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Tempe, Arizona

USA · Comprehensive city data and intelligence

58
Overall Score

Tempe, Arizona, is a vibrant and dynamic city located in the heart of the Phoenix metropolitan area, renowned for its youthful energy and rich cultural history. Originally established along the Salt River, the city evolved from a historical trade crossing into a bustling urban hub anchored by the sprawling main campus of Arizona State University. People are drawn to Tempe for its unique blend of Southwestern desert charm, progressive urban planning, and a thriving commercial sector that attracts students, young professionals, and families alike.

Characterized by a bustling downtown centered around Mill Avenue and Tempe Town Lake, the city offers an exceptional urban lifestyle uncommon in many other parts of the desert Southwest. The presence of Arizona State University infuses the community with a continuous stream of innovation, diverse cultural events, and an active arts scene. Whether strolling along the lakefront or exploring the historic neighborhoods, residents find a welcoming environment that balances high-density convenience with relaxed desert living.

About Arizona

Arizona offers a diverse landscape, from low-elevation deserts to mountainous regions, and is known for its abundant sunshine, averaging around 300 sunny days per year. The state's economy is moderately diverse, with major industries including manufacturing (especially aerospace, defense, transportation, and electronics), healthcare, real estate, tourism, technology, bioscience, agriculture (cotton, citrus), and mining (copper). While the cost of living in Arizona is generally higher than the national average, particularly for housing, the state's mild winters and opportunities for outdoor activities contribute to an appealing lifestyle for many.

190,571
Population
$76K
Avg Salary
105
Cost Index
57.8
Quality Score
How this 58/100 was calculated five components, with every reading behind them
Component Readings used Points Weight Contributes
Safety Safety score: 68 / 100 68.0 30% 20.4
Affordability Cost of living index (100 = national baseline): 105.0 37.5 25% 9.4
Economy & jobs Median household income: $79,663 Income needed to live here: $62,000 Unemployment rate: 4.6% 64.1 20% 12.8
Growth Population growth rate: 0.53% Job growth rate: 1.9% 48.1 15% 7.2
Business climate assessment Business climate assessment: 80 / 100 80.0 10% 8.0
Overall score 57.8

Provenance. These figures were produced by the research pass recorded as Tier 2 (reasoned) (q=67, partial — below threshold), last refreshed 11 October 2026. They are researched estimates drawn from public sources, not a licensed data feed.

Each component is scored against fixed published endpoints, so this number is comparable with any other city and does not move as the dataset grows. Scoring framework 2026.10 — full methodology, weights and accepted ranges.

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Quality Scores

Business
80
Livability
79
Affordability
62
Growth
81

Cost of Living

The cost of living in Tempe sits slightly above the national average, primarily driven by strong housing demand, proximity to Phoenix, and its desirability as a high-tech and educational destination. While everyday expenses such as groceries and transportation remain reasonably close to national baselines, housing costs—both for renting and purchasing real estate—play a significant role in elevating overall expenditures for residents. Utility costs, particularly electricity usage during peak summer months, also require careful household budgeting.

Downward pressure on certain routine costs comes from a robust local economy and competitive retail markets across the East Valley. Public transit options, including the Valley Metro light rail and local circulator buses, help offset car dependency and commuting expenses for students and professionals working near urban centers. Ultimately, while living in Tempe commands a premium compared to smaller Arizona towns, its robust job opportunities and vibrant standard of living offer strong value relative to major coastal metros.

Average Rent
$1,939/mo
Groceries
$440/mo
Transport
$115/mo
Utilities
$195/mo
Healthcare
$240/mo
Gym membership (monthly)
$50.00
Cinema ticket
$15.00
Restaurant meal (mid-range)
$25.00
Monthly groceries
$410.00
Doctor visit (without insurance)
$160.00

Salary Insights

Tempe's economy is exceptionally robust and diversified, serving as a major commercial powerhouse within Maricopa County. Key employment sectors include educational services through Arizona State University, retail trade, healthcare and social assistance, professional and business services, and financial activities. The city has also cultivated a thriving technology and startup ecosystem, drawing corporate headquarters and high-tech firms to its modern office corridors near downtown and the waterfront.

Major employers range from large financial institutions and technology enterprises to healthcare providers and advanced manufacturing firms. The remote and hybrid work scene is well-supported by numerous coworking spaces, high-speed fiber infrastructure, and a talent pipeline fed directly by local graduates. Economic momentum remains high, backed by continuous investments in municipal infrastructure and business-friendly policies that encourage entrepreneurship and corporate relocation.

