Considering a move to Arizona? With its sunny weather, growing cities, and beautiful outdoor spaces, the state has become a top choice for many. The average cost of living in Arizona is higher than the national average, but still more affordable than coastal states like California.
As of 2025, Arizona’s cost-of-living index is 111.5, meaning expenses are about 11.5% above the US average. This includes housing, utilities, and everyday essentials. Let’s explore what the average cost of living in Arizona looks like across different categories and how it compares with neighboring states.
TL;DR: Average Cost of Living in Arizona 2025
- Cost-of-living index: 111.5 (US average = 100)
- Median rent (2BR): $1,776
- Statewide average rent: $1,691
- Median home price: $444,500
- Required salary for comfortable living: $101,600 (single adult)
- Median household salary: $53,444
- Above national average: Utilities (+4%), groceries (+3%), transportation (+7%)
- Median daycare/preschool: ~$950/month
What is the Average Cost of Living in Arizona in 2025?
It is important to understand the average cost of living in Arizona when deciding to relocate. So, living comfortably in the state in 2025 means planning for a cost-of-living index of 111.5. This number is higher than in most Western states. However, Arizona is still far more reasonable than the California coast.
Generally, a single adult will need about $101,600 per year to support a middle-class lifestyle. For a family of four, the amount climbs to nearly $277,000. Major regions like Phoenix, Chandler, and Gilbert often have higher living expenses in Arizona, especially for housing and transportation.
Typical monthly expenses include:
- Rent (2BR): $1,776 (higher in Phoenix and Scottsdale)
- Utilities: Around $180–200
- Groceries: 3% above the national average
- Transportation: 7% above the national average; car insurance and gas cost more in metro Phoenix
- Healthcare: 4% above the national average
- Daycare/Preschool: About $950 per month
Therefore, even small changes in the region can mean different monthly budgets.
Housing and Rental Market in Arizona
Housing is the largest factor shaping the average cost of living in Arizona. Home prices have risen in recent years, especially in Phoenix, Tucson, and their busy suburbs.
Statewide, the median rent for a two-bedroom apartment is $1,776, with the overall average rent at $1,691. Meanwhile, the median home price sits at $444,500. This price is climbing, but is still much lower than on either coast.
Compared to peer states:
- vs. California: Arizona rent is about 41% lower; home prices are roughly 50% lower.
- vs. Nevada: Rent is about 5% higher, but home prices are about 5% lower.
- vs. New Mexico: Rent is 33% higher; home prices are 66% higher.
- vs. Texas: Rent is 31% higher; home prices are 29% higher.
- vs. Colorado: Rent is 4% lower; home prices are 22% lower.
Therefore, Arizona’s housing market is a middle ground. In Phoenix and Scottsdale, prices are the highest. Meanwhile, Tucson and Flagstaff offer more affordable options, although prices are climbing there too.
On the other hand, the East Valley—home to Chandler, Mesa, and Gilbert—has become a hotspot for tech workers and families, with fast-rising rents. Smaller cities and college towns like Tempe are still relatively budget-friendly for renters or first-time buyers.
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Utilities and Other Living Expenses in Arizona
Because summers are long and hot, utility costs in Arizona may surprise some newcomers. In fact, utility prices average 4% above the national level.
Here’s how utility costs compare:
- Arizona: 4% above the national average
- California: 31% above the national average
- Nevada: 8% above the national average
- New Mexico: 14% below the national average
- Texas: 3% below the national average
- Colorado: At the national average
Groceries in Arizona are also slightly higher—about 3% more than average. In addition, transportation costs are 7% above the US average. High insurance rates, fuel costs, and longer commutes drive up these expenses, especially in larger metro areas.
- For example, grocery bills in Phoenix are higher than in many parts of Texas and New Mexico.
- Transportation is about 38% less expensive than in California, but it is costlier than in Texas or New Mexico.
- Healthcare expenses are 4% above the national level, but they are still more affordable than in California.
Income and Job Market in Arizona
Arizona’s economy is strong, which impacts both the average salary in Arizona and the actual salary needed to live comfortably. As of 2025, a single adult will need close to $101,600 per year to feel secure. Nonetheless, the median salary is much lower, at $53,444.
Compare income requirements in peer states:
- Arizona: $101,600 needed for comfort; $53,444 median salary
- California: $144,900 needed; $68,000 median
- Nevada: $95,000 needed
- New Mexico: $88,780 needed
- Texas: $96,000 needed
- Colorado: $108,220 needed
Tech and healthcare jobs thrive in Phoenix, while Chandler and Mesa attract workers for their strong STEM economy. Therefore, Arizona attracts professionals looking for work and lifestyle upgrades from pricier states.
Is Arizona’s Living Cost Worth It?
The cost of living in Arizona region varies greatly. For many, the answer is yes—Arizona remains more affordable than California and Colorado. It does, however, cost more than Texas, Nevada, or New Mexico.
The state’s indoor-outdoor lifestyle and job growth draw both individuals and families. Daycare and housing—especially in Phoenix—are more expensive now, so careful budgeting is wise.
Regional Insights & Relocation Tips
If thinking about relocation, consider these Arizona regions:
- Phoenix Metro: Highest housing and commuting costs, but plenty of jobs
- Tucson: Lower expenses, vibrant downtown, and a strong university presence
- Flagstaff/Prescott: More expensive, but with cooler summers and access to outdoor recreation
- East Valley (Chandler, Mesa, Gilbert): Fast growth, higher home prices, excellent tech jobs
- Yuma/Kingman: Cheaper housing, friendly to families and retirees
Research each area well before moving. Also, plan for higher energy bills in the summer. Weigh easy access to amenities against commute length and your housing budget.
Final Thought on the Cost of Living in Arizona
The average cost of living in Arizona falls between pricey coastal states and more affordable inland neighbors. Housing and daycare are on the rise, but salaries and amenities help balance those costs.
In addition, Arizona is a smart choice for many, combining Southwest charm with big-city opportunity. However, finding the right region—and the right budget—remains key to enjoying all that the state offers.
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FAQs
Is Arizona expensive compared to neighboring states?
Arizona is pricier than New Mexico and Texas, slightly higher than Nevada and Colorado, but still much more affordable than California.
What’s the average rent for a two-bedroom apartment in Arizona?
The statewide average rent for a two-bedroom apartment is $1,776 per month.
How much salary do you need to live comfortably in Arizona?
A single adult should plan for around $101,600 per year to maintain a comfortable lifestyle.
Which region in Arizona is the most affordable?
Central Arizona and smaller cities outside Phoenix and Tucson generally offer the lowest housing costs.
Are groceries and utilities expensive in Arizona?
Both are slightly above the national average—Arizona utilities run about 4% higher, and groceries are around 3% higher. Summers may bring higher electricity bills.
