Cost of Living in Phoenix

Arizona · Population: 1,642,323 · Updated 2026

Average
Cost Index
103.3
100 = US avg
Median Income
$81K
Annual household
Median Rent
$1,582/mo
2-bedroom unit
Rent Burden
23%
Income to rent ratio
Cost Category Breakdown

Indexed to national average (100)

Housing93.1
Groceries195.9
Utilities100.0
Transportation156.2
Healthcare100.0
Economic Details
Median Home Value$421K
State Income Tax2.5%
Unemployment Rate3.5%
Est. Net Income$79K/yr
Affordability Score
98
out of 100
Above national average cost
Salary Converter for Phoenix

See what salary you'd need in another city to match your purchasing power in Phoenix.

$75,000

About Phoenix

Phoenix offers a warm climate, affordable housing, and a growing economy. The tech and healthcare sectors are expanding rapidly, making it a popular destination for young professionals seeking a lower cost of living.

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Frequently Asked Questions

Is Phoenix expensive?

Phoenix has a cost of living index of 103.3, where 100 represents the national average. This is close to the national average.

What salary do you need to live comfortably in Phoenix?

Based on a rent-to-income ratio of 30%, you'd need at least $63,280 to afford the median 2-bedroom apartment in Phoenix and maintain basic expenses.

What is the median rent in Phoenix?

The median 2-bedroom rent in Phoenix is $1,582 per month, according to HUD Fair Market Rent data.