Cost of Living Breakdown
The cost of living in Phoenix, AZ is 3% higher than the national average. Here's how each category compares:
| Category | Index | vs National Avg |
|---|---|---|
| Overall | 103 | +3% |
| Housing | 105 | +5% |
| Groceries | 100 | Average |
| Utilities | 108 | +8% |
| Transportation | 101 | +1% |
| Healthcare | 97 | -3% |
Housing Costs in Phoenix
Housing is typically the largest expense. In Phoenix, the housing index is 105 (national average = 100).
- Median home price: $420,000
- Median rent (1 bedroom): $1,350/month
- Median rent (2 bedrooms): $1,650/month
- Annual rent (1BR): $16,200/year
Housing costs in Phoenix are roughly in line with national averages.
How Much Do You Need to Earn in Phoenix?
To maintain the equivalent of a $50,000 salary at the national average cost of living, you would need to earn approximately $51,500 in Phoenix. The median household income of $62,055 translates to a monthly budget of approximately $5,171.
Groceries & Everyday Expenses
The grocery index in Phoenix is 100. Grocery prices are close to the national average.
Transportation & Utilities
Transportation costs sit at an index of 101, while utilities come in at 108. Transportation costs are reasonable compared to other major cities.
Healthcare
Healthcare costs in Phoenix are indexed at 97. Healthcare costs are close to or below the national average.
Compare to Arizona
See statewide salary and tax data on our average salary in Arizona page. Also see income data for this city on our average salary in Phoenix page.
Financial Tools
Use our free calculators to plan your finances in Phoenix:
- Mortgage Calculator — estimate your monthly home payment
- Home Affordability Calculator — see how much house you can afford
- Salary Calculator — convert hourly to annual pay
- Savings Goal Calculator — plan for your move or down payment