Tempe, Arizona, home to Arizona State University, a thriving tech scene, and year-round sunshine, is one of those cities that manages to feel both lively and laid-back at the same time.
If you’ve been thinking about making Tempe your home, you’re not alone. Students, young professionals, and families alike are drawn to this desert city for its energy, opportunities, and lifestyle.
But before you start browsing apartments or booking Tempe moving services, it’s worth understanding what life here will cost you.
This guide breaks down the real costs of living in Tempe, how they compare to national averages, and what you can expect for your money.
How Tempe’s Cost of Living Stacks Up
Tempe’s cost of living sits just above the national average. While Arizona as a whole is often considered more affordable than states like California or New York, Tempe’s position in the Phoenix metro area means prices have crept up over the last decade.
Overall Cost Index: About 5–10% higher than the U.S. average.
Housing: The biggest factor pushing that index upward.
Utilities & Groceries: Fairly close to the national median, with some seasonal variations.
Transportation: Moderately priced, with both car-friendly roads and a decent public transit network.
For many people, the slightly higher costs are worth the trade-off for Tempe’s convenience, climate, and cultural perks.
Housing
Let’s start with the category that will likely take up the largest chunk of your monthly budget: housing.
Rent Prices
Tempe’s rental market reflects its mix of college students, young professionals, and families. Proximity to ASU, downtown amenities, and the light rail can make certain neighborhoods more expensive.
One-bedroom apartment: $1,300–$1,700/month
Two-bedroom apartment: $1,700–$2,200/month
Luxury or newly renovated units: $2,500 and up
If you’re moving from a smaller Arizona town, these prices might feel steep. But if you’re arriving from Los Angeles or San Francisco, you might see Tempe as a bargain.
Buying a Home
Home prices have risen steadily, thanks to demand from both residents and investors.
Median home price (2025): Around $485,000
Townhomes and condos: $350,000–$450,000
Single-family homes in popular neighborhoods: $500,000+
If buying is in your plans, you’ll want to keep an eye on mortgage rates and property taxes, which in Arizona are relatively low compared to many states.
Utilities
Living in Tempe means embracing the desert climate and yes, that means hot summers. While winters are delightfully mild, June through September will have your air conditioner running almost non-stop.
Average Monthly Utility Costs
For a standard 915 sq. ft. apartment:
Electricity & Cooling: $150–$220/month (higher in summer)
Water, Sewer, Trash: $50–$80/month
Internet: $50–$80/month
One thing to keep in mind: electricity costs will spike in July and August, so budgeting a little extra for summer bills is wise.
Groceries & Dining
Grocery prices in Tempe are close to the national average, but eating out can vary widely depending on your taste and habits.
Groceries
Milk: $3.50/gallon
Bread: $3.25/loaf
Chicken breast: $4.25/lb
Fresh produce: Seasonal farmers markets often have great deals in winter/spring.
Dining Out
Casual lunch: $12–$18 per person
Mid-range dinner: $20–$35 per person
Coffee: $4–$6 for a latte
Tempe’s food scene is diverse, offering everything from Southwestern specialties to international cuisines. You can eat cheaply at student-friendly spots near ASU, or splurge at fine-dining restaurants along Mill Avenue.
Transportation
Tempe is very drivable, but it also benefits from the Valley Metro light rail and bus system, making it one of the more transit-friendly suburbs in the Phoenix area.
Costs to Consider:
Gasoline: $3.80–$4.20/gallon (subject to market changes)
Public transit pass: $64/month for unlimited rides
Car insurance: $1,300–$1,800/year, depending on your driving record
Cycling is also popular here, with bike lanes and paths connecting much of the city.
Healthcare
Healthcare costs in Tempe fall slightly above the national average, but the Phoenix metro area offers a wide range of providers, hospitals, and clinics.
Routine doctor visit: $120–$180 (without insurance)
Dental cleaning: $90–$150
Health insurance premiums: Highly variable, but often $350–$500/month for an individual plan
Education
If you’re moving with kids, you’ll find a mix of public and charter schools, plus private options.
Public schools: Funded through state/local taxes, free to attend
Private schools: $8,000–$15,000/year
Higher education: ASU’s in-state tuition is around $11,000/year; out-of-state is about $31,000/year
Entertainment & Lifestyle
Living in Tempe isn’t just about covering necessities, it's also about enjoying the lifestyle.
Movie ticket: $13–$15
Live music event: $25–$80
ASU Sun Devils football game: $30–$90
Gym membership: $40–$70/month
The city’s festivals, art walks, and community events often have free admission, which helps balance out the pricier nights in the town.
Taxes
Arizona’s state income tax ranges from 2.5% to 4.5%, depending on your income bracket. Sales tax in Tempe is about 8.1%, which applies to most purchases. Property taxes are relatively low compared to many states, a nice perk for homeowners.
Hidden Costs You Might Overlook
When planning your move, remember the little expenses that don’t always show up in cost-of-living charts:
HOA fees (if buying in certain neighborhoods): $50–$250/month
Parking permits in downtown areas
Pet deposits for renters
Summer cooling upgrades (like blackout curtains or better insulation)
Budgeting & Logistics
If you’ve decided Tempe is your next home, your budget should include not just your monthly costs, but also moving expenses.
Hiring Tempe moving services can be a smart choice, especially if you’re relocating from out of state or have bulky furniture. Local movers know the neighborhoods, can navigate apartment complexes with tricky parking, and will save you time (and your back).
When comparing moving quotes, look for:
Transparent pricing with no surprise fees
Positive reviews from past customers
Experience with both residential and commercial moves
Options for packing, storage, and specialty item handling
The average cost for local moves within Tempe runs $400–$800 for a one-bedroom apartment and $800–$1,500 for larger homes. Long-distance moves will, of course, be higher.
Tempe vs. Other Cities
Here’s how Tempe’s cost of living stacks up:
Tempe vs. Phoenix: Slightly more expensive, especially for housing near downtown or ASU.
Tempe vs. Scottsdale: Generally cheaper Scottsdale’s luxury housing drives up costs.
Tempe vs. Los Angeles: Much cheaper in housing, moderately cheaper in groceries, and lower in taxes.
Tempe vs. Austin: Similar in housing, slightly cheaper in utilities.
How to Save Money in Tempe
Live a little farther from campus: Housing drops in price just a few miles away from ASU.
Use the light rail: Cuts down on parking fees and gas.
Shop farmers markets: Seasonal produce can be cheaper and fresher.
Take advantage of free events: Tempe hosts concerts, art festivals, and cultural events year-round.
Is Tempe Worth the Cost?
For many, the answer is a resounding yes. The city’s combination of career opportunities, cultural vibrancy, and outdoor lifestyle makes it appealing even with slightly above-average living costs.
If you budget wisely and plan your move carefully, Tempe can offer a high quality of life without the overwhelming expenses of larger metropolitan areas.
Moving anywhere involves trade-offs. In Tempe’s case, you’re balancing a bit more in housing and summer utility bills against year-round sunshine, a lively community, and access to both urban amenities and outdoor adventures.
If you’ve made the decision to relocate, investing in reliable Tempe moving services can make the process smoother and less stressful.
