Atlanta vs. Phoenix: Which City Offers the Best Cost of Living in 2025?
Thinking of Relocating in 2025? Atlanta vs. Phoenix Comparison
You’re not alone—millions of Americans are on the move, seeking better lifestyles, lower costs, and new opportunities in fast-growing cities. Two standout contenders leading the way are Atlanta, Georgia, and Phoenix, Arizona—both booming with job growth, lifestyle perks, and serious zip-code specific differences in affordability. But which one actually gives you more lifestyle for less?
If you’re deciding where to start fresh—whether you’re a remote worker, growing family, or just in search of sunshine and space—this deep-dive cost comparison will give you the dollars-and-cents clarity you need.
Table of Contents
- Why Atlanta and Phoenix Are Trending in 2025
- Cost of Living Snapshot: Atlanta vs. Phoenix
- Housing Costs Breakdown
- Groceries & Dining Costs
- Utilities and Internet Comparison
- Transportation Expenses
- Healthcare & Insurance
- Taxes and Local Fees
- Lifestyle and Daily Living Expenses
- What You Can Get for $3,000/Month in Each City
- Summary: Which Offers the Better Value?
- Explore Zip Code Data on CompaniesByZipcode.com
- What’s Next: San Diego vs. Miami Showdown
1. Why Atlanta and Phoenix Are Trending in 2025
Atlanta, GA has long been considered the business hub of the Southeast. It’s now gaining major attention for its growing remote-friendly workforce, diverse economy, and relative affordability compared to other major cities like New York or San Francisco. With Apple, Google, and Microsoft expanding operations in the metro area, it’s a hotspot for tech and professional services.
Phoenix, AZ, on the other hand, continues to dominate migration patterns due to its excellent year-round weather, rapidly expanding suburbs, and lower overall income taxation. Retirees, digital nomads, and young professionals alike are flocking to the Valley of the Sun for both affordability and outdoor lifestyle. It’s second only to Austin in terms of in-bound moves according to the latest U-Haul data.
2. Cost of Living Snapshot: Atlanta vs. Phoenix (2025 Averages)
| Category | Atlanta, GA (Single / Family of 4) | Phoenix, AZ (Single / Family of 4) |
|---|---|---|
| Housing (rent/month) | $1,700 / $2,600 | $1,550 / $2,400 |
| Groceries & Dining | $460 / $1,200 | $480 / $1,250 |
| Utilities + Internet | $220 / $270 | $180 / $230 |
| Transportation | $150 / $450 | $220 / $500 |
| Healthcare | $350 / $950 | $320 / $890 |
| Taxes (state & local) | ~5.75% state income tax | ~2.5% effective income tax |
| Lifestyle & Childcare | $300 / $1,400 | $290 / $1,300 |
| Total Monthly Spend | $3,180 / $7,870 | $3,040 / $7,570 |
Winner on Affordability: Slight edge to Phoenix for singles; families find marginal relief in Phoenix’s lower tax and utility burden.
3. Housing Costs Breakdown
Both cities have seen explosive growth in real estate, but supply and sprawl keep prices from skyrocketing.
Atlanta Housing (2025 Estimates):
- Median Home Price: $426,000
- 1-Bedroom Apartment Rental (City): $1,700/month
- 3-Bedroom Home Rental (Suburbs): $2,600/month
Phoenix Housing (2025 Estimates):
- Median Home Price: $409,000
- 1-Bedroom Apartment Rental (City): $1,550/month
- 3-Bedroom Home Rental (Suburbs): $2,400/month
Verdict: While both cities offer solid homeownership potential, Phoenix edges out for renters, while Atlanta remains attractive for buyers entering the market.
4. Groceries & Dining Costs
Atlanta:
- Milk (gallon): $3.90
- Meal for two at mid-range restaurant: $70
- Monthly grocery bills (single): $460
Phoenix:
- Milk (gallon): $3.80
- Meal for two at mid-range restaurant: $68
- Monthly grocery bills (single): $480
Groceries in Phoenix tend to mirror national averages, while Atlanta has slightly lower grocery prices due to regional supply chains.
5. Utilities and Internet Comparison
Phoenix wins here, with lower utility bills overall due to more energy-efficient modern builds and lower water rates.
| Utility Type | Atlanta | Phoenix |
|---|---|---|
| Electricity/Gas | $150/mo | $120/mo |
| Water/Sewer | $35/mo | $25/mo |
| Internet (fiber) | $65/mo | $55/mo |
6. Transportation Expenses
Atlanta offers better public transportation options via MARTA, though limited beyond city center. Phoenix is car-dependent, but gas prices are generally lower.
- Atlanta: Public transit pass = $95/month
- Phoenix: No subway system—gas & car insurance = $220/month (avg)
7. Healthcare & Insurance
Atlanta healthcare tends to be higher—especially in private insurance premiums. Meanwhile, Phoenix benefits from a rapidly expanding network of health centers, clinics, and retiree-focused specialists.
| Metric | Atlanta | Phoenix |
|---|---|---|
| Average Premium | $310/mo | $280/mo |
| Routine Visit | $150 | $130 |
| Prescription Avg | $120 | $105 |
8. Taxes and Local Fees
- Georgia has a flat state income tax of 5.75%. Property taxes run slightly higher than Arizona.
- Arizona boasts an effective state tax rate of around 2.5%, thanks to friendly tax codes for middle-income households.
Winner: Phoenix again takes the advantage here with lower income taxes and generally lighter local fees.
9. Lifestyle & Daily Living Expenses
Fitness & Recreation
- Gym Membership: $55/month in Atlanta; $48 in Phoenix
- Movie Ticket: $14 in both cities
- Childcare (preschool full-day): $1,200/month in Atlanta; $1,150 in Phoenix
Outdoor Lifestyle
Though both cities feature impressive parks and access to hiking or biking trails, Phoenix shines with year-round dry weather and proximity to Sedona and Flagstaff.
10. What You Can Get for $3,000/Month in Each City
Atlanta
- Rent a 2-bedroom in Midtown or Buckhead
- Co-work membership, gym pass, and broad entertainment options
- Groceries, public transport, and still save
Phoenix
- Live in a 2-bedroom apartment in Arcadia or Tempe
- Own a car, enjoy weekly desert hikes, and dine out comfortably
- Factor in lower taxes and keep more disposable income
Lifestyle Balance: If outdoor living with low winter living costs matters most, Phoenix offers luxury for less.
11. Summary: Which City Offers Better Value in 2025?
While both Atlanta and Phoenix are growing fast and attracting new residents for good reason, your ideal match depends on your priorities.
- Atlanta excels in professional diversity, urban culture, and public transport
- Phoenix is unbeatable on taxes, utilities, and lifestyle affordability
If you’re a remote worker or retiree looking to lower costs and maximize leisure, Phoenix may be your best bet. For young professionals or families needing better transit and school options, Atlanta delivers strong value.
12. Explore Zip Code Data on CompaniesByZipcode.com
Want to drill down to zip-code-level data for rent averages, school ratings, and area job availability in both cities?
Visit CompaniesByZipcode.com to explore real-time business directories, housing stats, and local amenities zip by zip.
13. What’s Next?
Next Week: Coastal Living Showdown—San Diego vs. Miami: Sunshine, Taxes & Sand Dollars Compared
Stay tuned for the ultimate comparison of two of America’s favorite beachside lifestyle cities—and where you’ll get more ocean for your overhead.
Ready to move smart? Let CompaniesByZipcode.com be your go-to for making location decisions that align with your wallet and your lifestyle.
