From the Grand Canyon to the vibrant city life of Phoenix, Arizona has long been a popular destination for those seeking sunshine and stunning landscapes. But with its growing popularity, the cost of living in Arizona has crept up in major metro areas over the past few years. While apartments in Scottsdale or homes in Flagstaff may require a little more budgeting, Arizona remains relatively affordable compared to the rest of the nation. Whether you’re considering a move to Arizona for the job market, the weather, or just the desert charm, it’s still possible to find a good balance between lifestyle and cost here in the Grand Canyon State.
Housing costs: Median home prices and average rent in Arizona
Housing is one of the most important factors to consider when evaluating the cost of living in Arizona. With the average monthly rent around $1,500, Arizona remains a bit more affordable than the national average of $1,645. That said, where you choose to live can make a big difference. While cities like Scottsdale or Phoenix may come with higher rent prices due to their amenities, job opportunities, and entertainment options, there are still plenty of affordable areas across the state. From charming desert suburbs to smaller cities, Arizona offers a variety of budget-friendly housing options without sacrificing comfort or convenience.
AZ housing costs: Average rents and median home sale prices
| City in Arizona | 1 Bed Avg. Rent | 2 Bed Avg. Rent | Median Home Sale Price |
| National Average | $1,495 | $1,725 | $439,000 |
| Buckeye | $1,745 | $1,945 | $407,000 |
| Casa Grande | $1,160 | $1,380 | $324,000 |
| Cave Creek | $1,200 | $1,620 | $877,500 |
| Chandler | $1,605 | $2,045 | $530,000 |
| Flagstaff | $1,745 | $2,000 | $700,000 |
| Glendale | $1,250 | $1,520 | $405,000 |
| Gilbert | $1,630 | $1,900 | $565,000 |
| Lake Havasu City | $1,235 | $1,350 | $485,000 |
| Marana | $1,465 | $1,545 | $410,000 |
| Mesa | $1,400 | $1,630 | $458,500 |
| Phoenix | $1,384 | $1,592 | $450,000 |
| Prescott | $1,390 | $1,850 | $455,000 |
| San Tan Valley | $1,885 | $2,275 | $411,000 |
| Scottsdale | $1,935 | $2,370 | $825,000 |
| Surprise | $1,535 | $1,800 | $434,000 |
| Tempe | $1,450 | $1,700 | $450,000 |
| Tucson | $1,055 | $1,330 | $323,000 |
| Queen Creek | $1,645 | $1,930 | $620,000 |
| Yuma | $1,010 | $1,270 | $338,450 |
Housing costs in popular Arizona cities
Flagstaff
Flagstaff, known for its scenic beauty and outdoor lifestyle, comes with a higher price tag than many other parts of Arizona. The average rent for a one-bedroom apartment is about $1,745, and a two-bedroom averages $2,002, both of which are well above the state’s average rent of $1,500. This is likely due to Flagstaff’s desirable location near national parks, its cooler climate, and the proximity to Northern Arizona University. If you’re looking to buy a home in Flagstaff, the median sale price is a hefty $700,000, reflecting the premium people are willing to pay for living in this mountain town.
Phoenix
Surprisingly, Phoenix offers a more affordable housing market when considering the overall cost of living in Arizona. The average rent in Arizona is around $1,500, but in Phoenix, you’ll find one-bedroom apartments averaging $1,384 and two-bedrooms at $1,592—both below the national average. While home prices in Phoenix have been on the rise, with the median home sale price now at $450,000 (up 2.3% year-over-year), the city still provides a relatively affordable option for both renters and homebuyers. From modern condos downtown to spacious suburban single-family homes, Phoenix’s diverse housing options cater to various lifestyles, making it a desirable destination for those seeking sunny skies and a lively urban scene.
Read more: Should I Move to Phoenix, AZ? | 15 Popular Phoenix Neighborhoods | Renting vs. Buying in Phoenix: Which is Right for You?
Scottsdale
Scottsdale is renowned for its upscale living and vibrant atmosphere, and the rent and home prices here clearly reflect that. With an average rent of $1,935 for a one-bedroom and $2,370 for a two-bedroom, this city is synonymous with high-end living. Residents enjoy spacious apartments featuring resort-style amenities, such as sparkling pools, state-of-the-art fitness centers, and beautifully designed communal spaces. The allure of Scottsdale extends beyond its stunning properties; the vibrant dining scene and various outdoor activities draw in those looking for a dynamic lifestyle. While the median home sale price is around $825,000, the unique combination of luxury, convenience, and the vibrant community make Scottsdale a coveted destination for both renters and homebuyers in Arizona.
Tucson
Tucson may be known as a college town, but it’s far more than that. While the University of Arizona gives the city a youthful energy, Tucson also boasts a thriving arts scene, beautiful desert landscapes, and a laid-back lifestyle, making it a top choice for both renters and homebuyers looking for a mix of affordability and culture. With one-bedroom apartments averaging $1,055 and two bedrooms at $1,330, apartments in Tucson typically cost less than the average rent in Arizona, which sits around $1,500. And although the price of homes in Tucson is up 3.9% year-over-year, the median home sale price of $323,000 remains lower than the national average of $439,000. Even with rising prices, homeownership in Tucson is still more affordable and attainable compared to many other parts of the country.
Yuma
Located near the California border and the banks of the Colorado River, Yuma offers a sunny, laid-back lifestyle at a lower cost. With one-bedroom apartments averaging $1,010 and two-bedroom apartments at $1,270, Yuma remains one of the most affordable cities when considering the cost of living in Arizona. Its close-knit community and relaxed pace make it an attractive option for renters looking to save while still enjoying the warmth and charm of Arizona living.
