The cost of living in Phoenix, AZ, is important to consider if you’re thinking about relocating to this incredible desert city. In this guide, we help shed insight into Phoenix living expenses and what you can expect with regard to housing, groceries, transportation, and overall lifestyle costs.

Summary:

• Cost of Living in Phoenix, AZ

• Housing 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, AZ

• Average Salary in Phoenix, AZ

• Phoenix Cost of Living Comparison

• Average Cost of New Construction Homes in Phoenix by Neighborhood

• Cost of Living in Phoenix, Arizona, Conclusion

Cost of Living in Phoenix, AZ

According to RentCafe®, as of March 2024, the Phoenix, Arizona, cost of living is 3% lower than the state average and 2% higher than the national average. That makes Phoenix a relatively affordable place to live.

If you're curious about how much you need to earn to live comfortably in Phoenix, the Living Wage Calculator from MIT® offers additional details. As of February 2024, a single adult with no children should earn a living wage of $24.69 per hour when living in Phoenix, which translates to a required annual income of $43,833 after taxes. For a household of four, two working parents and two children, that living wage increases to $28.66 per hour or a combined annual income of $105,498 after taxes.

Childcare can be another significant expense for residents of Phoenix. As of July 2024, Care.com® reports that the average starting rate for childcare providers in Phoenix is $19.20 per hour. For a standard 40-hour week, that equates to a weekly cost of about $768 and a monthly cost of approximately $2,496 for 130 hours of care.

Now, let’s take an in-depth look at more specific living costs in Phoenix, Arizona. 

Housing Costs in Phoenix, AZ

As with many big cities, housing is one of the biggest factors when assessing the cost to live in Phoenix, Arizona. Phoenix's housing expenses are 24% higher than the national average, per Payscale® in July 2024. 

As of June 2024, Phoenix home prices have increased by 2.5% compared to the previous year, with a median sales price of $451K, according to Redfin®. The average home sells for about 2% below the list price and goes pending in around 45 days. 

For those looking to rent, the average monthly rental cost in Phoenix is about $1,500 for an apartment, according to RentCafe in March 2024. Typical housing costs for a single adult with no children average $17,600 annually, while a household of four with two working adults and two children can expect to spend around $22,600 annually on housing, based on MIT’s February 2024 data.

Other Living Expenses in Phoenix, AZ

In addition to housing, food, and transportation, other living expenses in Phoenix, Arizona, include health care, utilities, internet, and recreational activities. These costs can vary but are worth considering for a more holistic understanding of the average monthly cost of living in Phoenix, AZ. 

Grocery Shopping and Dining Out in Phoenix

Food is essential, and its cost can vary significantly across different areas of the state. In Phoenix, typical food expenses for a single adult amount to $4K annually, while a household of four can expect to spend around $11,800, according to MIT’s February 2024 data.

Everyday grocery items in Phoenix come with their own set of prices. A gallon of milk costs roughly $4.78, a dozen eggs are around $5.25, and a pound of potatoes is approximately $4.60, based on March 2024 data from RentCafe. 

When dining out, Numbeo® finds that a meal at a low-budget restaurant averages $20 as of August 2024. A three-course dinner for two at a slightly more upscale establishment can cost around $80–$90. 

Transportation Options and Fuel Costs in Phoenix

MIT reports that a single adult typically spends $10K annually on transportation, while a household of four, two adults and two children, incurs costs of around $16,800 as of February 2024.

As for Phoenix fuel costs, a gallon of gas in July 2024 runs approximately $3.54, slightly above the national average of $3.502 and the Arizona state average of $3.455, according to AAA®.

In addition to personal vehicle expenses, Phoenix offers public transportation options, such as Valley Metro, which includes bus and light rail services. The fees for Valley Metro range from $1 for a single local ride to monthly passes for $64. 

Healthcare and Insurance Costs in Phoenix

According to the February 2024 data from MIT, the annual medical expenses for a single adult with no children average $2,700, while a household of four can expect to spend around $9K.

