New Construction Homes Blog | Insider Look Into New Homes

Find Out if Phoenix Affordable for Homebuyers

Written by Rob Shapiro | Jan 27, 2025 2:52:44 PM

Due to its growing economy, warm climate, and relatively affordable cost of living, living in Phoenix has become a popular choice for homebuyers. Whether you're a first-time buyer or are moving to Phoenix, the city offers a variety of living and investment opportunities. 

This article will explore whether Phoenix is affordable for homebuyers by examining housing, food, and transportation costs. It will also highlight the best neighborhoods for homebuyers, fun things to do in Phoenix, and other factors that can help you decide if this city is within your budget.

Phoenix Housing Market Overview

The Phoenix housing market has been thriving in recent years, with consistent increases in home values and new construction homes. As of 2024, the median home price is approximately $452,000, offering a more affordable option than cities like New York or Los Angeles.  

For buyers shopping for new construction homes in Phoenix, AZ, neighborhoods like North Gateway, Desert Ridge, and Ahwatukee offer modern and pristine developments for various budgets. Moreover, the city's expansion has produced opportunities in adjacent suburbs like Gilbert and Chandler, which present affordable housing options. 

One key factor driving demand in the Phoenix housing market is its relative affordability. While home prices in Phoenix have risen, they remain more accessible compared to other rapidly growing cities across the U.S. 

Despite rising prices, moving to Phoenix is still affordable for many homebuyers looking to live in the Southwest. However, potential buyers should track market trends and evaluate the timing of their investments.

 

 

The Cost of Living in Phoenix 

The cost of living in Phoenix is an important factor for homebuyers looking to relocate to the area. 

While housing is the largest expense, a few other vital costs, such as food, transportation, and health care, must be factored into the decision. 

Housing

The median home sale price in Phoenix is $447,250, making it more affordable than many other major U.S. cities like Denver, Seattle and Boston. 

New developments like North Gateway and Desert Ridge also offer budget-friendly options for new homebuyers, while suburban areas like Chandler provide more affordable homes.

Food & Groceries

On average, the monthly recommended minimum amount of money for food per person is $365.46. Dining out in Phoenix varies depending on the neighborhood and restaurant, but you'll find a range of affordable to high-end restaurants, especially in places like Downtown Phoenix and Scottsdale.

Healthcare

The cost of healthcare in Phoenix is marginally above the national average, with a general doctor’s visit costing between $94 to $144

The cost of living in Phoenix is lower than in many other major U.S. cities, but homebuyers should carefully evaluate their needs and financial situation before determining if their budget is appropriate. 

Best Neighborhoods in Phoenix

Homebuyers have many options when choosing the best neighborhoods in Phoenix. Whether you are searching for luxury living, family-friendly suburbs, or communities near the city center, Phoenix has a neighborhood that should suit your lifestyle. 

Here are some of the best neighborhoods in Phoenix to consider:

  • Paradise Valley

Paradise Valley is known for its upscale, luxurious homes, expansive lots, and breathtaking views of Camelback Mountain. 

This neighborhood is for people seeking a close-knit community. It also has amenities like golf courses, luxury resorts, and fantastic dining options.

Median Home Price: $3.2M

  • Arcadia

Arcadia offers a unique blend of historic charm and modern living. The area includes tree-lined streets and proximity to Downtown Phoenix and Scottsdale, making it highly desirable for professionals and families.

Median Home Price: $1.23M

  • Gilbert and Chandler

Gilbert and Chandler are two rapidly growing suburbs in the southeastern part of the metropolitan area, perfect for families. Both areas offer affordable new construction homes, well-rated schools, and an abundance of parks and recreational activities. With excellent job opportunities in the tech and healthcare sectors, these areas are a top choice for those seeking a balanced suburban lifestyle.

  • Median Home Price (Gilbert): $576,000

  • Median Home Price (Chandler): $525,000

  • North Gateway

North Gateway, located in the northern part of Phoenix, is known for its new construction homes, spacious lots, and access to outdoor recreational activities. This area appeals to families and outdoor enthusiasts who appreciate the nearby hiking trails, parks, and the beauty of the Sonoran Desert. 

Median Home Price: $640,926

  • Ahwatukee Foothills

Ahwatukee Foothills is known for its serene environment and outdoor activities. Its mix of new and established homes attracts families and retirees alike.

  • Median Home Price: $457,500

Each neighborhood provides unique benefits, making them suitable for different lifestyles and needs. When deciding which is the best neighborhood in Phoenix for you, it's important to weigh factors like proximity to schools, healthcare, work, and recreational activities to ensure the neighborhood matches your preferences.

 

 

Fun Things to Do in Phoenix

In addition to affordability and housing preferences, Phoenix offers an exciting lifestyle full of entertainment, dining, and cultural activities. Homebuyers who relish various outdoor expeditions and city living will find abundant things to do in Phoenix.

