Arizona Cost of Living
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Arizona draws thousands of new residents each year with its sunny skies, natural beauty and vibrant cities. But before making a move, it’s essential to understand how daily expenses — from housing to health care — will affect your family’s budget and long-term plans. Having a clear view of typical costs can make your transition smoother.
To determine the cost of living in Arizona, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Arizona spend $53,921 each year on goods and services, on average.
Jump to insightThe median rent in Arizona is $1,341, versus the national median rent of $1,639.
Jump to insightResidents in Arizona spend $271.84 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $3.28 in Arizona.
Jump to insightRecent data shows that employees in Arizona pay $1,442 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Arizona
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Arizona was $53,921 in 2023. This figure covers what Arizonans typically spend each year on housing, health care, groceries, utilities and other essentials.
Here’s a breakdown of the largest spending categories in Arizona:
| Category | Annual per-capita cost in Arizona |
|---|---|
| Housing and utilities | $10,961 |
| Health care | $7,943 |
| Food and beverages for off-premises consumption | $3,923 |
| Gasoline and other energy goods | $1,346 |
| All other personal consumption expenditures | $29,749 |
| Total cost | $53,921 |
Housing costs in Arizona
Housing is the largest expense for most Arizona households. According to 2025 data from Apartments.com, the average rent in Arizona is $1,341, while the national average rent is $1,639. Where you choose to live and the size of your home will impact your monthly rent. Data from the U.S. Census Bureau’s 2023 American Community Survey shows the following average monthly rents in Arizona:
- One-bedroom rent: $1,345
- Two-bedroom rent: $1,623
- Three-bedroom rent: $1,860
- Four-bedroom rent: $2,156
For those interested in buying, the median home price in Arizona is $438,400, compared with the U.S. median home price of $446,638.
Arizona property taxes are also a consideration — the state’s effective property tax rate is 0.44%, which influences overall housing costs.
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Food costs in Arizona
How much you’ll spend on groceries and dining out in Arizona depends on your shopping habits and where you live. The most recent U.S. Census data shows the average weekly grocery bill in Arizona is $271.84, compared with a U.S. average of $270.21.
Families who often shop at larger supermarkets or local markets may be able to trim costs, whereas frequent visits to restaurants or cafes — particularly in urban areas like Phoenix or Scottsdale — can add up quickly. In smaller towns and rural regions, grocery prices may be lower, but options for specialty foods or dining out tend to be more limited.
Transportation costs in Arizona
Gas and car insurance are two significant costs for many Americans. As of August 2025, the average price for a gallon of regular gas in Arizona is $3.28, compared with the national average of $3.13.
The typical auto insurance premium (combining liability, collision and comprehensive coverage) in Arizona is $1,286.71, while the national average is $1,258.
Health care costs in Arizona
Health insurance costs in Arizona can be a significant part of your budget. The average annual employee contribution for employer-sponsored health plans in Arizona is $1,442, with employers covering the remainder of the $7,981 total premium.
For comparison, the average employee contribution across the U.S. is $1,640 out of a total premium of $8,182.
Utility costs in Arizona
Utility costs can fluctuate depending on usage and climate. The average monthly electric bill in Arizona is $148.44, compared with $136.84 nationally.
Natural gas in Arizona averages $16.38 per thousand cubic feet, while the national average is $12.92.
FAQ
Does Arizona have a high cost of living?
No, Arizona doesn’t have a high cost of living. Most residents benefit from lower-than-average overall expenses, including rent. Health care costs in the state are below the national average, and gasoline costs are near the U.S. average as of publishing, making Arizona affordable for many families.
Is Arizona a good place to live?
Yes, Arizona is a good place to live if you’re seeking new opportunities in a growing state that attracts many newcomers each year. The low cost of living means your paycheck can go further, and the various cities and natural landscapes offer something for everyone.
Is Arizona good for renters?
Yes, Arizona is good for renters. Renters here benefit from high-quality housing, and tenant protections are stronger than in some other states.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
