PHOENIX — The Phoenix area is the third fastest-growing large U.S. metro with a below-average cost of living, according to a new report by Roofstock Inc.
The cost of living in metro Phoenix is 1.3% below the national average, the report says. Between 2017 and 2020, the population in Phoenix increased by 6.3% — at a time when the U.S. population grew by 1.3% — ranking Phoenix as the city with the third most population growth among all affordable large U.S. metros.
Steven Hensley, advisory manager for Zonda housing market research firm, said Phoenix generally has been considered an affordable MSA even with a large population, and this still rings true after significant price appreciation since May of last year.
"Population growth in the Phoenix MSA can largely be attributed to its affordability for local residents as well as residents in other major MSAs around the country," he said.
About 54% of local Phoenix-area households can afford the median-priced home in the region, according to Neustar, public record data and analysis by Zonda.