Healthcare costs in Phoenix cover a range of services, from routine doctor visits to specialized medical care, and RentCafe’s March 2024 data highlights a few of the city’s typical fees:

• A family doctor visit averages $99.

• A dentist appointment is around $120. 

• An optometry check-up is approximately $107.63.

• An over-the-counter bottle of ibuprofen in Phoenix costs roughly $11.04.

Utilities, Internet, and Phone Expenses in Phoenix

Utility, internet, and phone expenses are essential components of the cost of living for Phoenix, Arizona. According to MIT, in February 2024, annual internet and mobile expenses for a single adult with no children generally average $1,700, while a household of four can expect to spend around $2,300 per year. However, these costs may vary significantly depending on the service provider. 

RentCafe finds that energy costs in Phoenix average $193 per month as of March 2024, reflecting the city's need for air-conditioning during the hot summer months. Additionally, phone services average $186 per month.

These expenses underscore the importance of budgeting for utilities, internet, and phone services to help ensure a comfortable and connected lifestyle in Phoenix. 

Tax Rates in the Phoenix Area

Understanding local tax rates is a crucial aspect of financial planning. Avalara® finds that Phoenix has a minimum combined sales tax rate of 8.6% in 2024, which is composed of the state, county, and city sales tax amounts. In terms of state income taxes, SmartAsset™ states that Arizona has a flat income tax rate of 2.50%. 

For individual residents, annual taxes average $7,522, while a household of four, with two working adults and two children, can expect to pay around $13,712, based on MIT’s February 2024 data.

Recreation Costs in Phoenix, AZ

Additional factors in the Phoenix, Arizona, price of living are recreational costs and personal services. Entertainment expenses and everyday services can add up, so it's helpful to budget accordingly.

RentCafe’s March 2024 findings point to a few examples of these costs. For a movie night out, you can expect to pay around $9.71 for a ticket. If you enjoy staying active, a yoga class typically costs $21.97. Keeping up with the news? A monthly newspaper subscription runs about $9.99.

For personal care services in Phoenix, a haircut averages $18.21, while a visit to a beauty salon is around $55.83. For dry cleaning, you can expect to pay about $17.43 per visit, according to RentCafe.

Whether you're catching the latest blockbuster, staying fit, or treating yourself to some self-care at the spa, understanding these expenses can help ensure you enjoy all Phoenix has to offer.

Average Salary in Phoenix, AZ

As of July 2024, ZipRecruiter® reports that salaries in Phoenix can range from $45,579 to $81,074, with the average annual salary being roughly $64,056 and breaking down to about $30.80 an hour, $1,231 per week, or $5,338 a month. 

For specific roles, the average salary for management positions is approximately $120,180, while jobs in building and grounds cleaning and maintenance average around $35,430, according to MIT. 

Phoenix Cost of Living Comparison

When considering a move, it can help to know how living expenses compare between different metropolitan areas. Here’s a snapshot of how the average cost of living in Phoenix, Arizona, compares with Dallas, Denver, and Las Vegas in terms of overall living costs.

• Phoenix, AZ, vs. Dallas, TX: Phoenix and Dallas offer relatively similar cost structures, though Dallas tends to be slightly more affordable overall. As of July 2024, RentCafe reports the cost of living in Dallas is about 2% higher than the national average, similar to Phoenix. Housing costs in Dallas are generally lower, with the median home price approximately $430K compared to the average sale price of $455K in Phoenix, per Redfin in June 2024. 

• Phoenix, AZ, vs. Denver, CO: Denver, known for its picturesque mountain views, generally has a higher cost of living than Phoenix. RentCafe states that Denver’s cost of living is about 11% higher than the national average, greater than the 2% in Phoenix. Housing in Denver can be expensive, with median home prices around $618K, significantly higher than Phoenix’s $455K average, according to Redfin.
  
