Phoenix Cost of Living: Complete Guide For Estimated Monthly Cost
If you are considering moving to Phoenix, Arizona, then you’re not the only one. Almost 100,000 people moved to Phoenix in 2022. If moving trends are any indicator, migrations to Phoenix won’t be slowing down for a while. What makes Phoenix a popular destination for all Americans is the cost of living. So, if you are looking to avoid the high prices of everything recently, moving to Phoenix is an option to consider. However, Phoenix cost of living has changed due to the influx of people moving in. That is why, today, with our expert team at Best Long Distance Movers, we will look at the most important cost items if you would move to Phoenix, Arizona. So let’s dive right in.
Before looking at the cost of living, what is it like living in Phoenix, Arizona?
According to the US Census Bureau, Phoenix, Arizona was the fastest-growing city in the US for 4 years in a row. Before you start looking for long distance moving companies Phoenix offers, just because you know that Phoenix’s cost of living is cheap, you should bear in mind that your budget isn’t the only thing that should dictate where you live.
You should also consider the overall environment, amenities, schools, and the job market too. So, what is it like living in the Valley of The Sun, the capital of Arizona? First off, if you are a person thriving in lush green parks, you may feel out of place in this desert city. Even though it is a desert, there’s still great biodiversity to be found. Arizona has deserts, canyonlands, lava fields and volcanic plateaus, and forest mountains. All of that with the combined 313 days of sun on average makes Phoenix a unique place to call home.
What is also a major draw side of living in Phoenix, as the residents of this city can attest to is that it is incredibly fun. There are so many ways to entertain yourself in your free time, after hiring Scottsdale long distance movers. The restaurant scene, as in any big scene is a blend of cultures and cuisine, from street tacos to world-class restaurants. However, what makes Phoenix’s culinary scene one-of-a-kind is eating outdoors, overlooking the most amazing sunsets. After a bite to eat, you can enjoy the many arts and culture stops in Phoenix Arizona such as:
- world-renowned Heard Museum,
- Orpheum Theatre,
- one-of-a-kind Musical Instrument Museum,
- Symphony Hall,
- Comerica Theatre,
- Phoenix Art Museum,
- Desert Botanical Garden
Phoenix cost of living – housing costs
Housing is usually the most important cost of living. On average, Americans spend up to 50% of their monthly salary on rent and mortgage. So, of course, housing is the most important expense in your monthly budget. Phoenix’s housing market is quite volatile, so let’s get you acquainted with it before you call best long distance movers in Arizona. What that means is, that due to changes in demographics and other external factors, the housing market in Phoenix is unique and can change fairly quickly.
In the past year, Phoenix saw a reduction in year-over-year home appreciation rates. On average, home value decreased in Phoenix in 2022 by almost 2%. The median sale price of a single-family home in Arizona was $410,000 in 2022. In the past year, the number of total homes sold also decreased from 2 428 to 1 245 sold in 2022. With an increase of days a home spends on the market to 60, it’s clear that the Phoenix housing market is experiencing a downturn.
Average rents in Phoenix
On the other hand, not everyone is a homeowner. After all, over 40% of households in Phoenix are renter-occupied homes. On average, the rental costs in Phoenix, Arizona are $1,912 in 2023, for all types of properties. There was a slight decrease in average rent in Arizona in the past year. However, they are almost insignificant and depend on where you are renting and what kind of property. For example, the past year saw an increase in average rent of over $100 for one-bedroom apartments. Today, the average rent for a one-bedroom in Phoenix is around $1,400, and $1,700 for a two-bedroom. The most expensive neighborhood in Phoenix is of course Downtown with a median rent of $1,885, while the most affordable is Garfield with an average of $ 1,390.
Getting around Phoenix – transportation costs
The city of Pheonix is a city that has been growing rapidly, and you can see that in urban city plans. It’s almost impossible to get around without a car. However, in the past year, the Lightrail system that is beginning to change. If you own a car, you will without a doubt be dependent on it to get around. However, if you are moving from Tucson with the help of long distance moving companies Tucson AZ, you are probably used to the city design. Still, there are numerous ways to get around Phoenix.
The best transportation system to get around is Valley Metro Rail, which connects Mesa, Pheonix, and Tempe and it is 28 miles long. One-way tickets for the local bus and metro systems are $2. However, you can buy 7-day, 15-day, and 31-day passes from $20 to $64. They also offer reduced fares at half the prices for children, teens, senior citizens, disabled, and Medicare recipients. The bus routes are fairly on time, and on most lines, there is a bus every 10 to 30 minutes.
