Cost of Living in Phoenix, AZ

Population 1,624,832 · Arizona · Data vintage 2023

120

Cost Index
(100 = US avg)

Page updated: April 2026 · Data vintage: 2023 ACS 5-Year

Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Phoenix is among the largest cities in Arizona by population, with the kind of employment diversity and housing variation that comes with a major regional hub.

Cost Overview

Housing 125

Rent 111

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Phoenix

The median home value in Phoenix is $381,900 — 25% above the national median of $305,000. Median rent runs $1,458/month, 11% higher than the national median of $1,314/month. The median household income of $77,041/year is 3% higher than the US median of $74,580. The local unemployment rate is 5.1%, above the national average of 4.8%. Arizona's top state income tax rate is 2.5% and the combined sales tax is 8.4%. Overall, Phoenix has a cost of living index of 120 versus the US average of 100, meaning it is 20% more expensive.

🏠 Housing

Median Home Value

$381,900

25% above avg

Zillow Home Value

$407,665

Zillow ZHVI

Median Rent

$1,458/mo

11% above avg

Zillow Rent

$1,555/mo

Zillow ZORI

Price-to-Rent Ratio

21.8x

Favors renting

Property Tax Rate

0.6%

Effective rate

HUD Fair Market Rents by Bedroom

Studio

$985

1 BR

$1,055

2 BR

$1,373

3 BR

$1,877

4 BR

$2,092

Owner-occupied 57.1%

Renter-occupied 42.9%

💰 Estimated Monthly Budget

Rent median rent

$1,458

Groceries national estimate

$400

Utilities local estimate

$88

Transportation local gas prices

$126

Estimated Total $2,072/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚

Eggs (dozen)

$0.548

🍞

White Bread (lb)

$1.912

🥩

Ground Beef (lb)

$5.61

🚗 Transportation

Avg Commute

27.8 min

3% above avg

Gas Price

$3.145/gal

0% below avg

Work From Home

16.9%

Commute Mode

Drove alone

66.1%

Carpooled

10.9%

Public transit

2.0%

Walked

1.6%

Bicycle

0.4%

Work from home

16.9%

⚡ Utilities

Electricity

$0.176/kWh

0% below avg

📋 Taxes

State Income Tax (flat) 2.5%

Total Sales Tax 8.4%

State rate 5.6%

Avg local rate 2.8%

Property Tax 0.6%

💼 Income & Employment

Median Household Income

$77,041

3% above avg

Per Capita Income

$40,309

Unemployment Rate

5.1%

6% above avg

Poverty Rate

14.3%

Labor Force Participation

68.0%

🎓 Education

Bachelor's degree+ 19.9%

Graduate degree 12.5%

👥 Demographics

Median Age 34.8

Male median age 34.3

Female median age 35.3

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 72 — Moderate

11.2%

Good air days/yr

183

Max AQI recorded

PM2.5 days

193

Ozone days

Frequently Asked Questions

What is the cost of living in Phoenix, AZ?

Phoenix has a cost index of 120 (100 = national average). It is 20% above the national average.

What is average rent in Phoenix, AZ?

The median gross rent in Phoenix is $1,458 per month based on 2023 Census data.

What is the average home price in Phoenix?

The median home value in Phoenix is $381,900 according to Zillow and Census data.

What is the median income in Phoenix?

The median household income in Phoenix is $77,041 per year (2023 ACS 5-year estimates).

What is the sales tax in Phoenix, AZ?

The combined state and local sales tax rate in Phoenix is 8.4%. The Arizona state income tax top rate is 2.5%.

Is Phoenix, AZ affordable?

Phoenix is above average in cost of living, with an index of 120 — about 20% higher than the national average.

Phoenix at a Glance

Population: 1,624,832
Median Income: $77,041
Home Value: $381,900
Median Rent: $1,458/mo
Unemployment: 5.1%
Sales Tax: 8.4%

View all cities in Arizona →

Nearby Cities

Compare Phoenix

🗺️ County data for Arizona

Explore county-level cost of living data

Arizona Rankings

Similar Cost Cities

Cities in other states with comparable housing costs