa new construction homes at El Rancho Santa Rosa start in the low $300Ks,

Glendale

Sports fans, this neighborhood’s for you! Glendale is home to State Farm® Stadium and the Desert Diamond Arena, hosting NFL® games, concerts, and more. Beyond the sports action, Glendale boasts charming historic districts and contemporary shopping options at the Westgate Entertainment District. NewHomeSource shares that, as of January 2025, the cost of a new construction home in Glendale ranges from the mid $300Ks to the upper $900Ks. 

Goodyear

Goodyear is a city west of Phoenix, known for its friendly neighborhoods and tons of recreation options. From golf courses to the Goodyear® Ballpark, where MLB® teams hold spring training, there’s always something to do. According to NewHomeSource, in January 2025, the cost of a new construction home in Goodyear ranges from the mid $300Ks to the low $1M. 

Conclusion

The Phoenix, Arizona, price of living offers affordability, opportunity, and a laid-back lifestyle—making this city an ideal choice for homebuyers scoping out the real estate market. Start your next chapter in this sun-soaked city and discover all the ways Phoenix can help you thrive! 

Explore new homes in Phoenix, AZ, today, or browse more Centex blogs. 

Written By: Jordan Thomson, Freelance Writer

Last Updated: 4/28/25