It’s not as cheap to live in our desert oasis as it used to be, but the good news is that the cost of living in Phoenix is still lower than in larger cities in other states. The Phoenix real estate market continues to make national headlines without weakening on the horizon. Between 2019 and 2020, the population is in Maricopa County and its unincorporated areas 3.5% grown, Netting 77,117 new residents.
ALSO READ: Phoenix # 2 in the US for Home Value Growth
Phoenix is the fifth most populous city in the country and will continue to grow as more and more hopeful people move here. Whether you call the Valley your new home or need a good reminder of how good it is with a Phoenix address on your name, let’s see how the city compares.
How is the cost of living calculated?
Trevor Halpern is North & Co’s # 1 Independent Agent. and founder of the Halpern Residential real estate group.
Cost of Living Indices compare the cost of living in one city with another. That way, you can get a better idea of how much money you need for everyday needs like housing, groceries, gas, utilities, etc. The biggest factor is usually rent or mortgage as this is the bulk of your budget.
Ratings are based on a scale where 100 is the average cost of living for the entire country. For example, a cost of living index below 100 means Phoenix is cheaper than the US average, while an amount above 100 means Phoenix is more expensive than the national average.
How Phoenix compares to other cities
Previously, we found that the cost of living in Phoenix is still affordable, though Home values in the area are rising. While it may not feel like it to those who have been here for a while, it is a stark contrast to what other cities are dealing with.
In the following graph, we measure the cost of living in Phoenix with seven comparable cities; San Francisco, New York, Los Angeles, Washington DC, Portland, Las Vegas and Chicago. Phoenix has an average cost of living of 104, which means it is slightly more expensive to live here than the national average. While this may seem high, it is a welcome statistic to relate to the other cities on the board, particularly San Francisco, where the cost of living is a whopping 269. No wonder the majority of Arizona’s new residents come from major cities in metropolitan areas of California. Life is financially more manageable here, which is why Phoenix is experiencing a 9.8% increase. Growth rate, almost three times the national average of 3.4%
How much income do you need to live comfortably in Phoenix?
You can’t beat the year-round sunshine, scenic desert adventures, eclectic southwestern cuisine, and cultural arts. However, the job market is highly competitive and attracts some of the best minds in engineering and math.
Current data shows that you must make at least $ 86,407 if you’re in the market to buy a home and $ 86,143 if you’re planning to rent. Interestingly (and an indication of the housing shortage in Phoenix) the average income in the area is $ 52,080, which is about $ 34,000 less than what it takes to build a roof over your head. If your salary is closer to the average average then it’s worth seeing where to adjust your budget so you can afford life in Phoenix.
Cost of Living Calculator
There are many cost of living calculators online that can help you get a sense of how far your money will go in various areas. If you’re not sure where to start, we recommend:
• Numbeo.com
• Bestplaces.net
• Salary.com
• Areavibes.com
Whether you’re considering moving to Phoenix or a local resident looking to move, we can help you figure out the financial nuances of packing and moving your entire life to a new location. You want the right team to take care of you Interest. At Halpern Residential, our close-knit group of experienced real estate agents is part of the community. We live, work and play here and invest in the people who call Phoenix their home.
Trevor H. Halpern, JD is the # 1 Independent Agent at Phoenix-based North & Co. and the founder of Living Halpern Real estate group. As a native of the Phoenix, Halpern’s deep knowledge of people and real estate has enabled him to achieve customer success in all areas of the city. As a graduate of ASU’s College of Law, Halpern prides itself on delivering high-level strategies, efficient negotiation, and precise tactical execution. Since 2011, Halpern has sold over $ 100 million worth of real estate and is among the top 1% real estate agents in the greater Phoenix area.
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