Cost of Living in Phoenix: What to Expect When Living Here as a Renter

Finding the right apartment is only part of the journey of moving to a new city. Before signing that lease, it’s smart to understand what day-to-day life will cost you. From groceries and health care to entertainment and utilities, knowing the average cost of living can help you feel more prepared and confident about making Phoenix your new home.

With its sunshine-filled days, stunning desert landscapes and growing job market, it’s easy to see why Phoenix has become one of the most sought-after cities for renters in recent years. But, like any city, the cost of living in Phoenix can vary depending on your lifestyle and needs.

Whether you’re relocating for work or school or simply craving a fresh start, comparing the cost of living in Arizona — especially in Phoenix — to both the state and national average will help you make an informed move.

What is the average cost of living in Phoenix?

The median household income in Phoenix is around $77,041. While this gives you an idea of earning potential, it’s just as important to understand how far that income can stretch. Phoenix’s cost of living is about 3% lower than the Arizona state average, but about 3% higher than the national average. Housing is often the biggest expense for renters and, in Phoenix, it’s about 17% more expensive than the national average. On the bright side, utility costs are slightly below the national average, thereby helping to ease the overall financial load.

Everyday essentials in Phoenix are a mixed bag: Groceries cost around 4% more than the U.S. average, but clothing is about 6% cheaper. Health care is another plus for residents with medical services averaging around 7% less than the national cost. Or, if entertainment and self-care are part of your lifestyle, Phoenix offers some savings there, too. For example, non-essential costs (like dining out and grooming services) tend to be about 6% more affordable here compared to other U.S. cities, giving your budget a little extra breathing room.

Compared to other Arizona cities, Phoenix strikes a nice balance between affordability and city life. While places like Flagstaff or Sedona can be pricier, Phoenix offers big-city opportunities with costs that are often easier on the wallet, making it a smart option for renters looking for value and convenience.

Is Phoenix a great pick for renters?

Deciding where to live is always personal, but when you break down the numbers, Phoenix offers strong value. With a median household income of $77,041 and savings on essentials like health care, entertainment, and clothing, the city gives renters both practical and financial reasons to call it home.

Compared to both the Arizona and national averages, Phoenix lands right in the middle. While housing costs are higher than the U.S. average, lower expenses in other categories help balance things out to make Phoenix a smart choice for renters seeking city living without the sky-high prices of other metro areas.

If you’re considering a move, Phoenix offers a warm climate, job opportunities and a lifestyle that mixes comfort with convenience. Keeping these cost-of-living details in mind can help you plan your budget, choose the right neighborhood and settle into a new home that fits your goals.

Or, if you’re interested about the cost of living in other cities, check out our guides for Dallas; Sacramento, CA; Denver; St. Paul, MN; or Knoxville, TN.