Let’s talk about taxes
Nobody likes paying taxes, but you can’t avoid it either. Taxes are one of the best ways to find out if you can afford Phoenix cost of living. Of course, you should look at taxes if you are serious about hiring long distance moving Flagstaff, to move to Phoenix, as they don’t tell you a lot about the cost of living without a taxable income. On the federal level, you pay taxes on your income at an average rate of 8.26%, while the state tax is 1.63%. Arizona has a top individual income tax rate of 4.5%. In addition to that the total state and the local sales tax rate is up to 9.5%. The sales tax, however, is the highest in Phoenix. The total combined local, county, and state taxes in Phoenix is 8.6%
Groceries and utilities
It is no secret that groceries and utilities vary not only across the country, but states and even cities within said states. So if Phoenix is really affordable, groceries and utilities should reflect that. Groceries make up more than a quarter of total monthly expenses in Phoenix. Utilities make up around 6% of total expenses. The percentage of expenses was based not on the actual cost but on the proportion of total monthly expenses. Since one person’s living costs in Arizona are approximately $1,064 without rent, that means that the average monthly groceries bill for one person will be around $800, and the utilities around $200.
Still, the Arizona Census Bureau of Economic Analysis puts the minimum grocery monthly bills for one person as low as $300. The utilities cover water, electricity, heating, and garbage bills in Arizona. Groceries and utilities do vary from person to person based on their living preferences. However, we should say that the average utility bill is higher than the national average by 15%. However, groceries are less expensive in Phoenix than in other cities like Tucson, Mesa, Chandler, and Scottsdale.
Phoenix’s cost of living compared to other cities in Arizona
Phoenix is the capital and the biggest city in Arizona. However, the average cost of living in Phoenix is lower than the state average. When comparing different cities and their cost of living, people usually compare Tucson, Phoenix, and Mesa, which are the three largest cities in the Grand Canyon State. So how do these three compare? First off, Phoenix is by far the most populated city, with over 1.5 million people. Tucson and Mesa’s combined population doesn’t even come close, with both cities having around half a million residents.
With all that being said, it is logical to presume that Phoenix would be more expensive than Mesa and Tucson. And if that’s your presumption, you would be correct. On average, rents are 47% higher in Phoenix than in Tucson and 8% higher than in Mesa. When it comes to groceries the situation is like this – Mesa is the most expensive, followed by Phoenix, making Tucson the most affordable city in Arizona for groceries. This is something to keep in mind before contacting Mesa long distance movers.
Is Phoenix the most expensive city and why are people moving to Arizona?
It may be easy to think that Phoenix is the most expensive city with the highest cost of living. After all, it is the capital. However, average purchasing power is highest in Phoenix. What that means is that even if the cost of living and prices are higher in the capital of the Grand Canyon State, the salaries are higher as well. That way, even if living is more expensive, people have more disposable income. Some of the most expensive cities and neighborhoods in Arizona, besides Pheonix, are Scottsdale, Paradise Valley, Cave Creek, and Queen Creek. However, if you are looking for the most affordable living in Arizona, you can find that in Winslow, Avondale, and even Tucson.
The cost of living may have been the number one reason to move to the city of Phoenix. However, due to the rising cost of living, inflation, and increase in mortgage rates, Arizona is no longer the second cheapest state to live in. Now, Mississippi is the state with the lowest cost of living. So, why are people still moving to Arizona in droves? Well to understand we have to look at which states are sending the most residents to Arizona. The state that has the most move-outs to Arizona is California. The main reason why Californians are moving to Arizona is the lower cost of living. In fact, the cost of living in Arizona is 16% lower in Arizona than in California. Not only that, but these two states have similar economies and climates.
Cost of moving to Phonix, Arizona and tips for budgeting
Deciding to move can be an exciting adventure. With the help of best long distance movers California, your move to Arizona can be both comfortable and affordable. However, moving, especially if you are moving long distances is not exactly cheap. Of course, if you want quality movers, it pays off to pay a little extra. If budgeting is something you don’t excel at, we have some cost-saving tips. First, when trying to find movers compare both quotes and reviews. That way you can find both affordable and quality movers. Secondly, try traveling lightly. That means purging your entire home of things you no longer want or need by selling or donating them. That way you will have less stuff to move which means you won’t need as much storage during and after relocation.
When it comes to saving monthly costs, it does require a little extra effort. However, because Pheonix’s cost of living is somewhat affordable there won’t be much you have to do. Still, if you want to save on monthly costs you should start by writing a monthly budget and keeping track of your monthly expenses. That is an easy way to get an overview of your finances. To cut your spending on groceries, you can start buying food in bulk and meal prep at home and avoid eating out as much. Of course, don’t forget to save on your electricity bills by shutting down the lights when you don’t need them and instead rely on natural sunlight, if possible.
And that’s it. We have presented the average Phoenix cost of living and monthly expenses. Of course, it is hard to give an exact estimate of how much each person’s monthly costs will be. But where and how you live will determine if moving to Phoenix is a smart choice for you financially. We are sure that with our help, no matter what you decide, finding affordable and quality movers won’t be a problem.