This is the biggest question anyone asks when determining where they are going to live. Living comfortably can look different to many people as well. It depends on how you determine your quality of life and standards of living. For the purposes of looking specifically in Phoenix, we are going to look at averages.
How Much Money Do You Need to Live Comfortably Phoenix?
The median home cost in Arizona is $249,300 and the median home cost in Phoenix is $239,00. So Phoenix is about $10,000 less than Arizona’s state average. The average rent for a one-bedroom apartment is about $1,600 a month and therefore you would want to earn over $4,000 a month before taxes. The average annual salary in Phoenix is $59,794 which is $8,000 above the United States average. When looking at the cost of living index, Phoenix ranks 103.7 which means it is more expensive than the U.S. average. The cost of living index shows anything above 100 as more expensive and anything below as less expensive.
In order to determine how much money you need to live comfortably, you need to decide how you use your finances. Using the 50/30/20 budget rule, meaning you spend 50% on necessities, 30% on fun, and 20% on savings, we find that Phoenix ranks in the bottom half.
The city’s median income and ideal wage you need to earn to be a homeowner has a gap of about $35,000. If you are a renter it is about the same gap as well. Don’t let that alarm you though, this gap issue is happening in just about every city in the U.S. With all of this information it is determined that you need to earn about $46,000 a year to live comfortably in Phoenix. This is for a single person, so if you are married or with a family, this will require double that.
To some, this would be far less than enough to live comfortably, especially with the way society portrays ease and efficiency now. If you are strongly considering a move here then you also need to factor in moving costs before getting settled. Generally moving costs range from $5,000 to $10,000, depending on your distance. These basic numbers give you a baseline but you need to consider all of the extra things you pay for within your family that may be important to you.
Not only do you want to consider what you need to make but you want to look at the trajectory of the city. Phoenix is consistently rating in the top ten fastest-growing cities in the country. It is still considered relatively affordable compared to other larger cities and it does have a more rural feel for those looking to escape the hustle and bustle.
Are you looking for more help navigating the real estate market during these confusing times? Check out more informative articles here on our blog. For more information on Peoria real estate, Paradise Valley homes for sale, Phoenix real estate market and Glendale AZ property, contact my office at any time.
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