The average salary in Tempe is $76,000 per year. You would need approximately $62,000 to live comfortably.

Top Industries

Retail Trade +1.20% Financial Activities +1.50% Professional & Business Services +1.80% Health Care & Social Assistance +2.10% Educational Services +0.40%

Climate

🌡️
76°F
Avg Temp
☀️
107°F
Summer High
❄️
48°F
Winter Low
🌧️
15.40"
Annual Rain
💧
31.00%
Humidity
🌤️
327
Sunny Days

Transport

Getting around Tempe is facilitated by a multi-modal transportation network that integrates roads, light rail, local buses, and extensive bike infrastructure. The Valley Metro Light Rail connects Tempe directly to downtown Phoenix, Mesa, and Phoenix Sky Harbor International Airport, making regional travel seamless without a car. Free local Orbit bus circulators service major neighborhoods and campus routes efficiently.

Walkability is high in core districts like Downtown and the campus area, which boast high Walk Scores, while suburban areas lean more toward standard car dependency. The city is exceptionally bike-friendly, featuring dedicated bike lanes and high Bike Scores that encourage cycling as a viable year-round commuter choice. Major freeways, including US-60 and Loop 202, provide fast driving access across the entire Valley.

21 min
Avg Commute
48.00/10
Transit Score
54.00/10
Walkability
Medium
Car Dependency

Pros & Cons

Advantages
Median property value in Tempe stands at $455,400 with steady regional appreciation per U.S. Census data.
Exceptional multi-modal transit featuring the Valley Metro Light Rail and free Orbit circulators connecting directly to Sky Harbor Airport.
Abundant outdoor recreation centered around Tempe Town Lake, Hayden Butte, and over 320 sunny days per year.
Thriving high-tech and educational economy driven by Arizona State University and major corporate employers.
Vibrant dining, arts, and cultural scene anchored by Downtown Tempe and Mill Avenue establishments.
Drawbacks
Intense summer heat with average daily highs exceeding 106°F requires high seasonal cooling expenditures.
Average monthly rent of $1,939 creates affordability challenges for lower-income renters and entry-level workers.
Property crime rates, particularly bicycle and vehicle thefts, are elevated around high-density student and entertainment zones.
Housing inventory for single-family homes is competitive, leading to fast-paced bidding and limited starter inventory.
Traffic congestion during peak university semesters and major stadium events impacts primary arterial corridors.

Questions about Tempe

What people ask about living in and moving to Tempe, Arizona.

Gathering the most common questions about Tempe…

Frequently Asked Questions

Urblytica benchmarks its Cost of Living Index against a United States national average baseline of 100. A score of 115 means a city is approximately 15% more expensive than the national average, while a score of 85 indicates it is 15% more affordable. This composite calculation is weighted across six primary expenditure categories: housing, utilities, grocery items, transportation, healthcare, and miscellaneous goods.

Urblytica aggregates housing data from multiple authoritative sources, including Multiple Listing Service (MLS) feeds, municipal property tax registries, the U.S. Census Bureau’s American Community Survey (ACS), and verified historical deed transactions. This multi-tier aggregation ensures precision in tracking median home values and rental rates.

A municipality must meet minimum data-density thresholds—including consistent reporting population samples from the U.S. Census and active residential or commercial real estate transaction feeds—to ensure statistical significance before a complete scoring profile is published.

When primary agencies (such as the Bureau of Labor Statistics or U.S. Census Bureau) issue historical data revisions or benchmark corrections, Urblytica's data pipeline automatically re-indexes affected historical archives to maintain longitudinal trend accuracy.

U.S. affordability calculations incorporate federal income tax brackets, state-specific income tax rates, and local municipal tax variations to evaluate the true net tax drag on median household earnings across different states and cities.

Local county and municipal property tax millage rates are factored directly into the housing component of the cost-of-living index to reflect recurring annual tax burdens for homeowners.

The platform aggregates state sales taxes alongside county and city surtaxes to measure consumer basket purchasing power parity accurately across different retail jurisdictions.

Utility calculations apply regional seasonal consumption weightings, incorporating high summer air conditioning loads in southern states and heavy winter heating demands in northern states.

The index tracks average out-of-pocket healthcare expenses, routine outpatient visit costs, and regional health insurance premium benchmarks published by federal health agencies.

Educational metrics aggregate state standardized testing benchmarks, student-to-teacher ratios, high school graduation rates, and per-pupil expenditure data published by state departments of education.

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