What started as a place known for its desert beauty and affordable lifestyle has gradually transformed into one of the fastest-growing urban hubs in the country. With all this growth, a question I often hear, and even ask myself, is: is Phoenix expensive to live now compared to just a few years ago?

Back when I first moved here, you could find a decent one-bedroom apartment for under $1,000, and buying a home didn’t seem like such a stretch. But today, with rising home prices, steeper rent, and increased costs for everything from groceries to gas, the conversation has definitely shifted. 

Whether you’re a longtime resident or someone considering a move, it’s important to understand what the cost of living in Phoenix really looks like in 2025, and if it still lives up to its reputation as an affordable alternative to places like LA or San Francisco.

Housing Market Trends 

​As of April 2025, the Phoenix housing market is undergoing a notable transition toward greater balance. The median home value in Phoenix stands at approximately $416,728, reflecting a 1.7% decrease over the past year . However, other sources report the median sale price around $450,000, indicating a modest year-over-year increase of 1.8% .

A significant factor influencing this shift is the substantial rise in housing inventory. Active listings in the Phoenix-Mesa-Scottsdale area reached 18,701 in March 2025, up from 15,084 in December 2024 . This increase in supply is providing buyers with more options and reducing the intense competition that characterized the market in previous years.​

Rental Costs 

For those not looking to buy, rental prices are another crucial aspect of the cost of living in Phoenix. In Phoenix in 2025, the average rent for a one-bedroom apartment ranges from $1,400 to $1,600 per month, depending on the neighborhood. Two-bedroom apartments in central Phoenix can cost between $1,800 to $2,200 per month.​

These rental rates contribute to the perception that Phoenix is expensive to live, especially for individuals and families on a tight budget. However, it’s worth noting that rental prices can vary significantly across different areas of the city, with some neighborhoods offering more affordable options.​

Utility Expenses 

Utilities are another component of the cost of living in Phoenix. Given the city’s hot desert climate, air conditioning is a necessity, leading to higher electricity bills during the summer months. 

While utility costs are slightly higher than the national average, they are not exorbitant. However, when combined with other expenses, they can contribute to the overall assessment of whether Phoenix is expensive to live.​

Healthcare Expenses 

Healthcare costs in Phoenix are slightly lower than the national average. In Phoenix a doctor’s visit costs approximately $131.05, while a dentist visit is around $107.76. These figures indicate that healthcare expenses may not heavily influence the perception of whether Phoenix is expensive to live.​

However, it’s essential to consider individual healthcare needs and insurance coverage, as these can significantly impact out-of-pocket expenses.​

Income and Affordability 

Assessing whether Phoenix is expensive to live also involves examining income levels. Flyhomes states that the median household income in Phoenix is $77,041, with the median income for an individual at $43,488. These income levels are close to national averages but may not fully offset rising housing and utility costs. While some dual-income households may find Phoenix manageable, single-income earners might struggle depending on their lifestyle. This raises an important question for many newcomers: is Phoenix expensive to live in compared to their current city?

Despite moderate incomes, Phoenix’s affordability in areas like healthcare and food helps balance the equation for many residents. The city remains more affordable than places like Los Angeles or San Francisco, making it attractive to those relocating from more expensive metros.

Property Taxes and State Income Taxes

Arizona, including Phoenix, boasts relatively low property taxes, which is a bright spot for homeowners. According to SmartAsset, the average effective property tax rate in Arizona is 0.60%, significantly below the national average of 0.99%.

Another advantage for residents is that Arizona has a flat state income tax. As of 2025, it’s 2.5% across the board. This simplicity and lower rate can contribute to overall affordability and should be factored in when asking, is Phoenix expensive to live?

Education Costs 

Education expenses can also shape the cost of living in Phoenix for families. Public schools are generally well-funded in suburban areas, while private school tuition can range from $8,000 to $18,000 per year, depending on the institution. For college students, Arizona State University remains a top-tier local option, offering relatively affordable tuition compared to private universities.

While families choosing private education may face higher costs, the availability of reputable public schools and community colleges softens the blow. These dynamics further influence whether Phoenix is expensive to live, especially for those with children.

Childcare and Family Living Costs

For families with young children, childcare expenses can be substantial. According to the cost of child care, average daycare costs in Phoenix range from $800 to $1,200 per month per child. These figures can be daunting, especially for single parents or those with multiple children.

That said, some areas in Phoenix offer more affordable care options, and government assistance or tax credits can help. This makes family budgeting a crucial part of answering the question: is Phoenix expensive to live?

Lifestyle and Entertainment Costs

Phoenix has a thriving entertainment scene, from outdoor adventures to world-class dining and cultural experiences. Dining out at mid-range restaurants costs around $50 for two, and monthly gym memberships average $45. Concerts, sporting events, and festivals can add up, especially for active social lifestyles.

If you’re someone who enjoys an active lifestyle, these added costs may contribute to your perception that Phoenix is expensive. But those who prefer a quieter, home-centered life may find entertainment costs very manageable.

Is Phoenix Expensive to Live?

So, is Phoenix expensive to live? The answer depends on your circumstances. The city offers a lower cost of living than many major metros, especially on the West Coast. However, rising housing costs, utilities, and transportation expenses mean it’s no longer the budget-friendly haven it once was.

Still, the cost of living in Phoenix remains manageable for many, especially those with stable incomes and realistic budgets. Whether you’re moving for work, retirement, or a lifestyle change, Phoenix can still offer good value, if you plan ahead and hire movers in Phoenix to make your transition smooth and stress-free. Our team offers personalized service with careful handling, timely scheduling, and transparent pricing. What sets us apart is our commitment to customer satisfaction, we prioritize clear communication, efficient packing, and dependable transportation to ensure every move is seamless. Happy Moving!