Orem vs Tempe
Cost of Living Comparison · 2026
Orem
Tempe
The Verdict
The cost gap between these cities is 10.4%, with Tempe being the more affordable option. A $75,000 income in Orem has equivalent purchasing power to $67,949 in Tempe.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in Orem has the same purchasing power as $67,949 in Tempe.
Conversely, $75,000 in Tempe equals $82,783 in Orem.
Living in Orem vs Tempe
Housing Costs
Orem's housing index of 147 is higher Tempe's 114, translating to median home prices of $528,000 vs $400,000. The $128,000 difference in home prices means roughly $8,316 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,400/mo in Orem compared to $1,600/mo in Tempe, a monthly difference of $200.
Grocery & Food Costs
Grocery expenses index at 98 in Orem and 100 in Tempe. A household spending the national average of $475/month on groceries would pay approximately $466/month in Orem vs $475/month in Tempe. The difference in grocery costs between these cities is relatively minor and unlikely to be a deciding factor in relocation.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 92 in Orem and 96 in Tempe. Monthly utility bills average approximately $368 in Orem vs $384 in Tempe. Utility costs are relatively comparable between these two cities.
Healthcare
Healthcare costs index at 95 in Orem and 95 in Tempe. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. Healthcare costs are relatively similar between these two cities, though individual plan costs can still vary.
Income & Purchasing Power
Median household income is $86,000 in Orem and $56,068 in Tempe. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $73,504 and $52,894 respectively. Orem residents enjoy stronger real purchasing power despite higher nominal wages.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $2,007/month to housing in Orem vs $1,308/month in Tempe. In Orem, median rent of $1,400/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
As an Amazon Associate we earn from qualifying purchases