Savings rate in Phoenix — are you on track?

In Phoenix, a savings rate of 12% of gross income is the expected benchmark for mid-income earners in United States. A rate below 7% is considered a minimum floor — anything less means you are not building meaningful financial resilience. Reaching 26% or above puts you in a strong position relative to others at your income level.

The median rent in Phoenix is around $1,600 per month. Phoenix median rent is around $1,600/month, up sharply following sustained migration from California. This makes rent one of the biggest factors in your ability to save — especially for renters, who typically face higher housing cost burdens than homeowners with fixed mortgages.

A typical budget in Phoenix includes approximately $1,600/month for rent and $1,700/month for other living expenses, for a combined $3,300/month in core costs. Phoenix's income-to-cost ratio has deteriorated since 2020 but remains better than coastal peers. Any income above this baseline is what is available for saving or investing.

Yes — but it requires a savings rate in the 7–20% range to match the benchmark for United States. Phoenix is a high cost city, so housing and living costs are significant and require careful budgeting to reach the savings benchmark. Phoenix's income-to-cost ratio has deteriorated since 2020 but remains better than coastal peers.

The benchmark is derived from BLS Consumer Expenditure Survey 2023, the official national household expenditure survey for United States. Savings rates are calculated by income band — so the expected rate adjusts based on what you earn, not a single national average. This makes the benchmark more relevant to your actual financial position in Phoenix.