The cost of utilities in Arizona varies
When considering the cost of living in Arizona, utilities are an important factor to budget for. With the state’s hot desert climate, air conditioning is a necessity for much of the year, often making electricity one of the higher utility costs. However, Arizona’s dry heat helps lower other expenses, like water usage and heating costs during the mild winters. Depending on your location and the size of your home, monthly utility bills can vary, but they generally align with the national average. Additionally, many homeowners invest in solar panels to offset electricity costs, which can be a savvy move in this sun-soaked state.
Keep in mind that factors like the efficiency of your home and personal energy habits can also impact your monthly expenses. Let’s see how the average monthly energy bill in a few popular Arizona cities compares to the national average energy costs.
| Monthly Energy Bill | Comparison to National Avg. | |
| National Average | $200.07 | |
| Bullhead City | $166.07 | -12% less |
| Flagstaff | $162.08 | -13% less |
| Lake Havasu City | $184.68 | -6% less |
| Phoenix | $210.35 | +2% more |
| Prescott | $163.74 | -12% less |
| Sierra Vista | $217.14 | +2% more |
| Surprise | $308.78 | +32% more |
| Tucson | $204.86 | +2% more |
| Yuma | $218.07 | +1% more |
Grocery costs in Arizona: Affordable eats in the Grand Canyon State
Arizona’s grocery costs are around 14.6% lower than the national average. Staples like dairy, fresh produce, and meat remain reasonably priced, especially in less urban areas. However, prices can vary depending on your location. For instance, in Tucson, a loaf of bread typically costs about $4.30, while in Yuma you might pay closer to $3.70. Despite these variations, the abundance of local farmers’ markets and the state’s agricultural focus means that fresh, seasonal produce is often available at competitive prices. When it comes to dining out, Arizona also offers a range of affordable options, with a meal at an inexpensive restaurant averaging around $15, allowing residents to enjoy a night out without breaking the bank.
Arizona transportation costs are on par with nationwide averages
Transportation costs in Arizona are generally manageable, with the average gas price hovering around $3.35 per gallon—right on par with the national average price of $3.39. While fuel costs are a main consideration for most, car insurance rates tend to be lower in Arizona than in many other states. In larger cities like Phoenix and Tucson, public transportation options are available, but owning a car is often necessary for getting around the expansive desert area. Fortunately, parking is usually reasonably priced, so you won’t need to allocate a large portion of your budget just for a spot. Just keep in mind that regular vehicle maintenance is essential for keeping your travels smooth.
However, for those that don’t have a personal vehicle or prefer not to drive, check out the most bikeable cities in Arizona and the most walkable cities in Arizona.
Taxes in Arizona are moderate
Taxes play a crucial role in determining the overall cost of living in Arizona, influencing both personal finances and economic opportunities. Arizona operates with a progressive income tax system, where rates range from 2.59% to 4.5%, which remains competitive compared to many other states. Property taxes are also relatively low, averaging around 0.62% of a home’s assessed value, which helps ease the financial burden for homeowners.
Arizona has a state sales tax rate of 5.6%, but when combined with local taxes, the overall sales tax can reach approximately 8.4% depending on the city. Below we’ll look at the combined sales tax rate in a few popular Arizona cities:
| Arizona City | Combined Sales Tax |
| Buckeye | 9.3% |
| Cave Creek | 9.3% |
| Flagstaff | 9.18% |
| Glendale | 9.2% |
| Lake Havasu City | 7.6% |
| Mesa | 8.3% |
| Phoenix | 8.6% |
| Prescott | 8.35% |
| San Tan Valley | 6.7% |
| Scottsdale | 8.05% |
| Tucson | 8.7% |
| Yuma | 8.41% |
While urban areas may see higher local taxes, the overall tax burden in Arizona tends to be more manageable than in states with steeper rates. This favorable tax landscape contributes to Arizona’s reputation as an affordable place to live, helping to offset other living costs and enhancing the appeal for both renters and homeowners alike.
Healthcare costs in Arizona
When it comes to healthcare costs in Arizona, residents can generally expect to spend less than the national average. While healthcare expenses can vary based on individual needs, coverage options, and location, many Arizonans benefit from a robust network of healthcare providers, including major hospitals and specialized clinics. Additionally, Arizona’s Medicaid program provides essential services to low-income families, helping them access care without hefty bills.
The national average cost for a dentist visit is $115.50 while a doctor visit is $140.46. Throughout Arizona, you’ll see a range of average costs for each. In Phoenix, a dentist visit averages $123.19, while a doctor visit averages $99. Meanwhile in Prescott, a dentist visit averages $104.24 and a doctor visit averages $92.91.
How much do I need to earn to live in Arizona?
To live comfortably, your income should align with Arizona’s cost of living and your lifestyle preferences. A general rule of thumb is to aim for an income that allows you to spend no more than 30% of your gross monthly earnings on housing. Based on Arizona’s average rent of $1,500, you should aim to earn $5,000 per month or $60,000 annually. This guideline can help you manage your budget effectively, ensuring you have enough left over for other living expenses, such as groceries, utilities, and transportation.
Keep in mind that your ideal income may vary depending on factors like your lifestyle, location within the state, and personal financial obligations. With the average rent for a two-bedroom apartment in cities like Phoenix hovering around $1,600 per month, you’ll need to earn approximately $64,000 annually to meet this guideline. However, if you plan to live in more expensive areas like Scottsdale or Flagstaff, where rent can be significantly higher, your required income may increase to $90,000 or more. Overall, Arizona’s cost of living remains more affordable compared to many other states, making it a great option for many renters.
Methodology
Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.
