Why It’s So Expensive to Live in Phoenix

[Lily Aldridge]

I don't' think it's just in Phoenix, living anywhere today is expensive as hell.

[Valley Native]

Originally Posted by sder

Are you saying living in CA has no cons? Expensive gas, expensive housing, expensive everything. We have that here now but with none of the benefits like being by the ocean and beaches, hotter than hell summer climate.

Despite Phoenix being more expensive compared to 10 years ago, housing is still more affordable here than almost anywhere in CA. Look at the cost of living index in all the large CA cities: 47% higher than the national average in L.A., 41% higher in San Diego, 71% higher in San Francisco, and 95% higher in San Jose. Phoenix ranks just slightly higher than the national average, which is considered by many Californians to be a bargain in comparison, and that's why a lot of them have moved here. No, Arizona doesn't have beaches (for an obvious reason), but we should have more theme parks & attractions regardless of our cost of living.

[sder]

I guess what I’m saying is that Phoenix has lost its luster in many ways. It used to be a cheap place to live, now it’s not that much different than any other big city. Hot, getting more crowded (especially in recent years), traffic that seems bad no matter what time of day you’re on the road. Now you can add expensive in virtually all facets of life to that list. It’s becoming LA East.

[TurcoLoco]

Originally Posted by sder

I guess what I’m saying is that Phoenix has lost its luster in many ways. It used to be a cheap place to live, now it’s not that much different than any other big city. Hot, getting more crowded (especially in recent years), traffic that seems bad no matter what time of day you’re on the road. Now you can add expensive in virtually all facets of life to that list. It’s becoming LA East.

As Valley Native stated, things have gotten worse and more expensive in but it has gotten worse and more expensive everywhere else. It is not like every other place remained the same and Phoenix/AZ went downhill alone. That is hardly the case.

On the same token, I have lived in the US over 3 decades and things have gotten worse and more expensive over the decades but things have gotten way worse and way more expensive where I came from and in just about every part of the world.

The only thing CA really has left is the weather and beaches (though homeless seemed to be making the best of it!). I didn't wanna go anywhere due to constant traffic. You think it is bad here? Pffft...traffic may occasionally slow down a bit but it is typically very much moving all the time. Over there, it is a parking lot during rush hours! A few months back, coming from IKEA on a Friday afternoon around 4-4:30 heading to West Valley, there was a lil bit where we slowed down to about 45-50 mph for handful of miles and it was fairly normal the rest of the way. Friday afternoon freeway traffic in So Cal? Fuhgedaboudit!

That is one aspect of life, COL is just crazy to the point where most people could not afford to miss a single paycheck. Most everyone is stressed out due the how things are over there. You go to stores, the service people seem rude compared to the ones here. Here, most workers at random stores actually greet you with a smile. Over there they have a very stoic look or at best, they give you a mandatory split second fake smile.

Most can't even truly enjoy the weather or the beaches. I am an avid motorcycle rider so I did enjoy the year-round riding weather but even that goes only so far.

Even people with money and celebrities are moving out of CA so it is clearly not just due to COL but I rather not get into a political debate here. Things are getting worse over there, a lot worse than here.
If you examine all the States that are in trouble (mainly the West Coast), you can determine the common traits between them. I just didn't want to be still living there when thing hit the fan which will probably happen quite a bit sooner than most speculate.

Yes, I am not sugar coating the AZ Summers. I lived here 2 years. Did not care for it and that will continue be the same but if putting up with a 3-4 months of extra crispy days means I will get to be close to family and also enjoy a more relaxed and better quality life, then so be it! Whining about the heat ain't gonna cool you off (I know cuz I tried that before).
In the future, I may buy another place somewhere cooler so I can buzz out of here like snowbirds but only for a few months at the most.
Motorhome is another option.

[swaysway]

Originally Posted by TurcoLoco

Could the simple fact that things have gotten more expensive everywhere be the reason?


It is easy to blame the transplants but the fact is, they do not determine the market value of the properties nor the rent rates. If they were coming up with rent rates on their own with no justification, they wouldn't be able to rent, would they?

When Californians flood the market with ridiculous cash offers because any AZ price seems cheap compared to the overpriced house they just sold back home, you bet they influence market value, and that in turn affects rent rates.

[Valley Native]

Originally Posted by sder

I guess what I’m saying is that Phoenix has lost its luster in many ways. It used to be a cheap place to live, now it’s not that much different than any other big city. Hot, getting more crowded (especially in recent years), traffic that seems bad no matter what time of day you’re on the road. Now you can add expensive in virtually all facets of life to that list. It’s becoming LA East.

The Phoenix area was too cheap for too long, and the result was an influx of transplants who were largely underachievers or retirees on fixed incomes. Most of what they cared about was sunshine & affordability, but not much else. Cheaper prices often attract a cheaper caliber, and that's what we got. It certainly didn't help our reputation ... in fact, it actually had a way of hurting it. A big city behaving like a small town. No "luster" in that regard!

I agree that traffic has gotten worse, and cost of living is out of reach for many. But inflation is a nationwide problem, and even the ones who live in the Midwest, deep South, and Appalachia have seen spikes in prices. Yes, the summers are hot and have gotten even hotter in recent years thanks to the UHI (one of the downsides to growth) Also, the term "L.A. East" to describe Phoenix has been a cliché for a number of years. There are plenty of positives and negatives about most large cities, and Phoenix is certainly no different. Maybe you belong in a place that's smaller, less crowded, cooler, and cheaper.

[TurcoLoco]

Originally Posted by swaysway

When Californians flood the market with ridiculous cash offers because any AZ price seems cheap compared to the overpriced house they just sold back home, you bet they influence market value, and that in turn affects rent rates.

Influence over a period of time, sure but not set a rate themselves on a house they are renting out.
That is just a ridiculous claim. No individual can dictate what the rental market prices could be by themselves. If a comparable house is renting for $2000 in that area and you try to rent yours for $3000, what do you think will happen?

There seems to be some silly resentment and bias towards Californians because non-Californians may feel they were cheated out or something, and least that is the vibe I am getting with just about anyone saying similar stuff.
Like I said, it is silly.

[Voebe]

Originally Posted by My2cents55

Its from all the out of state investors primarily California buying up cheap decerped properties putting some lipstick on them and charging twice the rent. My experience.

From what I've read, much may be finance companies buying up.

[wilberry]

Because Money wants more money and market rate says it is ok to ask for more money . If the market will bear it raise the rent this is called " market rate " .

[mborner]

Originally Posted by wilberry

Because Money wants more money and market rate says it is ok to ask for more money . If the market will bear it raise the rent this is called " market rate " .

Yes, this is the free market. Yes, raise the rent to what the consumer will pay. Next thing you know, only the wealthy will keep paying. As long as vacancies are low, even if it's because the wealthy are the only ones paying those rates, everyone is happy............except for the middle/lower class who can no longer afford shelter, and BOOM, an explosion in homelessness. It's simple; the more living costs go up, the higher the homeless rate will be. If inflation doubles in 10 years but salaries only rise 20%, what do you think will happen?
I'm not against a free market, believe me, I'm invested in it. However, we have a problem to solve, here.