You need a salary of $87K to live comfortably in this Arizona community

Did you know Gilbert, Arizona sets a high bar for living well? It costs $87,033.46 annually for a comfy life there. This trend mirrors what’s happening in Phoenix’s overall living costs, where Gilbert is. The Phoenix area’s Consumer Price Index increased by 2.2% the past year, says the U.S. Bureau of Labor Statistics. This jump points to a rising cost of living in Arizona, driven by housing and other needs. Get the latest insights on economic trends in our news section.

Key Takeaways

Cost of living in Arizona has risen significantly, impacting the salary benchmark in Arizona communities.
In Gilbert, a comfortable lifestyle requires an annual salary of $87,033.46.
The Consumer Price Index for the Phoenix area increased by 2.2% over the past year.
Housing market dynamics play a crucial role in escalating living costs in Gilbert and nearby areas.
Understanding these trends helps residents plan their finances more effectively.

Why Gilbert, Arizona is a High-Cost Community

Gilbert, Arizona is known for its beautiful areas and the quality of life it offers. This makes living there more expensive. It’s a growing suburb near the Phoenix area and is often more costly to live in than other places.

Overview of Cost of Living in Gilbert

Living in Gilbert costs more for several reasons. For a comfortable life, people need to earn about $127,977 each year. This is higher than nearby cities like Scottsdale, where you need $115,774, and Chandler, where you need $110,416.

In fact, living in Gilbert, Scottsdale, and Chandler is pricier than living in Boston or San Diego. A big part of the cost is housing. The average home there costs about $574,600. This is above both the state’s average and higher than Phoenix’s average home prices.

Factors Contributing to High Expenses

A few things make life expensive in Gilbert. Its cost of living index is 113, higher than the state and country averages. In 2022, prices went up by 13% in the Phoenix area, making life even more costly.

Homebuyers often need cosigners due to these high prices. Yet, the city is still attractive because of its weather. It has about 300 days of sunshine, mild winters, and hot summers with an average temperature of 97 degrees.

Gilbert has 59 neighborhoods, each with unique features. Power Ranch has parks that are easy to walk to and a golf course. Silver Creek stands out as the safest area and is close to great parks.

Seville focuses on a life around golf and has a club. Finley Farms is great for families, with many homes and community events. Apartments like the Flats at SanTan also offer a high-quality life in Gilbert, adding to the higher living costs.

Understanding the $87K Salary Benchmark

In Gilbert, living comfortably benchmarks at $87K. This salary means hourly earnings of $41.84, according to ConsumerAffairs. Knowing how this figure is reached is crucial. It helps address different income requirements in Arizona.

Calculation Methods

To ensure a stable life, the $87K salary looks at monthly costs. It covers rent, utilities, groceries, and transport. The approach fits the real living costs and avoids money troubles.

Components of the $87K Salary

The $87K goes into several spending areas:

Housing: This is important, with rent costs setting much of the salary’s need.
Utilities: It covers water, electricity, and gas, crucial for daily life.
Groceries: It includes food and household items for living.
Transportation: Money for commuting, by personal car or public transport.

These costs shape the salary calculation in Gilbert. Knowing and using these Gilbert financial standards can help people plan and budget their money smartly.

Housing Costs in Gilbert, Arizona

Housing is a key cost in Gilbert. This Arizona town is popular, making prices important to know. They might be different from nearby areas.

Median Rent Prices

Gilbert’s median rent for homes is between $1,400 and $1,500 a month at the lower end. This shows a big part of income goes to housing. Buying or renting a home here means a big financial step with a $330,000 price tag.

Comparison with Nearby Cities

When comparing rent in Arizona, Gilbert is pricier than its neighbors. It tops cities like Phoenix, Glendale, Mesa, and Tucson in housing costs. Below is a summary of how Gilbert’s housing compares:

City	Median Rent	Median Home Price
Gilbert	$1,400 – $1,500	$330,000
Phoenix	$1,200 – $1,300	$290,000
Glendale	$1,150 – $1,250	$280,000
Mesa	$1,100 – $1,200	$275,000
Tucson	$950 – $1,050	$250,000

The Gilbert median rent and home prices mean you need a higher income to live comfortably here than in other cities. This is true for more than just rent. HOA fees and utility bills, shaped by the hot desert, can also add up, particularly with pools in some homes.

The Impact of Rising Living Costs in the Valley

The cost of living in the Valley, including Gilbert, has been going up for years. This trend reflects a big picture shift across the nation. High housing prices play a big role in this, affecting both future expenses and where people live. Knowing the past and what costs might be like in the future is key for folks and those looking to buy a home.

Historical Trends and Increases

Over the years, living costs in the Valley have been like those seen throughout the US, steadily going up. A striking fact is that Arizona needs about 270,000 more homes right now. For every 100 very low-income households, there are just 26 places to rent. This shortage means over a quarter of all renters use more than half their income on rent.

The situation gets worse because about 30 housing projects around metro Phoenix were either delayed or stopped last year. This happened because of objections from the community, problems with zoning, or political issues. Also, the costs of land, building materials, and labor have all been going up, adding to the strain on people’s wallets.