  

• Phoenix, AZ, vs. Las Vegas, NV: Las Vegas living is fairly comparable to Phoenix. Per Payscale, the cost of living in Las Vegas is about 1% higher than the national average, making it a slightly less expensive option overall. Per Redfin, housing in Las Vegas is also similar to Phoenix, with median home prices around $450K compared to Phoenix’s average home sales price of $455K.

Average Cost of New Construction Homes in Phoenix by Neighborhood

Let’s take a look at what you can expect to pay for new construction homes in some of the top areas in and around Phoenix.

Peoria

Peoria, AZ, is a suburban city just northwest of Phoenix, perfect for outdoor enthusiasts. With beautiful parks, modern amenities, and a variety of recreational activities, there's always something fun to do. The Peoria Sports Complex, one of Major League Baseball’s spring training centers, adds to the city's lively atmosphere. Plus, with quality schools and diverse housing options, Peoria is a fantastic place to call home.

According to NewHomeSource®, in July 2024, the cost of a new construction home in Peoria ranges from the low $400Ks to the mid $1.1M. Our new construction homes in Peoria, AZ, start in the mid $400Ks. 

Queen Creek

Queen Creek, AZ, is a charming town located southeast of Phoenix, known for its friendly community and scenic beauty. With its mix of rural charm and modern amenities, it's a great place for anyone who enjoys a slower pace of life. Queen Creek offers fantastic outdoor activities, including hiking trails and equestrian centers, and hosts numerous community events throughout the year. With a range of housing options, Queen Creek offers a wonderful setting for a comfortable and enjoyable lifestyle.

As of July 2024, NewHomeSource finds the cost of a new construction home in Queen Creek ranges from the mid $300Ks to the upper $2.6M. Our new construction homes in Queen Creek, AZ, start in the upper $500Ks. 

Laveen

Laveen is situated just southwest of downtown Phoenix. Known for its agricultural roots, Laveen offers a peaceful vibe while still being close to big-city amenities. The area is home to beautiful parks, scenic trails, and an inviting sense of community, helping make Laveen an ideal spot for those looking to enjoy a balanced and fulfilling lifestyle.

According to NewHomeSource, the cost of a new construction home in Laveen ranges from the mid $300Ks to the upper $900Ks as of July 2024. Our new construction homes in Laveen, AZ, start in the upper $300Ks. 

Glendale

Located just northwest of Phoenix is Glendale, AZ. Home to the Arizona Cardinals and the National Hockey League's Arizona Coyotes, Glendale is a hub for sports fans and event-goers. The city also offers charming historic districts, shopping centers, and a variety of dining options. With quality schools and numerous housing options, Glendale provides a lively and welcoming environment for families and individuals alike.

NewHomeSource shares that as of July 2024, the cost of a new construction home in Glendale ranges from the low $400Ks to the upper $700Ks. Our new construction homes in Glendale, AZ, start in the mid $500Ks. 

Goodyear

Goodyear is a rapidly growing city located west of Phoenix, known for its community-oriented vibe and tons of amenities. With beautiful parks, top-notch golf courses, and a variety of recreational activities, Goodyear offers a multifaceted and active lifestyle. The city is home to the Goodyear Ballpark®, where Major League Baseball teams hold their spring training. With diverse housing options and a welcoming atmosphere, Goodyear is a fantastic place to live and thrive.

According to NewHomeSource, in July 2024, the cost of a new construction home in Goodyear ranges from the mid $300Ks to the upper $700Ks. Our new construction homes in Goodyear, AZ, start in the low $400Ks. 

Cost of Living in Phoenix, Arizona, Conclusion

Use this guide to the cost of living in Phoenix, AZ, and see how it stacks up against other cities when considering a move here. Whether you're drawn to the sunny weather or the wonderful communities, understanding these Phoenix living expenses can help you be well prepared and make your transition smoother and more exciting. 

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

Written By: Jordan Thomson, Freelance Writer

Last Updated: 1/19/25