Renting vs. Owning in Phoenix: What You’ll Pay
When comparing the cost of living in an apartment vs house in Phoenix, the biggest factor is usually the rent or mortgage payment. According to Zillow, the average rent for a 2-bedroom apartment in Phoenix is currently $1,695 per month. For a 3-bedroom single-family house, the average rent jumps to $2,400 monthly. The average rent for a 3BR house in Phoenix is $2,400/month, which is over $700 more than a typical 2BR apartment.
Of course, buying a home involves additional costs like a down payment, property taxes, and repairs. But even comparing just the monthly payments, houses are significantly pricier than apartments in Phoenix. Zillow shows the median home value in Phoenix is $448,248. With a standard 30-year mortgage at 6.5% interest and 20% down, the monthly principal and interest payment would be around $2,270 (not including taxes and insurance). So whether renting or buying, expect to pay more for a single-family house.
Table: Cost Comparison – Apartment vs House
Here’s a side-by-side breakdown of common monthly costs in Phoenix:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage | $1,695 | $2,400 |
| Electricity | $120 | $180 |
| Water/Sewer | $50 | $80 |
| Internet | $65 | $65 |
| Renters/Home Insurance | $20 | $120 |
| Maintenance/Repairs | $0 | $200 |
| HOA Fees | $250 | $50 |
| Total | $2,200 | $3,095 |
Estimates are for mid-range units with typical usage.
As the table shows, the total monthly cost to live in a 3-bedroom Phoenix house is nearly $900 higher than renting a 2-bedroom apartment, assuming average prices. The gap is mainly due to the higher rent, insurance, and maintenance expenses for a single-family home.
Utility and Upkeep Differences
In addition to the base rent or mortgage, houses often have higher utility and upkeep costs than apartments:
- Houses have more square footage to heat and cool, resulting in higher electricity and gas bills. The average electricity bill for a Phoenix apartment is $120/month vs $180/month for a house.
- Watering a yard or garden can add $30-50/month compared to apartments with no outdoor space. However, in Phoenix, many homes use desert landscaping or swamp coolers which can reduce water usage.
- Houses have more appliances, fixtures and systems that can break. Replacing an A/C unit or water heater costs thousands. Homeowners should budget at least 1% of the home value annually for repairs and maintenance.
- Apartments often include trash service in the rent. Homeowners have to pay for private garbage collection, around $30/month.
Lifestyle Tradeoffs
Aside from hard costs, there are intangible lifestyle factors to consider with houses vs apartments. Houses provide more privacy, space and autonomy. They’re better for kids, pets and entertaining. Many Phoenix residents choose houses for the extra bedrooms, yard access, and ability to personalize the property.
However, apartments offer perks like professionally maintained amenities, on-site gyms and pools, included utilities, and stronger community. They also require less upkeep, with no yardwork or repairs to worry about. Newer apartment complexes in Phoenix often have smart home features, co-working areas, and walkable locations. Many Phoenix residents choose apartments for the convenience, amenities and prime locations, while families prefer houses for the space and privacy.
Which Is Cheaper Long Term in Phoenix?
While renting is cheaper month-to-month, owning a home can be better financially long-term. Even with higher upfront costs, a house can build equity over time as you pay down the mortgage and the property appreciates in value.
For example, say you buy a $450K house in Phoenix with 20% down and a 30-year mortgage at 6.5% interest. The monthly payment is $2,270. After 5 years, you will have paid down $41K in principal and gained $135K in appreciation (assuming 5% annual growth). Subtracting the down payment, closing costs and maintenance, you’d be ahead by $35K compared to renting.
Of course, this scenario assumes home values continue rising steadily. If prices fall, renting could come out ahead. Ultimately, the decision depends on your long-term plans, lifestyle and financial goals. Use this monthly budget calculator for Phoenix to compare your options.
FAQs About Housing Costs in Phoenix
How much more does a house cost per month?
In Phoenix, a typical 3BR house costs $895 more per month than a 2BR apartment, including rent, utilities, insurance and maintenance. Houses have 50% higher rent on average.
Do houses come with higher utility bills?
Yes, houses in Phoenix usually have electric bills around $180/month, compared to $120/month for apartments. Houses also have higher water bills from irrigation. Learn more about Phoenix utility costs and fees here.
Are apartments cheaper even with pet fees?
Most apartments are still cheaper than houses even factoring in pet rent and deposits. The average pet fee is $35/month. With $400 cheaper rent on average, apartments come out ahead for pet owners.
Making the Right Housing Choice in Phoenix
Both renting an apartment and owning a house have their advantages in Phoenix. It ultimately depends on your budget, family size, and priorities. Apartments offer flexibility, convenience and included amenities at a lower monthly cost. Houses provide more space, freedom and long-term financial benefits, but with added upkeep and expenses.
Take time to assess your needs and run the numbers using a Phoenix cost of living calculator. Factor in your income, lifestyle and future plans. Whether you opt for an apartment or house, you can find a great place to call home in Phoenix with the right research and budget.
