Why Californians Are Choosing Arizona: Affordable Living, Top Communities, and Tax Benefits

The migration of Californians to Arizona has become one of the most significant demographic shifts in the U.S. Over the past decade, more than 630,000 Californians—an average of 173 people per day—have made Arizona their new home. This influx highlights not only Arizona’s appeal but also the challenges that California residents face in maintaining an affordable and comfortable lifestyle. In this blog, I’ll break down why so many are leaving California for Arizona, the benefits of making the move, and what it means for both states.

Arizona: The No. 2 Destination for Californians

Arizona ranks as the second-most popular destination for Californians leaving the Golden State, trailing only Texas. While Texas leads in overall numbers, Arizona offers unique advantages that provide an edge for many Californians considering relocation.

1. The Draw of Affordable Housing

One of the most significant factors driving Californians to Arizona is the drastic difference in housing costs.

• Home Prices: The average home price in Arizona is $321,000, compared to California’s $659,000. This disparity allows Californians to save nearly 50% on housing costs by moving to Arizona.
• Rent Savings: Renters also see substantial benefits, with Arizona apartment rents averaging 30% lower than in California.

This affordability opens the door to homeownership for many who were priced out of California’s housing market. For example:

• Los Angeles to Maricopa County: 43% of former Angelenos who move to Maricopa County become homeowners within their first year.
• San Diego to Maricopa County: 54% of movers from San Diego achieve homeownership in their first year in Arizona.

2. Favorable Tax Environment

California’s high taxes are another major reason for the exodus. Arizona’s tax structure offers substantial relief:

• Income Tax: Arizona’s flat 2.5% income tax is one of the lowest in the nation, a stark contrast to California’s 13.3%, the highest in the country.
• Property Taxes: Arizona’s property taxes are among the lowest in the U.S., making homeownership even more affordable compared to Texas, where property taxes are notoriously high.

3. Why Arizona Beats Texas for Many Californians

While Texas also attracts a significant number of Californians, Arizona offers distinct advantages that make it a better fit for many:

• Closer Proximity: Arizona’s proximity to California allows movers to stay connected to family, friends, and business opportunities, minimizing the upheaval of relocating.
• Lower Property Taxes: Unlike Texas, which offsets its lack of state income tax with some of the highest property taxes in the nation, Arizona combines a low 2.5% income tax rate with affordable property taxes, delivering greater overall savings.
• Similar Amenities: Arizona offers a comparable lifestyle to California with stunning natural landscapes, vibrant urban centers, and a warm climate. Texans moving farther east often lose the accessibility to California’s coastline and the amenities of the Western U.S.

These factors give Arizona a competitive edge for Californians looking for a balance of affordability, lifestyle, and convenience.

4. Popular Communities for Californians in Arizona

Arizona boasts a variety of vibrant communities that appeal to Californians seeking affordability, amenities, and an excellent quality of life. Here are a few standout neighborhoods that have become hotspots for new arrivals:

• Verrado (Buckeye)

  • Known for its small-town charm, Verrado features tree-lined streets, a vibrant Main Street district, and plenty of parks. It's ideal for families and those seeking a close-knit community with modern amenities.

• Sterling Grove (Surprise)

  • This gated luxury community combines resort-style living with beautifully designed homes. It’s particularly appealing for retirees and those looking for a peaceful, upscale lifestyle.

• Vistancia (Peoria)

  • Offering a blend of family-friendly neighborhoods and active adult communities, Vistancia is surrounded by stunning desert landscapes and features top-rated schools and recreational opportunities.

• Estrella (Goodyear)

  • Located near the Sierra Estrella Mountains, this community is perfect for outdoor enthusiasts, offering miles of trails, scenic lakes, and a host of amenities for families and retirees alike.

• Eastmark (Mesa)

  • One of Arizona's most popular master-planned communities, Eastmark combines innovation, community events, and a family-oriented atmosphere, making it a top choice for millennials and young families.

• Norterra (Phoenix)

  • Norterra provides urban convenience with easy access to shopping, dining, and entertainment, along with proximity to hiking trails and natural preserves.

These communities reflect the diverse lifestyle options available in Arizona, from luxury living to family-friendly suburbs and everything in between.

5. A Booming Job Market and Lower Unemployment

Arizona’s growing economy and lower unemployment rates make it an attractive option for job seekers:

• Maricopa County: Boasts a 3.8% unemployment rate, compared to Los Angeles County’s 6.5%.
• Opportunities for Millennials and Gen Z: Arizona’s burgeoning tech and healthcare industries are attracting younger generations, who find that salaries in Arizona often surpass those in California after adjusting for cost of living.

6. Lifestyle Benefits in Arizona

Beyond affordability, Arizona offers an unmatched quality of life:

• Proximity to Nature: Arizona’s natural wonders, including the Grand Canyon and Sedona, attract outdoor enthusiasts.
• Relaxed Living: The state’s lower cost of living and slower pace appeal to those seeking a reprieve from California’s high-pressure lifestyle.
• Family-Friendly Communities: Arizona cities like Chandler, Gilbert, and Scottsdale provide excellent schools and safe neighborhoods, making them ideal for families.

7. The Economic Impact of California’s Exodus

Arizona’s housing market has experienced a significant boost from incoming Californians. With consistent demand, home values in the Phoenix metro area continue to appreciate, benefiting both current residents and new arrivals.

Is Arizona the Right Move for You?

If you’re considering leaving California, Arizona’s lower costs, economic opportunities, and quality of life make it a compelling choice. Whether you’re a millennial looking for better job prospects, a retiree seeking affordable living, or a family in search of a new start, Arizona offers something for everyone. And with advantages over Texas, such as lower property taxes, closer proximity to California, and access to similar amenities, Arizona is the smarter choice for many.

Thinking about making the move? Explore Arizona’s diverse communities and find out how you can make the most of this transition. Contact me to start your journey to Arizona today!