Projected Future Costs

The economic forecast for Phoenix points to even higher living costs coming unless something big changes. To afford a home at the current median price of $460,000, you’ll need to make over $123,000. For renting an average two-bedroom place at $1,671 a month, you should earn at least $66,840.

The local predictions suggest that keeping future living costs in check will be tough for Gilbert. This will involve working through issues like changing the rules to allow for more affordable housing, a process that can take a long time. The dislike for new housing projects because some people worry it will lower property values, add traffic, or lead to more crime is also a major problem.

To fight the rise in costs, there are suggestions like boosting tax credits for affordable housing, not charging certain fees, and asking voters to approve special bonds. These steps could help lessen the financial load for people and slow down the cost increase.

Without these actions, the forecast says that living in places like Gilbert will only get more expensive. That’s why it’s so important for the local government and the community to come up with plans that will keep costs more manageable in the long run.

To dive deeper into how the housing shortage in Phoenix and its economic impacts, you can find more information here.

Comparing Salaries Needed in Other Arizona Communities

To live well in Arizona, knowing about pay and living expenses is crucial. Gilbert, Scottsdale, and Chandler all have different financial needs and job pay, which affect your budget for living comfortably.

Scottsdale

Scottsdale gives a quieter life that needs a bit less salary than Gilbert. You need about $86,193.03 to live well. This is 33% cheaper than in San Francisco, affecting how much money you can save.

Housing, transport, and healthcare costs shape your budget in Scottsdale. For instance:

Groceries cost index: 101.80
Housing cost index: 125.30
Utilities cost index: 94.30
Transportation cost index: 99.20
Health cost index: 93.50

Comparing Scottsdale to Gilbert shows Scottsdale needs a little less for the same life quality. This makes Scottsdale a good choice for many.

Chandler

Chandler offers a different financial situation. Living well there costs about $78,068.65 a year. This is less than Gilbert and Scottsdale. Chandler’s mix of jobs affects how much you spend on rent, transport, and health.

Here are some of Chandler’s key financial figures:

Average annual salary: $58,620
Median monthly mortgage payments: $2,513
Average monthly rental costs: $1,490
Average annual food costs: $4,770
Average annual income taxes: $5,015

Chandler is cheaper to live in than Gilbert. This means more money for fun and maybe a better life.

Knowing these salary details helps you choose where to live in Arizona. It also helps with planning your budget.

How the Consumer Price Index Affects Your Budget

The Consumer Price Index Arizona shows that Phoenix is seeing a big jump in prices. The cost of living there went up 24.0% from December 2019 to 2023. This is higher than the national increase of 19.4%. It makes it harder for people to keep their finances on track.

It’s key to grasp the CPI-U’s impact on your budget in Arizona. The main point is that housing costs a lot more now. This means people must spend more on homes, leaving less for everything else. Even though jobs are growing here by 2.1%, just a bit lower than the US at 2.3%, costs keep rising, making it tough.

Housing in Phoenix is now less affordable at 21.7%, way under the 37.4% national average. So, doing good financial planning in Gilbert is even more important. Families need to be smart about their budgets in the face of these rising costs. Knowing how the hits your wallet can help. It can lessen the financial stress and make the future more stable in fast-growing places like Gilbert.

The Role of Median Rent Data in Determining Salary Requirements

Median rent data is key in figuring out how much someone needs to earn for affordable housing. Since housing takes up a big part of our budget, knowing this helps set realistic salary goals.

Data Sources and Methodology

HOME Rent Limit data from 1998 up to now gives us crucial info on rent trends and what people can afford. HUD, or the U.S. Department of Housing and Urban Development, decides rent limits. They either use the local fair market rent or say rent shouldn’t be over 30% of family income.

HUD also figures out Fair Market Rents each year for the Section 8 Program. If there are five or more HOME-assisted homes in a project, 20% of them should be for very low-income families. For these, the rent can’t be more than 30% of their annual income. These rules are key for keeping housing affordable.

Federal Government’s Affordability Threshold

The government’s big rule is that housing should cost no more than 30% of your income. This, plus regular updates on Fair Market Rents by HUD, shapes what’s considered affordable. It also guides how much help people get in housing programs. By sticking to this 30% rule, the goal is to keep families financially stable.

Since 2005, the American Community Survey (ACS) includes data on owning, monthly renting, and home values. This info helps with community growth, tax plans, and deciding rules for where housing can be. It gives a wide picture of home costs and what people can afford based on their income.

Is $87K Enough? Balancing Lifestyle and Budget

Living on a $87K salary in Gilbert, Arizona is about smart budgeting. It’s important to know what you must spend on and what you can choose to spend on. This way, you can handle your money well and live comfortably.

Essential vs. Discretionary Spending

Essential spending includes things like your home, food, and healthcare. These are must-haves and should come first in your budget. Discretionary spending, on the other hand, is for fun things like eating out and travel. It’s key to focus on the essentials to stay financially healthy.

