Side-by-side cost of living comparison for 2026
18% cheaper
Birmingham is 18% more affordable than Tempe. A $75,000 salary in Tempe is equivalent to $61,557 in Birmingham.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Alabama salaries · Arizona salaries
Housing is typically the biggest factor in any cost-of-living comparison. Birmingham has a housing index of 67 while Tempe sits at 114 (national average = 100). The median home in Birmingham costs $165,000 compared to $400,000 in Tempe, a difference of $235,000. Monthly rent follows a similar pattern: $1,000 in Birmingham versus $1,600 in Tempe.
Groceries and everyday expenses show a narrower gap: Birmingham scores 96 while Tempe scores 100. Both cities are close to the national average for grocery costs.
Healthcare costs in Birmingham (91) are lower than Tempe (95).
Median household income in Birmingham is $38,178 compared to $56,068 in Tempe. When adjusted for cost of living, income goes further in Birmingham.
Amazon affiliate links