  • Dining: Phoenix is home to an eclectic culinary scene. The best places to eat in Phoenix range from local favorites to high-end restaurants. Areas like Downton Phoenix, Arcadia, and Scottsdale offer everything from Southwestern cuisine to international dishes. Popular spots include Pizzeria Bianco, known for its award-winning pizzas, and The Mission, for classy Mexican cuisine. 
  • Outdoor Activities: For people who appreciate the outdoors, there are many fun things to do in Phoenix. From hiking in Camelback Mountain to exploring the Desert Botanical Gardens, nature lovers will find no scarcity of activities. Phoenix’s sunny weather also makes golfing possible year-round, with many world-class golf courses throughout the area. 
  • Arts & Culture: Phoenix has several museums and cultural centers, such as the Phoenix Art Museum and Heard Museum. Downtown Phoenix also hosts assorted music festivals, art walks, and theater productions. 
  • The entertainment and lifestyle options in Phoenix add to the city’s overall appeal. Whether you’re a foodie, outdoor enthusiast, or cultural explorer, there’s something for everyone.


Phoenix’s Housing Market vs. Other Cities

Phoenix’s housing market is more affordable than other major cities in the U.S. While home prices in Phoenix have surged in recent years, it remains a relatively affordable place to live.

  • Phoenix vs. Los Angeles: Los Angeles has a median home price of $950,000, nearly twice as expensive as Phoenix.
  • Phoenix vs. San Francisco: The median home price in San Francisco is $1.4 million, higher than in Phoenix, driven by limited inventory and the appeal of the tech sector and its growth.
  • Phoenix vs. Tucson: Tucson offers a more budget-friendly option, with a median home price of $331,236 in 2024. However, Tucson lacks the same economic development and job opportunities as Phoenix.
  • Phoenix vs. Austin: Austin has a median home price of $525,797. While Austin offers similar amenities, the cost of living there, including housing, is higher than in Phoenix.

Overall, buying a home in Phoenix is attractive for homebuyers seeking certain lifestyles and investment opportunities.

 

 

Living in Phoenix: Job Market and Income Comparison

Phoenix has a dynamic job market with competitive employment opportunities in sectors such as technology, healthcare, real estate, and manufacturing. 

As of 2024, the unemployment rate in Phoenix is 3.9%, slightly below the national average of 4.1% (U.S. Bureau of Labor Statistics). The city’s job growth is projected to reach 38.5% over the next decade, surpassing cities like Los Angeles and San Francisco, where growth is expected to hover around 33% (GPEC).

The median household income in Phoenix stands at $72,500, comparable to other thriving metro areas like Dallas but lower than San Francisco’s $121,000. 

Phoenix’s Cost of Living vs. Other Cities

  • Cost of Living: Phoenix offers a more affordable lifestyle than other major U.S. cities, making it an attractive destination for homebuyers. While the cost of living in Phoenix is 4% more than the national average, it remains lower than cities like Los Angeles (49% higher than the national average) and San Francisco (79% higher than the national average)
  • Median Home Prices: The median home price in Phoenix is around $45,000, compared to $620,000 in Denver and $800,000 in Seattle.
  • Property Taxes: The average effective tax rate in Arizona is 0.51%, well below the national average of 0.99%, offering savings to homeowners.


Is Phoenix Affordable?

Phoenix is ideal for homebuyers because of its affordability, lifestyle, and growth opportunities. Whether you want luxury living in areas like Paradise Valley or more affordable options in Gilbert and Chandler, Phoenix’s diverse housing market has something for everyone. 

With its ever-growing new construction home market, sunny weather, and diverse entertainment options, Phoenix is a city where you can enjoy a high quality of life without breaking the bank. If you’re considering moving to the area, now is a great time to explore the best neighborhoods in Phoenix and take advantage of the growing market. 

 

 

FAQs

What is the cost of living in Phoenix?

The cost of living in Phoenix is generally lower than in other major U.S. cities, with housing costs being one of the most significant factors. The median listing home price is approximately $450k, and additional expenses like groceries and transportation are slightly below the national average. 

Is Phoenix an excellent place to buy a home?

Phoenix is a great place to buy a home due to its growing housing market and affordability. New construction homes in Phoenix are being built at a good rate and it’s known for its family-friendly neighborhoods. 

What are the best neighborhoods in Phoenix for homebuyers? 

Some of the best neighborhoods in Phoenix include Paradise Valley, Arcadia, Gilbert, Chandler, and North Gateway. These areas offer a range of options, from luxury homes to more affordable new-construction homes. 

How much does transportation cost in Phoenix?

Gas prices are around $3.50 per gallon, and a monthly public transit pass costs $64.