Map SearchArizona Description/Overview
Arizona, known as the "Grand Canyon State", is located in the Southwest region of the United States, bordered by Colorado, New Mexico, Utah, the "four corners". Deemed the fastest growing state in the country in 2006, people 55 and over have been flocking to Arizona's retirement communities from the Midwest, California, and Northeast to bask in the year-round sun, taking advantage of the innovative development, recreational and cultural attractions, and relatively affordable cost of living.
But Arizona is actually the birthplace of the modern active retirement community. Starting in the 1960s, Del Webb introduced the first age-restricted community, which has become popular around the country. The Phoenix Metro area, Tucson, and Green Valley are homes to some of the best active retirement communities in the state. In fact, Green Valley's population is primarily 55+, so the majority of the amenities cater to the active retirement lifestyle. Despite recent downturns in the state's housing market, retirement communities are experiencing greater stability amidst decline, positioning Arizona as a place of real estate security among active retirees amid a changing market.
Other feature's of Arizona's economy further this view of continued viability in changing times. The job market continues to be strong in diverse areas, including scientific and technical sectors, education, back-office, industrial and restaurant industries. Arizona boasts a pro-business climate which further contributes to stable growth in the state. With three distinct climates, desert, mountain, and river terrains for an array of recreational activities, as well as the 5th largest city in the country, tourism will continue to remain strong in Arizona. The rich heritage taken from times of Spanish, Mexican and even early American frontier history provides Arizona residents and visitors a multicultural experience in tandem with modern expansion.
The quality of life Arizona residents enjoy is enviable to other cities in the U.S. The state is home to The Mayo Clinic, rated as one of the Top 50 hospitals in the country. Arizona is also strong in home healthcare, chronic health treatment, as well as cancer treatment and prevention. State property and sales tax is lower than many states; property tax on average can be as low as 0.8-1%. Those considering a move to one of Arizona's active retirement communities will also avoid estate taxes; the state does not assess inheritance or gift taxes on its residents.
In addition to tax savings, Arizona's cost of living in its major cities is comparatively lower than West and East coast metropolitan areas, and most of its Four Corner counterparts. Overall, the Arizona consumer price index is in line with the national average. Healthcare and housing were among the least expensive categories when Phoenix and Tucson indicators were compared to other major cities like Los Angeles, Oakland, Denver, or Boston. The affordable cost of living makes Arizona's diverse regional cities more attractive to the active adult looking for a socially and economically supportive retirement community.
The Phoenix Metro area offers all of the benefits of a big city lifestyle within the backdrop of the Sonoran Desert. For those seeking mountainous terrains, cooler temperatures, and ranch living, Flagstaff and the Northern Arizona Area can meet all needs with active adult communities with a calmer, smaller city feel adjacent to the Grand Canyon. Southern Arizona is home to Arizona's second largest city, Tucson, along with a rich art scene and multicultural attractions amidst luxury amenities and lush golf course retirement communities.
Learn more about the regions of Arizona:
Phoenix
Tucson & Green Valley
History
Arizona, known for its year-round temperate climate, golf-courses, a breadth of cultural and tourist attractions, home to the 5th largest city in the U.S. (Phoenix), and heralded in recent years as the fastest-growing state in the country, is also one of the last states to join the union.
After a rich history filled with centuries of colonization by Spain and Mexico, fierce territorial battles among U.S. Confederates and The Union and American Native Indians, and what even the state governor's office describes as years of "lawless, boisterous frontier days", Arizona finally joined The Union as its 48th state in 1912.
Geography
All of these historical contributions influence the Arizona landscape of today, both culturally and demographically. Located in the southwest as part of the four corner states with Colorado, Utah and New Mexico, Arizona gives active retirees wide-open natural spaces like those in Northern Arizona coupled with excitement of metropolitan attractions in Phoenix and growing cities like Tucson, Pima, and Yuma.
Population
Arizona's ethnically-diverse population has experienced growth nearly 4 times the national average since 2000. Although the state's median age is younger than the U.S. average at 34.2 years, nearly a quarter of the Arizona's population are active retirees who have made the state the third most popular for retirement.
Even with such an influx of new transfers to the state, most residents still choose to live in high density areas. More than half live in cities of more than 100,000; nearly 25% of Arizona's population lives in Phoenix. Even with varied stories of congestion due to growth in and around Phoenix, overall Arizona commute or drive times are still in line with national averages.
