Surprise and Phoenix, AZ Among Top 10 Most Affordable Western Cities Surprise and Phoenix have been ranked third and ninth, respectively, on Motley Fool’s 2025 Most Affordable Places in the West list, which factors household income against living expenses . Historically, Western cities demand higher salaries to match elevated living costs, but this report highlights exceptions where wages and expenses balance out.
Surprise, a rapidly expanding city of just over 158,000 residents in the West Valley, achieved an income-to-expense ratio of 1.13. With an estimated annual cost of living of $79,521, its median household income of $89,560 outpaces the national averages of $77,280 and $87,869, respectively, reflecting strong economic growth. The city’s median age is 41, and its retail, healthcare, and education sectors dominate employment, contributing to its affordability .
Phoenix, the largest market on the list, posted a ratio of 1.03. Despite a cost-of-living index of 106.2 and housing prices 16 percent above the national average rent of $2,120 per month, the overall living expenses hover just 6 percent above average thanks to a median income of $79,664. The city’s diverse age profile—median age 34—includes young professionals, mid-career workers, and retirees, many of whom also consider Surprise for its comparative value.
Denver topped the rankings with an income-to-expense ratio of 1.19, followed by Sandoval County in New Mexico at 1.18. The study evaluated Cost-of-Living Index data from the Council for Community and Economic Research—covering housing, utilities, groceries, transportation, healthcare, and other goods—across 254 U.S. urban areas. It also incorporated household expenditure figures from the Bureau of Labor Statistics and income data from the Census Bureau’s American Community Survey, focusing on 49 Western urban regions.
Additional Arizona findings include Bullhead City at sixth place among the West’s cheapest cities with a cost-of-living index of 92.8, and Flagstaff ranking tenth in expense at 121.6. Original article by – Mignon A. Gould, Associate Editor, Phoenix Business Journal (May 12th, 2025)
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