The Cost of Living in Arizona in 2024: What You Need to Know
Arizona, known for its breathtaking mountain ranges and the iconic Grand Canyon, has been attracting more and more people to call it home in recent years. It’s no surprise that the state ranked in the top 10 on U-Haul’s Growth States of 2022 index. Maricopa County, where Phoenix is located, has been the largest-gaining county in population in the entire nation for the past two years, according to Census data.
However, as the state’s popularity has grown, so have housing prices. In July 2024, Arizona’s median home price reached $436,600, surpassing the national median of $406,700. Just three years ago, in July 2020, the median home price was a much more affordable $311,000.
The rising housing costs raise an important question:
Will other living expenses in Arizona also increase? Let’s delve into the details and explore the cost of living in Arizona in 2024.
Overall Cost of Living
Calculating the price tags of basic day-to-day expenses is crucial in understanding the cost of living in Arizona. According to data from RentCafe, the overall cost of living in the state is 6 percent higher than the national average. While housing costs are notably 20 percent higher, other expenses such as food, utilities, and transportation are more in line with national averages.
It’s important to note that these figures can vary significantly from city to city within the state. For instance, Phoenix, the most populous city in Arizona, is only 4.2 percent more expensive than Las Vegas but 12.03 percent pricier than Albuquerque. The cost of living is only 0.38 percent higher than Tucson but jumps to 9.82 percent when compared to Flagstaff.
Housing Costs
While the median home price in Arizona experienced a slight 1.7 percent drop from July 2022 to July 2024, concerns loom over the state’s housing market. A previous housing boom, especially in the Phoenix area, has led to increased popularity and population growth. However, the state has had to curtail new development due to a water-supply shortage, potentially impacting future housing trends.
On the flip side, the rental market seems more favorable for residents. In July, the average rent price in Arizona was $1,619, significantly less than the national median rent price of $2,038.
Utility, Transportation, and Grocery Costs
According to the MIT Living Wage Calculator, a single adult in Arizona without children spends an average of $4,686 on food annually. For a family of four, that cost rises to $13,802.
Transportation expenses, as calculated by MIT, indicate that a single adult with no children spends an average of $5,316 per year, while a family of four spends $14,058. Notably, the average cost of gas in Arizona, according to AAA, was $4.337 per gallon in early September, which is significantly higher than the national average of $3.803.
Electricity usage tends to be costly in Arizona due to the need for extensive air conditioning to combat the desert heat. EnergySage reports that Arizona residents spend an average of $3,408 per year on electricity, which is 30 percent higher than the national average electric bill.
Taxes
Arizona stands out for its relatively low property taxes, with a property tax rate of 0.6 percent, ranking 39th out of the 50 states according to the Tax Foundation. The state has a 2.5 percent flat-rate individual income tax and a relatively high sales tax rate, with a combined state and local sales tax rate of 8.37 percent, ranking 11th highest in the nation.
Arizona’s Job Market
Arizona boasts a diverse job market with large companies like PetSmart and Banner Health headquartered in Phoenix, and Circle K based in Tempe. Other major employers include Walmart, Amazon, and Kroger grocery stores. As of July 2024, the state’s unemployment rate was 3.6 percent, according to the U.S. Bureau of Labor Statistics.
Moving to Arizona
If you’re considering a move to Arizona, whether it’s the bustling city of Phoenix, a smaller town like Tucson or Mesa, or the remote desert beauty, it’s essential to have an experienced local real estate agent by your side. The homebuying process can be confusing and stressful, but a licensed professional can help you discover options that align with your needs and budget. Be sure to seek recommendations from friends and family and interview at least three candidates before making a selection.
FAQs on The Cost of Living in Arizona in 2024: What You Need to Know
How has the cost of living in Arizona changed from 2023 to 2024?
In 2024, the cost of living in Arizona may have experienced fluctuations influenced by factors such as inflation, housing market trends, and changes in utility rates. While some expenses like housing and transportation may have seen slight increases, others such as healthcare costs could have remained relatively stable or changed due to various factors.
Are housing prices still relatively affordable in Arizona in 2024?
Housing prices in Arizona can vary by region, but overall, the state has historically offered relatively affordable housing compared to national averages. However, demand and market conditions can impact affordability, so individuals considering relocating to or within Arizona should research current housing trends in their desired areas.
How do utility costs in Arizona compare to previous years in 2024?
Utility costs in Arizona, including electricity, water, and natural gas, may have experienced changes in 2024 influenced by factors like energy policies, infrastructure investments, and weather patterns. Residents should monitor their utility bills and explore energy-efficient options to manage costs effectively.
What transportation trends should residents consider regarding the cost of living in Arizona in 2024?
Transportation costs in Arizona can be affected by factors such as fuel prices, vehicle maintenance expenses, and public transportation availability. As technology advances and environmental concerns shape transportation policies, residents may encounter evolving options and costs related to commuting and travel within the state.
Are there any notable changes in healthcare affordability for Arizona residents in 2024?
Healthcare affordability in Arizona can be influenced by factors such as insurance coverage, healthcare policies, and the availability of medical services. Residents should stay informed about changes in healthcare regulations and explore options such as employer-sponsored plans, government programs, and healthcare marketplaces to assess affordability and access to care.
Conclusion
Arizona offers incredible natural beauty and a growing job market, but it’s important to be prepared for the higher housing costs and potential fluctuations in the real estate market. Understanding the overall cost of living and considering your specific needs and preferences will help you make an informed decision about living in the Grand Canyon State in 2024.