In the state of Arizona, the cost of living is currently 8% higher than the national average. Housing, either bought or rented, is 22% higher than the national average, as well. Healthcare, however, comes in at 4% lower than the national average, according to Rentcafe.
What Is The Average Cost Of Living In Arizona?
The average cost of living in Arizona today is $53,921 per year. The valley of the sun is currently ranked 37th when it comes to which states feature the lowest cost of living, per MERIC’s Cost of Living Index.
With $53,921 per year the average cost of living, let’s take a look at the breakdown for Arizona residents:
- Housing and Utilities: $10,961 per year.
- Healthcare: $7,943 per year.
- Food and Beverage: $3,923 per year.
- Gas and Energy: $1,346 per year.
- Miscellaneous expenses: $29, 749 per year.
How Much Do Homes Cost In Arizona?
According to HomeAdvisor, the average cost to build a home in Arizona is about $291,538. Building a 2,000 sq ft home in Arizona will cost you anywhere from $152,717 to $434,111. If you are interested in building a slightly larger or small home in Arizona, you can figure out the cost yourself by using the cost per sq ft. The average cost per sq ft to build a home in Arizona is $150 per sq ft.
- 2,400 sq ft home: $360,000.
- 2,300 sq ft home: $345,000.
- 2,200 sq ft home: $330,000.
- 2,100 sq ft home: $315,000.
- 2,000 sq ft home: $300,000.
- 1,900 sq ft home: $285,000.
- 1,800 sq ft home: $270,000.
- 1,700 sq ft home: $255,000.
- 1,400 sq ft home: $210,000.
- 1,600 sq ft home: $240,000.
- 1,500 sq ft home: $225,000.
When Is The Best Time To Buy A House In Arizona?
One way to make the home buying process a bit easier is to start the process at the right time. In Arizona, unlike several other markets, housing prices and mortgage rates will vary by the month. For example, Arizona housing prices were at the lowest point in the month of May during 2021. Homes were nearly $40,000 less expensive during that month than any point in the year. November, meanwhile, was the month featuring the highest housing prices. Prices during that month were $40,000 higher than the national average.
In reality, the best time to buy a house truly depends on your specific situation. The first step in the home buying process is getting preapproved by a licensed lender. Don’t hesitate to look around at as many options as possible. Even if you are preapproved, you may still be able to find lower rates that can pay dividends over the life of a loan.
The real estate market is unique in Arizona because of the harsh summers and mild winters. Most potential home buyers will find a better deal in the summer because the area is less desirable during that point in the season. Most parts of the country will hit their lowest housing prices in the winter. In Arizona, though, the exact opposite is true. Also keep in mind that right now Arizona is regarded as a seller’s market, so expect a lot of competition if you are planning to make an offer on a home.
Best Places To Live In Arizona
What are the best cities to live in for Arizonans raising a family? We’re here to highlight some of the best areas across the valley of the sun.
Paradise Valley
Located just outside of Scottsdale, Paradise Valley has recently become far more than a tourist destination. This city now has a population of more than 15,000 residents thanks to its incredible location and world-class real estate.
Surprise
The population of Surprise grew from 30,000 to more than 117,000 from the years 2000-2010. Not only is Surprise listed as one of the safest cities in Arizona, it also great for families. The highly-regarded Arizona Charter Academy is located in Surprise.
Flagstaff
Flagstaff is located in Northern Arizona, which means its geography is extremely different from much of the state. Instead of deserts and cacti, families can enjoy mountains and greenery in Flagstaff. You also won’t have to deal with harsh summer temperatures, and will get to experience some snowfall. Flagstaff’s population is nearing 70,000 currently.
Scottsdale
Located in Maricopa County, Scottsdale’s population continues to soar. Over 250,000 people now call ‘The West’s Most Modern Town’ home. This city is divided into four parts, including North, South, Central and Downtown Scottsdale. Each part has it own unique characteristics. Along with the fine dining and entertainment options, Scottsdale also features the University of Phoenix and Scottsdale Community College campuses.
How Much Money Do You Need To Live In Arizona?
Everyone has their own idea of what it means to live comfortably. While Arizona is not the most affordable state to live in, there are many benefits the state provides that residents enjoy.
As mentioned, Arizona ranks as the 37th most affordable to state to live in. Arizona’s current cost of living is 8% higher than the national average.
Hughes Development Offers Custom Homes in Mesa, Arizona and Surrounding Areas
Hughes Development is a third generation home builder in Arizona and has over fifty years of home building experience! We offer our custom home expertise throughout the Phoenix valley including Mesa, Apache Wells, Mountain Whisper and more areas in Arizona. To speak with our custom home development team call (480)444-6691 or contact us.
