It Costs You Over $41K a Year To Live in Phoenix — Here’s Why

If you live in Phoenix, your average cost of living will come out just a bit above the national average. Phoenix is known for its year-round sunshine and warm temperatures, but it’s much cheaper than other sunny towns in neighboring states, such as Los Angeles and San Francisco .

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How Much Does It Cost To Live in Phoenix?

The average annual expenditures for a resident of Phoenix come out to $41,287, as found in a May GOBankingRates study . This means you need to make at least $3,441 per month to cover your expenses without going into debt. The overall cost of living in Phoenix is only 4% higher than the national average, but rent costs are 24% higher than the national average.

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Housing Costs

The average cost of renting a home in Phoenix can be quite high compared to other parts of the country. As of the latest PayScale data , the median rent hovers around $1,700 per month. A one-bedroom apartment may go for a bit lower, at around $1,316, while homes with three bedrooms or more can be upward of $2,000 per month.

Buying a home isn’t cheaper, either. As is the case in most of the U.S., the median home price in Phoenix has been rising, with the current median home sale price standing at about $450,000, according to Redfin . The housing market in Phoenix is relatively competitive, but demand seems to be on a slight decline, so prices may reflect that in the future.

Healthcare Costs

As is the case in many places in the U.S., healthcare in Phoenix can be costly, especially if you’re not covered by insurance through employment. However, annual healthcare costs in Phoenix are actually 7% below the national average, according to RentCafe . The average Phoenix resident spends around $99 per doctor visit and $120 per dentist appointment.

Grocery and Food Expenses

The cost of groceries in Phoenix is roughly on par with the national average, but certain items can be pricier than others. For example, while a gallon of milk will be much cheaper in Phoenix than in New York, bottled water may actually cost more in Phoenix. You can expect the monthly grocery bill for one person to be about $570, according to LivingCost.org .

Dining out in Phoenix offers a range of options, but the prices can add up. A meal at an inexpensive restaurant costs around $20 per person, while a three-course meal at a mid-range restaurant can cost around $80 for two people, according to Numbeo .

Transportation Costs

While Phoenix has a developing public transportation system, including buses and a light rail, many residents rely on personal vehicles to get around the vast city. A single-day ticket for the light rail and buses in Phoenix costs $4, while a 31-day ticket will cost $64.

Current gas prices in Phoenix are slightly above the national average, per AAA . While the current national average price of gas is $3.22 per gallon as of Sept. 27, the average price in Phoenix is $3.34 per gallon, or 3.73% more.

Utilities

The desert climate might mean higher electricity and water costs if your air conditioning and water use are higher than they would be in another city due to the heat. However, electricity rates in Phoenix are actually 12% lower than the national rate, according to EnergySage . Water bills are also lower than the national average, by almost 40%.

Average utility bills — electricity, cooling, water and garbage — for a 915-square-foot apartment will add up to about $247 per month, according to Numbeo. Internet costs in Phoenix come out to about $74 per month for a connection of 60 megabits per second or more.

What Is the Median Income in Phoenix?

According to the U.S. Census , the median household income in Phoenix was $75,969, while the national median household income was $74,580 in 2022.

Is Phoenix a Good Place To Live?

While certain expenses, like housing, can be high, overall, the cost of living in Phoenix is generally more affordable compared to other large metro areas like Los Angeles or New York.

Whether Phoenix is a good place for you to live depends on your personal preferences, lifestyle and priorities. Phoenix is known for its warm, sunny weather, with more than 300 days of sunshine per year. This makes it a great location for outdoor enthusiasts who enjoy hiking, biking and golfing year-round. Phoenix is also close to several natural attractions, including the Grand Canyon, Sedona and numerous state parks, offering beautiful landscapes and outdoor activities.

This article originally appeared on GOBankingRates.com : It Costs You Over $41K a Year To Live in Phoenix — Here’s Why