Growth
The state is expected to continue seeing an influx of new arrivals from California, the Midwest, and Northeast who enjoy the blend of great weather, affordability and low taxation. Arizona's economy is backed by a diversity of industries, including aerospace, electronics, and other scientific and technical specialties. Government and tourism continue to be the state's important sectors. Even with the recent shift away from its historically-known industries, agriculture and mining are still sectors that support the economy. In the last two years, Arizona has been rated first or second across entrepreneurial indexes for its pro-business climate.
Despite recent downturns in the real estate market and municipal budgets (which is similar in other states throughout the U.S.), Arizona is slated for continuous, stable growth, especially in the bioscience, back-office, industrial, education, and restaurant industries.
With continued growth comes an availability of job opportunities for the active adult who wants to stay active in the workforce. In addition to professional, scientific and government sectors backing the economy, they also provide millions of jobs to Arizona residents. Phoenix has been recognized as the 2nd best city for job opportunities in the country, while Tucson was selected as the 2nd best city in the country for job sustainability. Arizona was also recognized as the best state for job recruitment by companies of all sizes in 2007. Even with recent economic concerns, Western Blue Chip Economic Forecast rated Arizona number 4 in the country in job growth for 2008, with expected growth to average 2.9%.
Climate
Arizona it is typically seen as a state of everlasting warmth, because of its 300 days of sunshine per year. However, the variation in elevations across the state's expansive area gives it an array of climate conditions.
Southern Arizona experiences a low desert climate consisting of extreme summers and pleasant winters. Summers in Southern Arizona can be very hot with average July highs approaching 105 in the summer, yet winter lows average 65 in December. On the other hand, Northern Arizona is radically different than its southern counterpart. Summers are very pleasant and winters can result in large accumulations of snow. In cities like Flagstaff, summer highs reach the mid 80s, while winter lows can be below freezing. Central Arizona is a meld of these two climate types. As a high desert climate, the summers are more brisk than Southern Arizona, with an occasional dusting of light snow during the winter.
Average Arizona precipitation reaches 12.7 inches each year. Most precipitation occurs during winter and the late summer monsoon season. During monsoon season, the heavy downpours are coupled with lighting, thunderstorms, and windy conditions.
Many people from the Midwest may see pleasant winters as a needed change from the intense, snow-packed seasons of their home states. Many active retirees make Arizona an alternative to Florida after finding the summers too humid and muggy. The weather enables everyone ample opportunity to stay outdoors and enjoy the variety of activities available in such diverse terrain as Arizona. On the other hand, some complain about the extreme weather conditions, including the snowy mountain winters, or summer highs in Phoenix that can reach 125. However, because of the distinct regions, those seeking to move to an Arizona retirement community can find their ideal climate to support their active lifestyles.
Recreation, Tourism, and Cultural Opportunities
Though its claims to fame include the Grand Canyon and 300 lush golf courses throughout the state, there is an abundance of recreational, social and cultural opportunities for active retirees. Amid the Sonoran Desert terrain of Phoenix and the central Arizona region boasts the world-class resorts and spas, shopping, restaurants and vibrant nightlife of the big city. Like most major metropolitan areas, the region also offers respected museums and galleries, sporting events, as well as an array of hiking and outdoor activities.
But there is more to Arizona than the major city life of Phoenix. Northern Arizona is home to the Grand Canyon, but also encompasses the forests of the San Francisco Peaks and Lake Powell. The region provides active adults with the mountainous environment for hiking, rafting, and enjoyment of historical sites. The north central region provides a retreat from the snow of the north, featuring a broad array of recreational activities and old west and Native American cultural attractions.
Southern Arizona, including Tucson, is another source for pampering resorts and pristine golf courses. The region is known for a growing art scene and multicultural historical attractions. Active retirees with scientific interests can also engage in astronomical observations and birding in Southern Arizona's mountain ranges. Finally, the Colorado River along Arizona's west coast enables water-based activities amongst natural wonders and wildlife habitats.
Real Estate
Much like other real estate markets, Arizona has recently experienced a decline in real estate values and sales. However, these decreases have not been as extreme as the rest of the country. In March 2008, the U.S. median home price fell to $195,900; during the same time the median price in Arizona was $210,000----still 7% higher than the rest of the country. Overall, Arizona is expected to see continued price reductions in the coming year. At the same time, reduced prices have opened the door to greater affordability.
