When deciding where to live in Arizona, two names often pop up in the conversation: Scottsdale and Phoenix. Each has its unique flavor, lifestyle perks, and distinct vibe, but when it comes down to dollars and cents, one question seems to stand above the rest: is it cheaper to live in Scottsdale or Phoenix?

Whether you’re relocating for work, retirement, or just chasing sunshine and cacti, understanding the true cost of living in each city can save you from surprises, and a lighter wallet. This article dives into the day-to-day expenses, housing prices, taxes, and lifestyle considerations that influence affordability in both cities.

A Tale of Two Cities

Before we break down the numbers, it helps to understand what each city brings to the table.

• Is Phoenix Expensive to Live? Phoenix, the capital of Arizona and the fifth-largest city in the U.S., is a sprawling metropolis. It’s diverse, fast-growing, and filled with neighborhoods that vary greatly in style, amenities, and price. Known for its urban edge, job opportunities, and cultural offerings, Phoenix is a go-to for young professionals and families looking for affordability and convenience.
• Is Scottsdale Expensive to Live? Scottsdale, on the other hand, is often seen as Phoenix’s upscale neighbor. It’s famous for luxury resorts, high-end shopping, and an enviable quality of life. With a strong focus on aesthetics and recreation (think art galleries, golf courses, and spas), Scottsdale has a reputation for catering to a more affluent crowd.

So with that in mind, let’s get to the question at hand: is it cheaper to live in Scottsdale or Phoenix?

Housing Costs

Let’s not sugarcoat it, housing is usually the most significant expense in anyone’s budget, and this is where the biggest cost difference between Scottsdale and Phoenix is most obvious.

Phoenix Housing

Phoenix’s housing market, while heating up in recent years, remains relatively affordable compared to other major cities across the country. As of early 2025, the median home price in Phoenix hovers around $425,000, depending on the neighborhood. Renters can expect to pay about $1,500 to $1,800 for a one-bedroom apartment, with prices fluctuating based on proximity to downtown and access to public transportation.

Scottsdale Housing

Scottsdale, however, is a different story. It’s not unusual for homes here to have listing prices well into the $700,000 to $900,000 range, and in premium neighborhoods like North Scottsdale or Gainey Ranch, prices can exceed $1 million. Renters aren’t spared either, a one-bedroom apartment can easily cost $2,000 or more per month.

Utilities and Everyday Expenses

So maybe you’re okay with spending more on rent, what about everything else?

Interestingly, utilities in both cities are roughly comparable. Arizona’s climate means you’ll use air conditioning for much of the year, and those summer electric bills can get steep no matter where you live.

Here’s a quick snapshot of average monthly utility costs (as of 2025):

Transportation and Commute

Another cost that adds up quickly is transportation, especially in a city like Phoenix that wasn’t exactly built for pedestrians.

Getting Around Phoenix

Phoenix is known for its car-centric infrastructure. While public transportation exists (like Valley Metro light rail and buses), it’s not as comprehensive as in cities like New York or Chicago. Many residents find themselves relying on cars, and between gas, insurance, and maintenance, transportation costs can average around $400 to $600 per month.

Getting Around Scottsdale

Scottsdale is even more car-dependent. While there are some bike-friendly paths and limited trolley service downtown, most residents still drive. Gas prices and insurance rates are similar to Phoenix, though Scottsdale may have slightly higher car insurance premiums due to higher vehicle values and more luxury cars on the road.

Groceries and Dining Out

Here’s where things start to get interesting. You might not think of groceries as varying much city-to-city, especially when they’re just a 20-minute drive apart. But your location can absolutely affect what you pay, and where you shop.

Phoenix

Phoenix has a wide range of grocery options, from budget-friendly spots like Walmart, Fry’s, and WinCo to more premium stores like Sprouts or Whole Foods. With a bit of smart shopping, a family of four might spend around $700 to $900 per month on groceries.

Dining out in Phoenix also offers more diversity and affordability. From food trucks and ethnic eats to hole-in-the-wall gems, a dinner for two can cost as little as $30–$40 at a mid-range restaurant.

Scottsdale

Scottsdale tends to lean more upscale. While budget stores do exist, many of the popular grocery spots are more premium, think AJ’s Fine Foods, Trader Joe’s, or Whole Foods. It’s common to see higher prices on produce and meats.

Dining out? Expect to pay more. Scottsdale’s restaurant scene is amazing, but a dinner for two often starts at $60 and climbs fast. Even casual spots might surprise you with higher-than-average prices.

Taxes and Insurance

No one likes taxes, but they’re part of life, and the cost of living.

Income Tax

Arizona has a flat state income tax system, meaning all residents, whether in Phoenix or Scottsdale, pay the same percentage of their income to the state. As of 2025, Arizona has simplified its tax code to a flat 2.5% income tax rate, replacing the old tiered system.

So whether you’re a barista in downtown Phoenix or a tech exec working remotely from a luxury condo in Scottsdale, your income tax rate remains the same. There’s no advantage or penalty based on your city of residence when it comes to state income taxes.

Property Tax

Arizona has low property tax rates (about 0.66% on average), but the value of the home matters more than the rate itself. Since homes in Scottsdale are typically more expensive, you’ll pay more in property taxes even though the percentage is the same.

Example:

• $400K home in Phoenix = ~$2,640/year
• $750K home in Scottsdale = ~$4,950/year

Plus, Scottsdale often comes with HOA fees, especially in gated communities, adding to your monthly bills.

Lifestyle and Entertainment

Now here’s where the lines start to blur. Scottsdale offers a more polished, curated lifestyle, but that polish comes with a price tag.

Want to hit up the spa, go golfing, or visit an art gallery? Scottsdale’s your place, but be ready to pay for the privilege.

Phoenix offers a broader range of entertainment options, from pro sports games to free hiking trails like South Mountain or Papago Park. Sure, it has its share of pricier venues, but you can enjoy an active lifestyle without breaking the bank.

Safety and Schools

These are quality-of-life factors that aren’t strictly financial, but they do impact how much value you get from your living expenses.

Scottsdale has a well-earned reputation for safety and high-performing public schools, especially in the northern neighborhoods. This makes it attractive for families who can afford to pay more.

Phoenix varies widely. Some neighborhoods are perfectly safe and have excellent schools, while others may struggle. It’s all about choosing the right zip code.

Is It Cheaper to Live in Scottsdale or Phoenix?

So, let’s answer the big question: is it cheaper to live in Scottsdale or Phoenix?

Yes, Phoenix is significantly cheaper to live in when compared to Scottsdale. From housing and groceries to transportation and dining out, Phoenix offers a more affordable lifestyle across the board. Scottsdale, while beautiful and well-maintained, comes with higher living costs that reflect its luxury branding and amenities. 

By choosing our Phoenix movers, planning ahead, and staying organized, you can avoid common headaches and enjoy a more relaxed transition into your new home. We can make a huge difference in ensuring everything arrives safely and on time. With the right support, moving doesn’t have to be overwhelming, it can actually be a positive, even exciting experience.