Phoenix vs Cape Coral: cost of living compared
Cape Coral is 3% more expensive than Phoenix overall. Cape Coral (FL) has no state income tax; AZ tops out around 2.5%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Overall, the cost of living in Cape Coral is slightly higher than in Phoenix. While housing purchase prices are quite similar, renting tends to be more expensive in Cape Coral. Other daily expenses like food and miscellaneous goods are comparable between the two metros. A significant difference lies in state income tax, which impacts the overall financial picture for residents.
Housing
Home purchase prices are very close in both metros, but median rent is noticeably higher in Cape Coral. Beyond the mortgage, Florida homeowners face some of the nation's highest insurance premiums, and flood insurance may be necessary. Property taxes reset to market value upon sale in Florida, and many communities have additional fees for HOAs or CDDs, which can add to ownership costs.
Taxes and everyday costs
A key financial difference is Florida's lack of a state income tax, which can result in more take-home pay for Cape Coral residents. For daily expenses, food and miscellaneous goods are similarly priced in both locations. Utilities are slightly more expensive in Phoenix, while transportation costs are roughly comparable. Healthcare expenses are also very similar between the two metros.
Lifestyle trade-offs
Phoenix offers a dry, desert climate with hot summers and mild winters, while Cape Coral has a humid, subtropical climate with warm, wet summers and mild, drier winters. Getting around in both cities is primarily car-dependent, with similar average commute times. Cape Coral's extensive canal system defines much of its character, while Phoenix is a sprawling desert metropolis. Cape Coral also experiences an annual hurricane season.
Bottom line
When comparing household budgets, the absence of state income tax in Florida could provide a financial advantage for Cape Coral residents, potentially offsetting some higher costs. While housing purchase prices are similar, higher rental costs and elevated homeowners insurance in Cape Coral are important considerations. Ultimately, the overall cost difference between the two metros is not substantial, making lifestyle preferences a significant factor in a relocation decision.
| Measure | Phoenix, AZ | Cape Coral, FL |
|---|---|---|
| Overall cost of living (US avg = 100) | 102 | 105 |
| Housing index | 105 | 105 |
| Transportation index | 100 | 101 |
| Food index | 96 | 97 |
| Healthcare index | 98 | 98 |
| Utilities index | 112 | 110 |
| Misc index | 92 | 92 |
| Median home price | $388,000 | $368,000 |
| Median 1-bedroom rent | $1,450/mo | $1,600/mo |
| Average commute | 28 min | 28 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Cape Coral home with the True Cost Calculator.