Tempe, AZ vs. Scottsdale, AZ: Cost of Living Comparison (2025)
Tempe and Scottsdale are two popular Phoenix suburbs just 11 miles apart – but their costs of living differ significantly. In 2025, the average rent for a 2-bedroom apartment in Scottsdale is a whopping $650 higher per month than in Tempe. This article provides a detailed cost of living comparison to help you decide which city fits your lifestyle and budget, whether you’re relocating, buying a home, or renting in the Phoenix metro.
1. Housing Costs
Housing is the biggest factor in the cost of living difference between Tempe and Scottsdale. Typical monthly costs for common housing types:
| Housing Type | Tempe | Scottsdale |
|---|---|---|
| 2BR Apartment Rent | $1,550 | $2,200 |
| 3BR House Mortgage | $1,900 | $2,600 |
🏆 Winner: Tempe. Housing costs are significantly lower across the board in Tempe compared to Scottsdale.
2. Utilities and Energy Costs
Utility costs are fairly similar between the two cities, but Tempe has slightly lower electric and water bills on average:
- Tempe: $180/month (electric, gas, water, trash)
- Scottsdale: $210/month
Both cities see 2-3x higher electric bills in the summer months to run air conditioning. Tempe and Scottsdale both offer “time of use” electric plans with lower off-peak rates.
🏆 Winner: Tempe, but only by about $30/month on average.
3. Groceries and Daily Expenses
Grocery costs are nearly identical in Tempe and Scottsdale. An average family of 4 spends around $1,100/month on groceries in either city. Restaurant prices are about 15% higher in Scottsdale.
🏆 Winner: Tie. Grocery costs are comparable, with Tempe having a slight edge on dining out.
4. Taxes and Fees
Scottsdale has higher property taxes (0.6% vs 0.5% in Tempe) and slightly higher city sales tax (1.75% vs 1.8%). Many Scottsdale neighborhoods also have HOA fees of $200-500/month, while they are less common in Tempe.
🏆 Winner: Tempe, especially for homeowners and those in HOA communities.
5. Cost of Living in Tempe vs Scottsdale: Summary
| Category | Tempe | Scottsdale |
|---|---|---|
| Housing | $1,550 | $2,200 |
| Utilities | $180 | $210 |
| Groceries | $1,100 | $1,100 |
| Transportation | $60 | $60 |
| Taxes | 0.5% | 0.6% |
| Misc Fees | $50 | $250 |
| Estimated Monthly Total | $2,940 | $3,820 |
These figures are based on gross monthly income (pre-tax). A household moving from Scottsdale to Tempe might save $880 per month on living costs.
6. Lifestyle Fit
Scottsdale offers more upscale amenities, resorts, and golf communities, while Tempe provides a vibrant downtown, university energy, and convenient light rail access. Scottsdale gets about 2°F hotter than Tempe in the summer.
7. Frequently Asked Questions
- Is Tempe more affordable than Scottsdale? Yes, Tempe is about 20-25% cheaper than Scottsdale overall.
- Which city has lower rent? Tempe rent is around $650/month less than Scottsdale for a comparable 2BR apartment.
- Where is it cheaper to buy a home? Tempe has lower home prices and property taxes, making it more affordable for buyers. Use our [Monthly Budget Examples for Tempe Residents](/tempe-az/monthly-budget/) to estimate homeownership costs.
8. Conclusion
While Scottsdale and Tempe are neighbors, their costs of living are quite different. Tempe is the clear winner on housing and taxes, making it a more budget-friendly option overall. However, Scottsdale may be worth the premium for those desiring a more upscale lifestyle.
Considering a move to Tempe? Check out our full [Cost of Living in Tempe (2025 Guide)](/tempe-az/cost-overview/) for more details on monthly expenses and typical budgets in the city.