But real estate news is even better for those homeowners in active retirement communities. In some active adult communities, home value declines have nearly stabilized, with slower and less steep reductions when compared to other areas of the Phoenix/Central Arizona areas. Active adults are buffered from the double-digit losses that previously-booming communities are now experiencing. In fact, it's no surprise that retirement communities in the state are well-positioned----Arizona is the birthplace of the retirement community. Builder Del Web first tried the concept of exclusive 55 and over communities in Arizona during the 1960s, booming ever since.
Phoenix and its surrounding areas have the largest concentration of 55 and over retirement communities. Several dozen can be found in the Phoenix area alone, and can range from golf course and luxury developments to more suburban atmospheres. These retirement communities are rich in recreational activities, spas, and retail geared toward the tastes of its mature and active residents. The communities in Phoenix are likely to be more expensive, and prices will tend to decrease farther from the greater metropolitan area.
For those looking for an alternative to the major city without a loss of amenities, Southern Arizona communities in Tucson and Green Valley, and Northern Arizona communities have much to offer. Tucson has a couple dozen active adult communities designed for golfing, luxury, and suburban living. Just south of Tucson is Green Valley, home to the largest population of 55+ residents in the state; less than 2% of Green Valley residents are under 18, so the area caters to the amenities, and lifestyle of active adults. In the Northern Arizona cities of Prescott, Flagstaff, and Sedona, 55+ residents can enjoy ranch-style living and nature-based activities.
Healthcare
In addition to advantages in housing, active adults in Arizona can also take advantage of over 60 hospitals in the state, including the Mayo Clinic, which ranked as one of the top 50 hospitals in the country. Health benefits costs have been found to be the 5th lowest in the country, while the state ranks 9th in lowest mortality rates and 8th in avoidable hospital use by residents. Overall, Arizona's healthcare strengths can be found in its quality of home health care, cancer and diabetes treatment, and chronic care.
Taxes
Arizona taxes and assessment may vary in comparison to the state the active adult relocates from. In terms of income tax, the state uses a 5 bracket system based on every dollar of income earned after deductions and exemptions. Arizona is one of 27 states that do not charge Social Security tax. Residents are allowed a deduction before paying taxes on pension income.
Property taxes average 1.3% of the assessed value, though the rate can vary depending on area. Additionally, the assessed value is usually lower than market price, which may further reduce expected property taxes.
At 5.6%, sales tax in Arizona is comparably lower than states like California. City sales tax is also added. However, sales tax is not levied on non-commercial food or prescription drugs.
Arizona does not impose inheritance or gift taxes on its residents, which may be of relief to active retirees settling in the state. However, it does levy taxes for being a driver----including a vehicle license tax and gas tax. Though this sounds frustrating, registration fees in Arizona are usually less than $10 annually.
Cost of Living Index
Residents of Arizona's major cities like Phoenix or Tucson experience a cost of living similar to national averages, and lower than some western major cities. For instance, the cost of living index score in Los Angeles is 153.0 overall, while Phoenix is only 101.9; Tucson is even lower at 99.3, just below the U.S. average of 100. Among east coast cities like Boston or Washington D.C., cost of living can be nearly 40 points higher than Arizona cities.
In consumer price index categories, costs of transportation, healthcare, and miscellaneous expenses were higher for both Phoenix and Tucson when compared to other categories like groceries or utilities. Even with high costs within the state, transportation is still more expensive in other major metropolitan areas. Phoenix has higher housing costs than Tucson (105.8 versus 97.3), but lower costs than major West Coast and Four Corner Cities like Denver (108.8) or Albuquerque (108.4). Healthcare costs in Arizona are generally less expensive than east coast cities like Philadelphia (113.3) and the West Coast.
Likes and Dislikes
Above all, residents love the array of landscapes, from the Sonoran Desert of Central and Southern Arizona, to the mountains of Northern Arizona. Weather is also at the top of their list, allowing residents to garden, hike, and play for most of the year. Additionally, Arizona's infrastructure, from new and innovative development, the modern freeway system, and cultural and entertainment amenities are a favorite among inhabitants.
Ironically some of the best elements of Arizona are also cited as its pitfalls by residents. The gorgeous weather that supports the active retiree lifestyle can also be dismally hot during the summer months. Some residents complain the development around the Phoenix area is actually uncontrolled urban sprawl made more distressing by traffic congestion. Some even consider the availability of modern sports and entertainment venues culturally superficial and boring.
Overall, from its major cities to its wilderness terrains, luxurious spa and golf course developments to its rich cultural heritage, the active adult can find a retirement community with all the amenities they desire in the warm desert climate.