Tips for Maximizing Your Income

Making the most of your $87K means finding extra ways to make money. Side jobs that match your skills can help a lot. Joshua Becker, known in finance circles, talks about this in his
podcast. He also suggests spending less and saving more smartly.

Keep learning and growing your skills to earn more. This can lead to better jobs and more money. Also, using apps to track your spending and savings can make things easier. It helps you stick to your budget.

To sum up, with good budgeting and extra earnings, living well on $87K is very doable in Gilbert.

How Gilbert Compares to Other Expensive U.S. Cities

Gilbert, AZ, has a cost of living 7.5% higher than the national average. This is mainly due to higher costs in transportation, food, and housing. This trend follows the U.S. general cost of living trends. When we compare Gilbert to cities like New York City and San Francisco, we see it’s more affordable.

Comparison with New York City

Moving from New York City to Gilbert shows a big difference in costs. New York is a pricey city, with living costs 77.0% above the national average. On the other hand, Gilbert is much more affordable. Moving can cut living costs by about 69.5%. This is great for those looking to save money but stay near city life.

Comparison with San Francisco

Moving from San Francisco to Gilbert also means big savings. San Francisco’s costs are 86.5% above the national average. Gilbert, however, is much more budget-friendly. Moving can save about 79.0% on living expenses. This big gap shows Gilbert is a much cheaper option for those leaving expensive cities.

Compared to cities like Washington, DC; Miami; Chicago; and Boston, Gilbert is consistently more budget-friendly. This makes it a good choice for those weighing their options. They can see the clear benefits of moving to Gilbert over staying in New York City or San Francisco.

For more details on Gilbert’s living costs, you can check out Gilbert Cost of Living Overview.

Why Salary, Arizona, Community Are Key Elements in Cost Calculations

It’s important to know how salary, where you live, and community standards connect for your budget. Arizona has seen 115,900 new residents from July 2022 to July 2023, a rise of 1.6%. This increase shows Arizona’s fast-growing appeal compared to the whole country. People moving in is driving this growth, showing off good communities like Phoenix and Tucson.

Arizona added 64,700 jobs in 2023, growing 2.1%. This is slightly below the nation’s 2.3% rate but still a healthy sign. However, Arizona’s unemployment rate in 2023 was 3.9%, just above the U.S. rate. Living costs in Phoenix also jumped by 24.0% from December 2019 to December 2023, more than the national average rise. This makes budget planning harder due to expensive living costs.

In Arizona, the personal income per person increased by 22.5% from 2019 to 2022. After adjusting for inflation, there was still a 2.5% growth. Yet, it has become harder for families to find affordable housing. Phoenix, for example, has only 21.7% of homes affordable for the average family, far below the national level of 37.4%. The state expects job and population growth to slow by 2026, which makes understanding related factors crucial for planning. This includes knowing how salaries, living costs, and community quality come together. It helps ensure Arizona remains a place where people can have a high quality of life. Explore a wide range of financial articles on our news page.

What is the required salary to live comfortably in Gilbert, Arizona?

To live comfortably in Gilbert, Arizona, you need to earn ,033.46 per year. This comes from ConsumerAffairs’ research.

Why is Gilbert, Arizona considered a high-cost community?

Gilbert is costly mainly because of its high housing prices. These prices are part of a larger trend affecting costs in Arizona.

How was the K salary benchmark in Gilbert calculated?

ConsumerAffairs calculated the K benchmark. They used median rent figures and the federal government’s housing cost affordability standard of 30%.

What are the median rent prices in Gilbert, Arizona?

Rent prices are high in Gilbert, which greatly affects the cost of living. It is a significant part of what makes living there expensive.

How do living costs in Gilbert compare to nearby cities?

Gilbert’s cost of living is higher than nearby cities including Scottsdale and Chandler. Even cities like Phoenix, Glendale, Mesa, and Tucson require less.

What historical trends affect the cost of living in the Valley, including Gilbert?

The cost of living in Gilbert has steadily increased over the years. This trend reflects the nation’s overall economic changes.

How does Gilbert’s required salary compare to other costly U.S. cities?

Compared to expensive cities like New York City, Gilbert’s salary needs are lower. Gilbert asks for K while New York City needs over 5K for a similar lifestyle.

What impact does the Consumer Price Index (CPI) have on budgeting in Gilbert?

The CPI-U for the Phoenix area plays a key role in budgeting. It shows how costs are changing and helps calculate necessary earnings.

How is median rent data used to determine salary requirements in Gilbert?

Figuring out how much people need to earn to afford living in Gilbert uses median rent. This includes ensuring that housing is no more than 30% of a person’s income.

Is an K salary enough to balance lifestyle and budget in Gilbert?

Yes, K should cover both necessary and extra expenses in Gilbert. But, it’s important to manage money well and be smart about spending.

How do salary requirements in Gilbert compare to those in Scottsdale and Chandler?

Gilbert needs a bit more income than Scottsdale or Chandler. Scottsdale requires about K, and Chandler needs around K. These differences show the various living costs.