Cost of Living in Cottonwood, AZ

With a cost of living index of 90, Cottonwood, AZ is a very affordable place to live. Living here is 10% cheaper than the national average and in line with the Arizona state average. Cottonwood is a smaller community of 12,547 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Cottonwood's cost of living. The median monthly rent is $1,080 (18% below the US median of $1,319), and the median home value sits at $286,000 (6% below the national median of $304,900). At current prices, the median home costs roughly 6.1x the median household income — a challenging ratio that puts homeownership out of reach for many residents.

The median household income in Cottonwood is $47,162, which is 37% lower than the national median of $75,149. Residents spend roughly 27% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Cottonwood. The area sees an average annual temperature of 56.7°F, with summers averaging 74°F and winters around 40°F. Annual rainfall totals 12.9 inches spread over roughly 61 days.

Everyday prices in the Prescott Valley-Prescott, AZ (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.