Since 2017, Arizona has been the second most popular state where Californians have migrated. Between 2017 and 2019, over 187,000 Californians had moved to Arizona. DeLeon Realty has noticed this trend with our sellers, particularly to areas such as Phoenix, Scottsdale, and Paradise Valley. In the last couple of years, we have visited Scottsdale and its neighboring cities several times and talked to their top local real estate agents. These agents all commented that 30-50% of the new homeowners to Scottsdale and Paradise Valley in the last few years were from California. Based on our analysis and observation, we anticipate that more Californians will be moving to this area in the coming years, which should lead to continued appreciation.
Californians are drawn to Arizona for numerous reasons. Phoenix and its metro areas have on average 299 sunny days per year. While the hot season has an average daily temperature of 98⁰F, the “cold season” cools down to an average daily temperature of 74⁰F. With such great weather, it is no wonder that Phoenix-Scottsdale is one of the most popular golf destinations in the world, offering over 200 quality courses at every price point. This fantastic climate also has given rise to a legion of high-end outdoor shopping malls and auto malls; indeed, the flagship Barrett-Jackson collector car auction is held every March in Scottsdale. Further, outdoor lovers have endless activities at their disposal, such as hiking, biking, rock climbing, hot air ballooning, off-roading, water rafting, horseback riding, and stargazing.
The tax benefits Arizona offers its residents are much better than California. For example, Arizona’s individual income tax brackets are 2.55% and 2.98%,[1] and there is no estate or inheritance tax.
The key industries of Arizona include aerospace and defense, information technology, manufacturing, bioscience, healthcare, financial services, and film and digital media.[2] Some of the top companies with a presence in Arizona include Boeing, Intel, Google, IBM, PayPal, Honeywell Aerospace, Raytheon Technologies, BAE Systems, Roche, Medtronic, and Ventana.[3]
The political climate in Arizona is quite neutral, with 49.4% voting for the Democratic Party, 49.1% voting for the Republican Party in the 2020 presidential election.[4]
Lastly, real estate in Arizona is more affordable than in Silicon Valley. The median sales price of homes in Phoenix is $465,000,[5] Scottsdale is $800,000[6], and Paradise Valley is $2,600,000[7].
[1] https://azdor.gov/sites/default/files/2023-03/IND_Updates-2302.pdf
[2] https://www.azcommerce.com/industries
[3] https://www.azcommerce.com/industries
[4] https://www.politico.com/2020-election/results/arizona/
[5] https://phoenix-public.stats.showingtime.com/docs/mmi/2023-08/x/report?src=page (August 2023, single family)
[6] https://www.scottsdalerealtors.org/wp-content/uploads/2023/09/Neighborhood-Report_Scottsdale_Aug-2023_rs.pdf (August 2023)
[7] https://www.scottsdalerealtors.org/wp-content/uploads/2023/09/Neighborhood-Report_Paradise-Valley_Aug-2023_rs.pdf (August 2023)