How High Is the Cost of Living in Arizona?
The cost of living in Arizona is on par with the national average. Here’s a look at housing prices, average grocery bills, transportation fees, and more.
Written by Annette Maxon
Reviewed by Melanie Reiff
Arizona
is becoming an increasingly popular state as people come in search of year-round sun and affordable prices. To live comfortably in Arizona, a single adult needs $36,254 a year, which is more than the national average.Known for scorching temperatures, stunning desert landscapes, and Grand Canyon National Park, Arizona has an endless appeal for warm-weather lovers and outdoor enthusiasts alike. But as the state grows increasingly popular, is it still affordable to live there?
Jerry
, the #1 super app
for finding cheap home insurance
, did the digging into the true cost of living in Arizona for you. This article covers the state’s cost of living index, how much you may pay for non-negotiable expenses, and the state’s most affordable cities. Without further ado, here are the actual costs of living in the Grand Canyon State. Let Jerry find you the best homeowners insurance policy for your needs
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How high is the cost of living in Arizona?
Arizona isn’t known for having the same sky-high prices as its neighboring state of California, nor does it have the low prices of Texas.
Instead, the cost of living in Arizona is on par with the rest of the country—the state’s cost of living index (COLI) is 106.7, just three points higher than the average cost of living score for the US.
When it comes to the price of living index, the average US index score of 100 is the comparison point for figuring out the affordability of other states. Any state that scores above 100 has a higher-than-average cost of living index and vice versa.
So, how does Arizona stack up to other states? Compared to the most expensive states in the country, Arizona is affordable. The Grand Canyon state is the 14th most expensive in the country, with Hawaii being the most costly at 192.7 on the cost of living index, New York at 152.1, and California scoring 139.7.
To get an idea of where the states surrounding Arizona fall, New Mexico scores 93.9 on the cost of living index, and Texas comes in at a modest 92.1.
Food: $333 to $1,193 per month
MIT’s
Living Wage Calculator
estimates that the monthly cost of food in Arizona ranges from $333 for a single person to $1,193 for a family of five. That’s approximately $3,999 to $14,321 per year! However, these numbers are highly dependent on your family’s size and composition, location, and income. For comparison, the average US grocery bill is $411 per household.
The average cost of food does not consider the cost of restaurant meals or beverages—rather, this living expense only accounts for the non-negotiable piece of your budget that goes to keeping yourself and your family well-fed!
Healthcare: $217.25 per month
Compared to the country’s average annual healthcare cost of $12,530 per person, the average Arizona resident spends $2,607 per year on annual healthcare expenses, approximately $217.25 per month.
However, the average healthcare bill can be wildly different from household to household. If you are young with little to no health concerns, your monthly healthcare expenses will likely be lower than someone who has an aging or chronically sick household member.
Housing: $915.67 to $1,764.67 per month
Arizona residents spend $10,988 to $21,176 each year on housing expenses. This breaks down to between $915.67 and $1,764.67 per month.
But how does this cost differ between homeowners and renters? Let’s take a closer look at how this breaks down.
The average home value in Arizona is $445,126, which is significantly higher than the US average of $337,560. However, the Grand Canyon State pays less on monthly home mortgages than the US median—Arizona’s median monthly mortgage payment is $1,457, just lower than the US median monthly payments of $1,487.
Then, how affordable is rent in Arizona? Since it’s hard to capture the rental prices in one number, we used data from
Zillow’s rental market summaries
to give you a closer look at the median cost of rent in different Arizona cities:- Phoenix median rent: $2,151
- Scottsdale median rent: $3,000
- Glendale median rent: $2,165
- Sun City median rent: $2,000
- Paradise Valley median rent: $15,000
Keep in mind that a one-bedroom apartment in
Phoenix
may cost you more than a 2-bedroom apartment in a less expensive area in the state.Transportation: $411.50 to $1,217.75 per month
On average, Arizona residents spend $4,938 to $14,613per year on transportation.
However, like other cost of living factors, the variance in this average cost is dependent on where you live, household composition, and workplace location. If you live alone and opt for public transportation, you will pay less than a family who drives from place to place.
With these differences in mind, here is a closer look at the average cost for some common modes of transportation in Arizona:
- Average annual cost of car insurance in Arizona: $2,465 to $2,986 (liabilityonly vs.full coverage)
- Valley Metro monthly pass in Phoenix: $64
- Average cost of a gallon of gas, June 2022: $5.13
How much do you need to live comfortably in Arizona?
You may be wondering, how much does a person need to live comfortably in the Grand Canyon State? A single person with no children needs to make $17.43 per hour or about $36,254.40 a year.
Of course, where you live and your family’s composition impacts this dollar amount. For a family of four with one working adult, an hourly wage of $37.83 or $78,665.60 per year can comfortably support life in Arizona.
However, the cost of living in Arizona becomes less encouraging when compared to the state’s minimum wage of $13 per hour—especially when considering that many have expenses that go beyond the bare minimum.
If you’re curious about how the costs of non-essentials in Arizona stack up to the national average cost, here’s a closer look at the Arizona price tag for popular items:
- Average cost of a date: $106.36 (US average: $116)
- Average cost of a restaurant meal: $17.00 (US average: $13.00)
- Average cost of a Big Mac: $4.43 (US average: $3.99)
- Average sales tax: 8.40%(US average: 5.09%)
When it comes to spending, there is no one size fits all formula. What allows one person to live comfortably in Arizona may not be enough for another. So, don’t worry if you spend above or below the recommended $37,000—this suggested income is simply an average that can meet the non-negotiable living costs in Arizona.
The Arizona cities with the lowest cost of living
Even though the cost of living in Arizona is on par with many of the national average costs, cities like Phoenix and
Scottsdale
are significantly more expensive. Instead of opting for one of these hotspots, choosing a less-expensive city to put down roots can reduce your living costs.Here are five Arizona cities with a cost of living index that is below the state’s average:
- Avondale(COLI: 99.7): This peaceful Phoenix suburb enjoys all the benefits of being close to a major metropolitan area without having to deal with the high costs, traffic, or crowds of city living.
- Coolidge(COLI: 89.6): Home to Casa Grande National Monument, this small town is situated between Phoenix and Tucson, making it perfect for living on a budget while still being within driving distance of a city.
- Golden Valley(89.9): Not only are prices well below the state’s average, this census-designated area is surrounded by the Mojave National Preserve, Colorado River, and within driving distance of Las Vegas.
- Casa Adobes (COLI: 99.0): Nine miles fromTucson, this suburb has become a haven for families and young professionals because of its affordable prices and access to the outdoors.
How to easily find home insurance in Arizona
Though Arizona is an affordable state overall, that doesn’t mean it’s dirt-cheap. When it comes to
homeowners insurance
, Arizona residents pay $1,189 per year. This is lower than the national average of approximately $1,312 annually—but it can still feel like a challenge to find a policy that provides the coverage you need at an affordable price.A licensed and top-rated broker app,
Jerry
is the fastest way to find the insurance policy that’s right for you. Whether you’re looking to find renters insurance
or insure your house, Jerry finds all the info you need in less than a minute. All you need to do is pick a policy from Jerry’s recommendations and the super app takes it from there—and our team of experts handles all the calls and paperwork to get you signed up. With that level of service, it comes as no surprise that Jerry earned a 4.7/5 on the App Store!
“Jerryis the future of car insurance! I downloaded the app, entered the information, picked my insurance rate, and paid my fee. I even switched insurance providers easily! Jerry saved me $182/month so quickly!” —Paulina F.
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FAQ
How much does it cost to live in Arizona per month?
One person can live comfortably in Arizona on $3,020.21 per month.
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