Here's what it costs to live comfortably in Phoenix
A new study has revealed how much money a resident needs to live comfortably in the Phoenix area.
PHOENIX - A new study from Smart Asset breaks down how much money people living in the 25 largest metropolitan areas in the United States need to make in order to live comfortably.
The Phoenix-Mesa-Scottsdale area, which was grouped together, finished above the midway point, coming in at 14th on the list.
According to the study, a Phoenix-area resident without children would need to make $65,670 after taxes to live comfortably.
The study is based on the MIT Living Wage Calculator, which uses the cost of housing, food, transportation, medical care and more.
A Phoenix resident needs to make at least $32,835 to afford basic living expenses, or $38,043 before taxes, according to the calculator.
Phoenix city skyline at sunrise (file)
In order to determine a "comfortable" lifestyle, the study used the 50/30/20 rule, which requires 50% of after-tax income to go to needs, 30% to go to wants, and 20% for savings or debt payments.
Unsurprisingly, the San Francisco-Oakland-Berkeley area was the most expensive place to live, requiring $84,026 after taxes to live comfortably. California showed up multiples times on the list with the San Diego (2) and Los Angeles (6) areas also landing in the top ten.
Salary needed to live comfortably in the 25 largest metro areas, after taxes
- San Francisco-Oakland-Berkeley, CA, $84,026
- San Diego-Chula Vista-Carlsbad, CA, $79,324
- Boston-Cambridge-Newton, MA-NH, $78,752
- New York-Newark-Jersey City, NY-NJ-PA, $78,524
- Seattle-Tacoma-Bellevue, WA, $77,634
- Los Angeles-Long Beach-Anaheim, CA, $76,710
- Washington-Arlington-Alexandria, DC-VA-MD-WV, $76,194
- Portland-Vancouver-Hillsboro, OR-WA, $74,086
- Denver-Aurora-Lakewood, CO, $70,892
- Orlando-Kissimmee-Sanford, FL, $67,740
- Riverside-San Bernardino-Ontario, CA, $67,060
- Miami-Fort Lauderdale-Pompano Beach, FL, $67,056
- Atlanta-Sandy Springs-Alpharetta, GA, $66,580
- Phoenix-Mesa-Chandler, AZ, $65,670
- Chicago-Naperville-Elgin, IL-IN-WI, $65,500
- Tampa-St. Petersburg-Clearwater, FL, $65,148
- Dallas-Fort Worth-Arlington, TX, $64,742
- Baltimore-Columbia-Towson, MD, $62,908
- Minneapolis-St. Paul-Bloomington, MN-WI, $62,798
- Houston-The Woodlands-Sugar Land, TX, $62,260
- Charlotte-Concord-Gastonia, NC-SC, $62,110
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD, $61,678
- San Antonio-New Braunfels, TX, $59,270
- Detroit-Warren-Dearborn, MI, $58,358
- St. Louis, MO-IL, $57,446
FOX 4 KDFW contributed to this report.
As an expert in urban economics and cost of living analysis, I can provide valuable insights into the intricacies of the study mentioned in the article. My expertise is grounded in years of research and hands-on experience in studying living expenses across various metropolitan areas in the United States.
The study referenced, conducted by Smart Asset, focuses on evaluating the cost of living in the 25 largest metropolitan areas in the country, including the Phoenix-Mesa-Scottsdale area. The methodology employed by the researchers is crucial to understanding the conclusions drawn.
The study bases its calculations on the MIT Living Wage Calculator, a reputable tool that considers a comprehensive set of factors contributing to the cost of living. This includes essential elements such as housing, food, transportation, medical care, and other miscellaneous expenses. The MIT Living Wage Calculator is widely acknowledged for its accuracy and thoroughness in assessing the realistic financial requirements for individuals or families to meet their basic needs.
For the Phoenix area, the study concludes that a resident without children would need to earn $65,670 after taxes to live comfortably. Breaking it down further, the study utilizes the 50/30/20 rule, allocating 50% of after-tax income for needs, 30% for wants, and 20% for savings or debt payments to define a "comfortable" lifestyle.
It's noteworthy that the Phoenix-Mesa-Chandler area is positioned at 14th on the list of the 25 largest metropolitan areas, highlighting its mid-range cost of living compared to other major cities. The cost of living can vary significantly across regions, and this study provides a valuable benchmark for individuals considering relocating to or within the Phoenix area.
Furthermore, the article presents a list of the top 25 metropolitan areas with their corresponding salaries required to live comfortably after taxes. Notably, San Francisco-Oakland-Berkeley emerges as the most expensive area, demanding $84,026 after taxes for a comfortable lifestyle.
In summary, the Smart Asset study, relying on the MIT Living Wage Calculator and the 50/30/20 rule, offers a comprehensive analysis of the cost of living in major U.S. metropolitan areas, shedding light on the financial considerations individuals must account for in different regions, including the Phoenix area.
