Cost of Living in Phoenix, AZ

With a cost of living index of 112, Phoenix, AZ is somewhat more expensive than average. Living here is 12% more expensive than the national average and 23% above the Arizona state average of 89. As a major city with a population of 1,624,832, Phoenix offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Phoenix's cost of living. The median monthly rent is $1,458 (11% above the US median of $1,319), and the median home value sits at $381,900 (25% above the national median of $304,900). At current prices, the median home costs roughly 5x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Phoenix is $77,041, which is 3% higher than the national median of $75,149. Residents spend roughly 23% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Everyday prices in the Phoenix-Mesa-Chandler, 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.