Laredo vs Tempe
Cost of Living Comparison · 2026
Laredo
Tempe
The Verdict
Living in Laredo costs 22.6% less than Tempe. To match the purchasing power of a $75,000 salary in Laredo, you would need $96,951 in Tempe.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in Laredo has the same purchasing power as $96,951 in Tempe.
Conversely, $75,000 in Tempe equals $58,019 in Laredo.
Living in Laredo vs Tempe
Housing Costs
Laredo's housing index of 81 is lower Tempe's 114, translating to median home prices of $190,000 vs $400,000. The $210,000 difference in home prices means roughly $13,656 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,075/mo in Laredo compared to $1,600/mo in Tempe, a monthly difference of $525.
Grocery & Food Costs
Grocery expenses index at 91 in Laredo and 100 in Tempe. A household spending the national average of $475/month on groceries would pay approximately $432/month in Laredo vs $475/month in Tempe. Laredo offers a meaningful advantage on everyday food costs, saving roughly $516/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 107 in Laredo and 96 in Tempe. Monthly utility bills average approximately $428 in Laredo vs $384 in Tempe. Climate differences between the two cities drive much of this gap, with heating and cooling costs varying substantially by region.
Healthcare
Healthcare costs index at 77 in Laredo and 95 in Tempe. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 18-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.
Income & Purchasing Power
Median household income is $63,900 in Laredo and $56,068 in Tempe. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $77,927 and $52,894 respectively. Laredo residents enjoy stronger real purchasing power despite higher nominal wages.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $1,491/month to housing in Laredo vs $1,308/month in Tempe. In Laredo, median rent of $1,075/mo fits within this budget. In Tempe, median rent of $1,600/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Housing, where the gap is 33 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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