Arizona Cities Where Retirees Can No Longer Afford To Live

Additional Coverage:

10 Arizona Cities Where Most Retirees Can No Longer Afford To Live (financebuzz.com)

Arizona’s Retirement Dream: Where Sunshine Meets Soaring Costs

Arizona has long been a beacon for those seeking a sun-drenched retirement, boasting warm weather and stunning vistas. But for many golden-agers, the dream is becoming a bit more expensive as housing prices climb and living costs surge in some of the state’s most beloved cities. If you’re planning your post-work life and want to maintain a high quality of life without breaking the bank, it’s time to take a closer look at which Arizona locales are no longer the affordable havens they once were.

Here’s a rundown of Arizona cities where retirees might find their budgets stretched thin:

1. Gilbert

Cost of living: 20% higher than the national average

Median home value: $56,937

This Phoenix suburb offers a strong sense of community, a safe environment, and plenty to do, from farmers’ markets to cultural events. It’s no wonder retirees are drawn to Gilbert. However, its increasing popularity has driven the median home value up by over 50% in recent years, making it a pricier option.

2. Peoria

Cost of living: 11% higher than the national average

Median home value: $480,835

Peoria is a magnet for active retirees, featuring numerous parks, golf clubs, and a performing arts center. The proximity to the Mayo Clinic also makes it an attractive choice for older adults. While the overall cost of living isn’t drastically high, housing prices have seen a significant jump, potentially challenging for those on a fixed income.

3. Oro Valley

Cost of living: 16% higher than the national average

Median home value: $499,615

Once lauded as one of the safest and wealthiest retirement towns in the U.S., Oro Valley’s low crime rates and large senior population make it a top retirement destination. However, with median home prices nearing $500,000 and a high cost of living, it might be out of reach for many retirees on a budget.

4. Prescott

Cost of living: 23% higher than the national average

Median home value: $594,576

Nestled in central Arizona, Prescott offers a mild climate, beautiful landscapes, excellent medical care, and endless outdoor activities. The downside?

Housing and other costs are significantly high, especially when compared to the average retiree income of just over $40,000. High demand for housing exacerbates the challenge for retirees navigating the real estate market.

5. Fountain Hills

Cost of living: 22% higher than the national average

Median home value: $655,551

This charming community, a short drive from Scottsdale and Phoenix, is beloved for its small-town feel, top-rated schools, and safe neighborhoods. These desirable qualities come with a premium. For retirees on a smaller household budget, keeping up with the cost of living here can be a struggle.

6. Lake Havasu

Cost of living: 24% higher than the national average

Median home value: $452,829

For outdoor enthusiasts, retiring near a lake sounds idyllic. Lake Havasu, affectionately known as “Arizona’s playground,” offers boundless activities.

Yet, rising costs are making it increasingly unaffordable. A surge in short-term vacation rentals, with investors snapping up properties, has driven up housing costs for permanent residents.

7. Surprise

Cost of living: 12% higher than the national average

Median home value: $417,937

With year-round sunshine and a plethora of activities, it’s no surprise retirees flock to Surprise. The development of large, amenity-rich retirement communities nearly two decades ago transformed the area. While these communities offer fantastic amenities, their popularity has contributed to rising living costs, making it a high-demand area for those seeking their golden years in Arizona.

8. Chino Valley

Cost of living: 23% higher than the national average

Median home value: $489,669

Retirees seeking a peaceful, rural lifestyle might find Chino Valley appealing. However, rural living often comes with higher costs due to increased travel for necessities. Additionally, the prevalence of larger homes and property sizes contributes to higher purchase prices, further impacting retiree budgets.

9. Chandler

Cost of living: 16% higher than the national average

Median home value: $517,058

With abundant sunshine and at least 10 golf courses, Chandler is a golfer’s paradise. Like many Phoenix suburbs, its desirability impacts the cost of living.

Homeowners here often face higher expenses due to numerous homeowners associations (HOAs), with dues sometimes adding up to $300 a month. For those on a fixed income, every penny counts.

10. Flagstaff

Cost of living: 19% higher than the national average

Median home value: $646,275

Flagstaff, a unique mountain town, offers a milder climate, pine trees, hiking, and even snow. However, its natural beauty comes at a price. Surrounded by federal and tribal land, the town’s limited growth potential has driven up housing costs, making it a challenging place to afford.

The Bottom Line for Your Golden Years

As the cost of living continues its upward trend in many Arizona cities, careful planning and smart financial decisions are more crucial than ever for retirees. A dream retirement doesn’t have to come with an exorbitant price tag. Before making a significant move, take time to assess your retirement readiness and ensure your envisioned lifestyle aligns with your financial reality.

Money Tips for Everyone, Regardless of Age:

Boost Your Income: If your budget feels tight, explore side hustles or other legitimate ways to supplement your income.
Grow Your Wealth: Leverage time and compound interest.

Understand your financial standing and create a plan, potentially with the help of a professional, especially if early retirement is your goal.

Seize Opportunities: Maximize available senior benefits, discounts, and money-saving opportunities.

Review your car insurance for the best rates and avoid common money-wasting traps.