Many retirees looking to settle down in Arizona find themselves in Scottsdale, which is one of the top vacation destinations in the country. But with the city’s ballooning population of millionaires, its government’s anti-apartment stance and its general aversion to anyone or anything poor, Scottsdale is far from the cheapest spot in Arizona to retire.
In fact, according to a study by GoBankingRates, it’s one of the most expensive retirement destinations in the country. The study analyzed cities with populations of more than 25,000 people, at least 25% of whom are 65 or older. Then, the study ranked those cities based on cost-of-living metrics, including grocery and health care costs, expenditure costs for retirees, as well as mortgage and rent costs.
Scottsdale came in at No. 6 on the list, the first locale outside of California to make the ranking. Arizona’s coastal neighbor dominates the ranking, with the Cali destinations of Saratoga, Rancho Palos Verdes, Walnut Creek, Cerritos and Palm Springs beating out Scottsdale. Florida has the second-most spots on the list, and Arizona comes in third with three.
Ranked 14th is Prescott, located almost two hours north of Phoenix. With 41% of the roughly 50,000-person town at least 65, Prescott is filled with retirees who actually enjoy experiencing all four seasons. However, the area’s median home price has risen dramatically in recent years, according to Finance Buzz, likely contributing to its addition on this list.
A popular vacation destination, Lake Havasu City, comes in 18th. The western Arizona city of roughly 60,000 people sits on the California border along Lake Havasu and the Colorado River. Its location and warm temperatures provide lots of activities for senior residents, like golfing, boating and fishing. However, with so many amenities comes high costs, as the overall cost of living is higher than Arizona’s average.
Perhaps because of their relatively remote locations, Prescott and Lake Havasu City have the highest average annual health care costs on the list. Both cities top $10,000 in costs for that metric, while no other ranked city reached five digits.
Here’s how the three Arizona cities on the list break down.
6. Scottsdale
65+ percentage: 26%Average home value: $954,919
Average annual cost of groceries: $5,120
Average annual cost of health care: $7,338
Total annual cost of living: $81,525
14. Prescott
65+ percentage: 41%Average home value: $623,194
Average annual cost of groceries: $4,961
Average annual cost of health care: $10,273
Total annual cost of living: $62,383
18. Lake Havasu City
65+ percentage: 35%Average home value: $486,770
Average annual cost of groceries: $4,847
Average annual cost of health care: $10,400
Total cost of living: $53,721
