When people hear Arizona, they think of the Grand Canyon, sunny weather, and blue skies. The southwestern state has vast barren lands and bustling cities like Phoenix and Tucson. It's one of the best states to live with affordable housing but slightly high taxes. The people in Arizona have high spirits and know how to beat the heat. If you love sunshine, you'll love Arizona. The state offers scenic sunsets and has breathtaking natural wonders like the Grand Canyon.
Are you planning to move to Arizona? The Grand Canyon state awaits to welcome you with so much to explore. Moving to Arizona can be a big decision, you should know the living costs and the lifestyle to start easy. This blog covers everything about the cost of living in Arizona in 2024. You can compare your current living costs with the estimated living costs in Arizona to make the final move. Remember, making an informed decision is critical to avoid any hassles.
Let’s explore the cost of living in Arizona in 2024 to see if it's worth it to move to Arizona!
Average Costs of Living in Arizona
Arizona is not a budget-friendly state. Its living costs are quite high when compared to other adjacent states. When moving to Arizona you may need to adjust your budget for a comfortable living. According to the Bureau of Economic Analysis (BEA), an average Arizonian spends about $44,875 per year in terms of living costs. The amount can vary depending on a person's income, lifestyle, and location. For instance, living costs in urban cities like Phoenix and Tucson can be higher than in smaller cities like Prescott.
According to MERIC's living cost index of 2022, Arizona was ranked 37th out of 50 US states in terms of affordable living costs. Most of the southwest, especially California, Texas, and Nevada have high living costs. If we segregate based on affordability, New Mexico may be an attractive state with moderate living costs. In the MERIC's living cost index of 2022, New Mexico was considered the 19th most affordable state to live in the US.
The average living costs depend on multiple expenses ranging from housing, utilities, healthcare, transportation, etc. Here’s the breakdown of average living costs in Arizona:
|
Category |
Average Yearly Costs Per Person |
|
Housing and Utilities |
$8,184 |
|
Health Care |
$6,828 |
|
Groceries |
$3,346 |
|
Transportation |
$1,061 |
|
All Other Personal Expenditures |
$25,457 |
Different Living Costs in Arizona in 2024
After the covid-19 pandemic, the living costs in the entire US have risen significantly. Whether you're in Arizona or Alaska managing and predicting the budget is quite difficult. Many people are migrating to different states to afford a comfortable living. Let's explore the different living expenses that Arizonians are paying.
Housing Costs in Arizona
Housing in Arizona is cheaper than in most US states and readily available. According to a Zillow report from 2023, an average house in Arizona costs about 409,196 dollars. The costs can vary from city to city, you will find budget-friendly homes in semi-urban areas than in downtowns. If we compare cities, the costliest housing is in Flagstaff followed by Phoenix.
Rents are also affordable in Arizona, you can find an apartment in a city like Tucson for rent at $1,249 only. However, most residents in Arizona are homeowners, you’ll rarely find renters due to affordable housing. For instance, about 73% of Sedona residents are homeowners. The trend is similar in all other second-tier cities.
Utilities & Groceries
Utilities costs are very high in Arizona, especially the electricity expenses are well above the national average. The Arizonians pay $128.40 in electric bills per month on average whereas the median monthly electric bills in the US are 111.67 dollars only. The high electricity costs are due to extreme heat in the region. The per capita energy consumption during summers surpasses the national average.
The groceries in Arizona are relatively cheaper and the residents spend less on food than the median range. The Bureau of Labor Statistics (BLS) report suggests that people in Arizona are spending 11% of their income on food compared to 12.6% spent by other US citizens. The prices for regular food items like milk are also lower in Arizona.
Transportation Costs in Arizona
Transportation in Arizona can be very expensive due to high gas prices. The average per gallon price is around $4.05 whereas the national average per gallon gas price is $3.68. The whole southwestern region has higher gas prices than other parts of the US. If you're using personal transportation, the annual average transportation costs will be within the $5,316 to $15,073 range depending on the size of your family.
The public transport landscape isn’t very good in Arizona but the major cities like Phoenix and Tucson have good public transport available. You can travel on Phoenix’s Valley Metro with a monthly pass of $64. The rates are more or less the same for other cities having public transport options.
Healthcare & Childcare Costs
The health care costs are highly variable and depend on an individual's age, health, location, etc. A state report from the Bureau of Economic Analysis (BEA) indicated that the average healthcare costs in Arizona are about $6,828 per year. When compared to other US states, these costs are moderate.
Moreover, childcare can be expensive in Arizona. If some families are unable to afford childcare, the Arizona Department of Economic Security has specialized programs to support them. The average childcare cost of an infant in Arizona is $1,283. These costs are reduced when a child grows. For instance, the average childcare for a toddler is $787 in Arizona.
Government Taxes
The government taxes in Arizona are variable and comparatively on the higher side. As income tax depends on your income range, you can be charged 2.59% to 4.50% tax in Arizona. The sales tax varies from city to city, the base rate is around 5.6% which is higher than the national average. The average sales tax in Arizona is 8.33% and it can go up to 11.2% in cities like Phoenix.
Moreover, property taxes in Arizona are the lowest in the US, the average effective property tax rate is just 0.62%. The national average property tax is 1.07% which is higher than Arizona. It's the reason housing is cheap and readily available. To your surprise, the taxes on gasoline are also lowest in Arizona but the prices are quite high.
How to Save Living Costs in Arizona?
Did Arizona's living costs come as a shock to you? Don't worry these are averages and can differ from your living expenses. You can still save on living costs in Arizona by planning an effective budget.
Before moving into your new home, install a solar generator kit to eliminate electric bills, you can opt for public transport to reduce transportation expenses and keep on exploring other ways to reduce living costs.
Since electric expenses are high, it's better to come prepared and install a solar generator kit before moving in. The BLUETTI hi-tech solar generator kits are high-performing and affordable. You can browse through the following options to select the one that best suits your needs.
BLUETTI AC500 + B300/B300S Home Battery Backup
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BLUETTI AC200MAX + 2*B230 + 3*PV200 Solar Generator Kit
The BLUETTI AC200MAX + 2*B230 + 3*PV200 Solar Generator Kit is a complete package to power your house on solar energy. It has a capacity of 8,192Wh to run all your appliances and equipment. The power station combined with BLUETTI B230 battery packs supports fast recharge with dual charging (AC+Solar). The multi-recharge facility is also enabled for added convenience. The system uses advanced LiFePO4 batteries having high efficiency and 3500+ life cycles.
The system comes with BLUETTI PV200 solar panels that are known for their high efficiency and longevity. These panels are made using A+ grade monocrystalline solar cells with ETFE coating. The panels are also IP65-rated to ensure protection against rough weather conditions. The panel's design is made compact and foldable, they're easy to carry and store. You can use these panels with all BLUETTI power stations.
Final Thoughts
Hope this blog answers all your queries related to living costs in Arizona. If you're planning to move to the Grand Canyon state, you should fairly estimate the expenses based on your lifestyle and preferred location. It'll help you effectively manage your budget and adjust to the new state. Once you're settled, take out some time to explore the natural wonders and embrace the beauty of Arizona!
