Phoenix, AZ vs. Tempe, AZ: Cost of Living Comparison (2025)
This article provides a cost of living comparison: Phoenix vs Tempe. It is perfect for families relocating, professionals choosing between job offers, or anyone comparing the real-life cost of Phoenix vs Tempe in 2025.
1. Housing Costs
Housing is often the biggest factor in cost of living. Here’s how typical housing expenses compare between Phoenix and Tempe:
| Housing Type | Phoenix | Tempe |
|---|---|---|
| Median 2BR Apartment Rent | $1,450 | $1,650 |
| Median 3BR Home Price | $450,000 | $550,000 |
🏆 Winner: Phoenix. Housing costs an estimated 12-18% less in Phoenix compared to Tempe.
2. Utilities and Energy Costs
Utility bills are another major monthly expense. In Phoenix, expect to pay around $180 per month for electricity, gas, water, and trash for a 2BR apartment. Costs are similar in Tempe, averaging $175 monthly.
Both cities experience very hot summers, so budget more for AC from May through September. Many electric companies offer off-peak plans to help manage costs.
🏆 Winner: Tie. Utility costs are comparable between the two cities.
3. Groceries and Daily Expenses
Groceries, dining out, and everyday purchases are slightly cheaper in Phoenix. A couple might spend $500-600 per month on food and incidentals in Phoenix, compared to $550-650 in Tempe.
🏆 Winner: Phoenix. Expect groceries and daily expenses to cost about 5-10% less in Phoenix.
4. Taxes and Fees
Phoenix and Tempe have similar tax rates and city fees:
- Property taxes: 0.5-0.7% of assessed home value
- Sales tax: 8.6% in Phoenix, 8.1% in Tempe
- HOA fees: $200-400/month, often including exterior maintenance and amenities
🏆 Winner: Tie. Taxes and fees are very close between the two cities.
5. Cost Summary Table
| Category | Phoenix | Tempe |
|---|---|---|
| Housing | $1,450 | $1,650 |
| Utilities | $180 | $175 |
| Groceries | $500 | $550 |
| Transportation | $60 | $50 |
| Misc | $300 | $350 |
| Estimated Monthly Total | $2,490 | $2,775 |
These figures reflect estimated monthly expenses for a couple renting a 2BR apartment. All income and cost figures are expressed as gross monthly amounts (pre-tax). Your specific cost of living will vary based on your lifestyle and housing choices. For more examples, see our guide to [Monthly Budget Examples for Phoenix Residents](/phoenix-az/monthly-budget/).
6. Lifestyle Fit
Cost is just one factor in choosing where to live. Also consider:
- Commute: Tempe offers more public transit and walkability. Phoenix is more spread out and car-centric.
- Vibe: Tempe has a younger, college town feel. Phoenix neighborhoods range from urban to quiet suburbs.
- Summer heat: Both cities are very hot from May-Sept. Phoenix averages a few degrees hotter than Tempe.
7. FAQ
Is Phoenix more affordable than Tempe?
Yes, the cost of living is about 10% lower in Phoenix. Housing and daily expenses tend to be cheaper.
Which city has lower rent?
Phoenix has lower rent on average. A typical 2BR apartment costs $1,450/month in Phoenix vs $1,650 in Tempe.
Where is it cheaper to buy a home?
Homes cost less in Phoenix. The median price for a 3BR is about $450,000 in Phoenix, compared to $550,000 in Tempe.
8. Conclusion
Phoenix offers a lower overall cost of living than nearby Tempe, primarily due to cheaper housing costs. A household moving from Tempe to Phoenix might save $400/month on housing alone.
However, Tempe has its own advantages, like walkability, public transit, and a lively college town atmosphere. Ultimately, both cities offer unique perks at different price points.
The right choice depends on your budget, lifestyle, and priorities. Be sure to check out our full [Cost of Living in Phoenix (2025 Guide)](/phoenix-az/cost-overview/) for a more detailed breakdown as you evaluate your options.