Renting vs. Owning in Phoenix: What You’ll Pay
When comparing the cost of living in an apartment vs house in Phoenix, the biggest factor is usually the rent or mortgage payment. According to Zillow, the average rent for a 2-bedroom apartment in Phoenix is currently $1,695 per month. For a 3-bedroom single-family house, the average rent jumps to $2,400 monthly. The average rent for a 3BR house in Phoenix is $2,400/month, which is over $700 more than a typical 2BR apartment.
Of course, buying a home involves additional costs like a down payment, property taxes, and repairs. But even comparing just the monthly payments, houses are significantly pricier than apartments in Phoenix. Zillow shows the median home value in Phoenix is $448,248. With a standard 30-year mortgage at 6.5% interest and 20% down, the monthly principal and interest payment would be around $2,270 (not including taxes and insurance). So whether renting or buying, expect to pay more for a single-family house.
Table: Cost Comparison – Apartment vs House
Here’s a side-by-side breakdown of common monthly costs in Phoenix:
| Expense | 2BR Apartment | 3BR House |
|---|---|---|
| Rent/Mortgage | $1,695 | $2,400 |
| Electricity | $120 | $180 |
| Water/Sewer | $50 | $80 |
| Internet | $65 | $65 |
| Renters/Home Insurance | $20 | $120 |
| Maintenance/Repairs | $0 | $200 |
| HOA Fees | $250 | $50 |
| Total | $2,200 | $3,095 |
Estimates are for mid-range units with typical usage.
As the table shows, the total monthly cost to live in a 3-bedroom Phoenix house is nearly $900 higher than renting a 2-bedroom apartment, assuming average prices. The gap is mainly due to the higher rent, insurance, and maintenance expenses for a single-family home.
Utility and Upkeep Differences
In addition to the base rent or mortgage, houses often have higher utility and upkeep costs than apartments:
- Houses have more square footage to heat and cool, resulting in higher electricity and gas bills. The average electricity bill for a Phoenix apartment is $120/month vs $180/month for a house.
- Watering a yard or garden can add $30-50/month compared to apartments with no outdoor space. However, in Phoenix, many homes use desert landscaping or swamp coolers which can reduce water usage.
- Houses have more appliances, fixtures and systems that can break. Replacing an A/C unit or water heater costs thousands. Homeowners should budget at least 1% of the home value annually for repairs and maintenance.
- Apartments often include trash service in the rent. Homeowners have to pay for private garbage collection, around $30/month.
Lifestyle Tradeoffs
Aside from hard costs, there are intangible lifestyle factors to consider with houses vs apartments. Houses provide more privacy, space and autonomy. They’re better for kids, pets and entertaining. Many Phoenix residents choose houses for the extra bedrooms, yard access, and ability to personalize the property.
However, apartments offer perks like professionally maintained amenities, on-site gyms and pools, included utilities, and stronger community. They also require less upkeep, with no yardwork or repairs to worry about. Newer apartment complexes in Phoenix often have smart home features, co-working areas, and walkable locations. Many Phoenix residents choose apartments for the convenience, amenities and prime locations, while families prefer houses for the space and privacy.
Which Is Cheaper Long Term in Phoenix?
While renting is cheaper month-to-month, owning a home can be better financially long-term. Even with higher upfront costs, a house can build equity over time as you pay down the mortgage and the property appreciates in value.
For example, say you buy a $450K house in Phoenix with 20% down and a 30-year mortgage at 6.5% interest. The monthly payment is $2,270. After 5 years, you will have paid down $41K in principal and gained $135K in appreciation (assuming 5% annual growth). Subtracting the down payment, closing costs and maintenance, you’d be ahead by $35K compared to renting.
Of course, this scenario assumes home values continue rising steadily. If prices fall, renting could come out ahead. Ultimately, the decision depends on your long-term plans, lifestyle and financial goals. Use this monthly budget calculator for Phoenix to compare your options.
FAQs About Housing Costs in Phoenix
How much more does a house cost per month?
In Phoenix, a typical 3BR house costs $895 more per month than a 2BR apartment, including rent, utilities, insurance and maintenance. Houses have 50% higher rent on average.
Do houses come with higher utility bills?
Yes, houses in Phoenix usually have electric bills around $180/month, compared to $120/month for apartments. Houses also have higher water bills from irrigation. Learn more about Phoenix utility costs and fees here.
Are apartments cheaper even with pet fees?
Most apartments are still cheaper than houses even factoring in pet rent and deposits. The average pet fee is $35/month. With $400 cheaper rent on average, apartments come out ahead for pet owners.
Making the Right Housing Choice in Phoenix
Both renting an apartment and owning a house have their advantages in Phoenix. It ultimately depends on your budget, family size, and priorities. Apartments offer flexibility, convenience and included amenities at a lower monthly cost. Houses provide more space, freedom and long-term financial benefits, but with added upkeep and expenses.
Take time to assess your needs and run the numbers using a Phoenix cost of living calculator. Factor in your income, lifestyle and future plans. Whether you opt for an apartment or house, you can find a great place to call home in Phoenix with the right research and budget.