Phoenix, Arizona Cost of Living 2021 | Affiliated Mortgage


The cost of living in Phoenix, Arizona, is 20.4% higher than the National Average.

The cost of living in any place can vary based on a multitude of factors such as median household income, transportation, and the real estate market of that area. Do you think the cost of living in Phoenix, AZ shot up in 2021? The prices in Phoenix are up 2.2% from a year ago. The most significant increases are seen in Housing, Food, and Healthcare.

What is the cost of living in Phoenix, Arizona?

Cost of Living in Phoenix, Arizona by Expense Category


Housing, Utilities, and Transportation

Phoenix’s housing expenses are about 5% lesser than the national average, and the utility prices are approximately 4% lower than the national average. Transportation expenses like bus and gas prices are around 8% lower than the national average.

  • Median Home Price = $325,684

  • Median Rent = $1,228 / month

  • Energy Bill = $161.12 / month

  • Phone Bill = $171.75 / month

  • Gas = $2.39 / gallon


Healthcare facilities in Phoenix are about 2% lower than the national average.

  • Doctor’s Visit = $108.16

  • Dentist Visit = $92.92

  • Optometrist Visit = $101.35

  • RX Drug = $430.86

  • Veterinary Visit = $48.23

Grocery and Food

Phoenix, AZ, has grocery prices that are about 3% lower than the national average.

  • Loaf Of Bread = $3.24

  • Gallon Of Milk = $1.89

  • Carton Of Eggs = $1.76

  • Bunch Of Bananas = $3.27

  • Hamburger = $4.13


Is Living In Phoenix Expensive Than Other Major Cities?

City, State                                     Compared to National Average

San Francisco, CA + 62.5%
Washington, DC + 59.6%
Miami, FL + 14.7%
Chicago, IL + 16.7%
Boston, MA + 39.5%
New York, NY + 83.0%
Dallas, TX + 1.7%

The Cost of Living Phoenix, AZ by Expense Category

City, State Compared to National Average
Energy -4.3%
Food -40.7%
Healthcare -63.0%
Housing -3.0%
Transportation -34.9%

Cost of Living Comparison with Phoenix, AZ And Other Major Cities

Move From  Move To             Cost Of Living Comparison

San Francisco, CA Phoenix, AZ -42.1%
Washington, DC Phoenix, AZ -39.2%
Miami, FL Phoenix, AZ + 5.7%
Chicago, IL Phoenix, AZ + 3.7%
Boston, MA Phoenix, AZ  -19.2%
New York, NY Phoenix, AZ -62.7%
Dallas, TX Phoenix, AZ + 18.7%

Source: or

Frequently Asked Questions (FAQs)- Cost of Living in Phoenix, AZ

What is a Cost of Living Index, and how is it used?

In the simplest terms, a Cost of Living index is the estimated amount that represents the cost of the necessities required for an individual to live. A cost of living or COL estimate may typically include estimates for housing, food, energy, medical care, transportation, taxes, and other necessities. A COL index may be used to measure what the cost difference would be for a person living in a specific location compared to another site. This cost of living comparison helps individuals make decisions about where they would like to live and what they can afford based on the expenses in that location. A cost of living comparison can guide how an increase or decrease in these basic living expenses impacts necessary spending for an individual or a family. 

What factors are included in estimating your cost of living?

The cost of living is based on data related to five general categories: housing, food, healthcare, transportation, and energy. These are the universally recognized core components of any cost of living estimate and represent those expenses that apply to everyone. There may be other factors that could contribute to your particular cost of living situation, and not everyone has the same spending habits. For example, education and childcare costs might not apply to everyone, but for those who have those expenses, they could be significant. They should be considered when you evaluate your cost of living comparison. 

Is Phoenix, Arizona, very congested with traffic?

Overall, the time and ease of your driving times will impact your cost of living, since driving in heavy and slow-moving traffic uses a lot of gas. Phoenix, Arizona, has ease of driving ranking of 44 and is considered pretty good overall for commuters. 

What is the average commute time in Phoenix, Arizona?

In Phoenix, AZ, the average commute time is about 30.51 minutes. This can vary depending on the time of day, day of the week, the weather and the road conditions. If the weather is terrible, the commute time can double! You should factor this commuting time into your overall cost of living since your time has value. 

The cost of living in Phoenix, Arizona, is essential, but what about the weather?

The weather in Phoenix is ideal. Based on data collected by National Climatic Data Center, Phoenix is considered to have one of the most favorable climates in the country based on comfort and number of days with clear skies. You will enjoy living in Phoenix, Arizona.

How do rental housing prices in Phoenix, Arizona, impact the overall cost of living?

In Phoenix, AZ, the median rent for a one-bedroom apartment is around $852, and for a two-bedroom apartment is about $1061. In general, in the past year, rental costs in Phoenix have increased by approximately 3.6%. Since rental expense makes up a significant part of the cost of living, you should consider this expense and how it might change when you calculate your cost of living in a new city. 

What can you do for free in Phoenix, AZ?

Look for areas of Phoenix, Arizona, where there is a large student population. In those areas, you will be sure to find lots of free or cheap events to go to and plenty of affordable places to eat. Familiarize yourself with the places where students hang out, and take advantage of discounted or bargain prices, you are sure to be able to keep your cost of living reasonable. Look at the website for Phoenix, AZ to find recommendations for activities that are available and unique to the area.

Contact us at (605) 718-9820 or schedule a call and let our mortgage experts help you with your home loan.