Phoenix, AZ vs. Tempe, AZ: Cost of Living Comparison (2025)
This article provides a cost of living comparison: Phoenix vs Tempe. It is perfect for families relocating, professionals choosing between job offers, or anyone comparing the real-life cost of Phoenix vs Tempe in 2025.
1. Housing Costs
Housing is often the biggest factor in cost of living. Here’s how typical housing expenses compare between Phoenix and Tempe:
| Housing Type | Phoenix | Tempe |
|---|---|---|
| Median 2BR Apartment Rent | $1,450 | $1,650 |
| Median 3BR Home Price | $450,000 | $550,000 |
🏆 Winner: Phoenix. Housing costs an estimated 12-18% less in Phoenix compared to Tempe.
2. Utilities and Energy Costs
Utility bills are another major monthly expense. In Phoenix, expect to pay around $180 per month for electricity, gas, water, and trash for a 2BR apartment. Costs are similar in Tempe, averaging $175 monthly.
Both cities experience very hot summers, so budget more for AC from May through September. Many electric companies offer off-peak plans to help manage costs.
🏆 Winner: Tie. Utility costs are comparable between the two cities.
3. Groceries and Daily Expenses
Groceries, dining out, and everyday purchases are slightly cheaper in Phoenix. A couple might spend $500-600 per month on food and incidentals in Phoenix, compared to $550-650 in Tempe.
🏆 Winner: Phoenix. Expect groceries and daily expenses to cost about 5-10% less in Phoenix.
4. Taxes and Fees
Phoenix and Tempe have similar tax rates and city fees:
- Property taxes: 0.5-0.7% of assessed home value
- Sales tax: 8.6% in Phoenix, 8.1% in Tempe
- HOA fees: $200-400/month, often including exterior maintenance and amenities
🏆 Winner: Tie. Taxes and fees are very close between the two cities.
5. Cost Summary Table
| Category | Phoenix | Tempe |
|---|---|---|
| Housing | $1,450 | $1,650 |
| Utilities | $180 | $175 |
| Groceries | $500 | $550 |
| Transportation | $60 | $50 |
| Misc | $300 | $350 |
| Estimated Monthly Total | $2,490 | $2,775 |
These figures reflect estimated monthly expenses for a couple renting a 2BR apartment. All income and cost figures are expressed as gross monthly amounts (pre-tax). Your specific cost of living will vary based on your lifestyle and housing choices. For more examples, see our guide to [Monthly Budget Examples for Phoenix Residents](/phoenix-az/monthly-budget/).
6. Lifestyle Fit
Cost is just one factor in choosing where to live. Also consider:
- Commute: Tempe offers more public transit and walkability. Phoenix is more spread out and car-centric.
- Vibe: Tempe has a younger, college town feel. Phoenix neighborhoods range from urban to quiet suburbs.
- Summer heat: Both cities are very hot from May-Sept. Phoenix averages a few degrees hotter than Tempe.
7. FAQ
Is Phoenix more affordable than Tempe?
Yes, the cost of living is about 10% lower in Phoenix. Housing and daily expenses tend to be cheaper.
Which city has lower rent?
Phoenix has lower rent on average. A typical 2BR apartment costs $1,450/month in Phoenix vs $1,650 in Tempe.
Where is it cheaper to buy a home?
Homes cost less in Phoenix. The median price for a 3BR is about $450,000 in Phoenix, compared to $550,000 in Tempe.
8. Conclusion
Phoenix offers a lower overall cost of living than nearby Tempe, primarily due to cheaper housing costs. A household moving from Tempe to Phoenix might save $400/month on housing alone.
However, Tempe has its own advantages, like walkability, public transit, and a lively college town atmosphere. Ultimately, both cities offer unique perks at different price points.
The right choice depends on your budget, lifestyle, and priorities. Be sure to check out our full [Cost of Living in Phoenix (2025 Guide)](/phoenix-az/cost-overview/) for a more detailed breakdown as you evaluate your options.