Is Arizona a Good Place to Live?

Yes, Arizona is a good place to live if you love sunshine, the outdoors, and a relatively low cost of living. But Arizona was also ranked a modest #32 in U.S. News & World’s Ranking of Overall Best States. So, is Arizona really a good place to live? 

We’ll do our best to answer this question as thoroughly as possible in the following article. As one of the leading financial advisors in Arizona, we’ll pay special attention to the financial aspects of living in Arizona. 

Before reading, keep in mind that discussions like this are highly subjective and depend on your personal preferences. For example, you could consider Arizona’s intense sunny climate either a pro or a con, depending on the types of weather that you like. 

Who is Arizona Best For?

Arizona is building up a reputation as an ideal place for retirees, mainly thanks to its warm climate and abundant sunshine. But, there are plenty of demographics who would benefit from moving to Arizona, including:

1. Young professionals: Arizona’s major cities are growing quickly, with thriving economies that are attractive to young professionals. 
2. Families: Arizona also has a fairly low cost of living and lots of affordable housing when compared to other states. This makes it especially attractive to people looking to raise a family. 
3. Remote workers: The state’s fairly affordable cost of living and lifestyle benefits are also attractive to remote workers who may live in less beautiful parts of the country. 

If you’re looking to move to Arizona, you should be aware that this great state has a lot to offer, no matter what stage of life you’re in. Now, let’s examine how the cost of living in Arizona stacks up to other states.

Is Arizona Affordable?

In 2023, the average cost of living in Arizona was $53,921, according to the Bureau of Economic Analysis.

This makes Arizona cheaper to live in than neighboring states like: 

• California: $64,835
• Colorado: $63,781
• Nevada: $54,054

Arizona is also cheaper than fellow retiree-hotspot, Florida ($60,204) as well as most of the northeastern states. 

That said, Arizona is not as cheap as other neighboring Southwestern states like Utah ($51,027) or New Mexico ($46,076). Arizona is also more expensive than Texas and most of the Midwest and Southern states. 

So, the answer to “Is Arizona affordable?” is… it depends. It’s not the absolute cheapest state to live in. But the cost of living isn’t too bad when you consider the beauty of the environment you’re moving to. This is especially true if you’re moving from an expensive state like California or New York.

Arizona’s affordability also depends on your lifestyle and spending habits. If you have a fairly modest lifestyle, then you can likely live in Arizona for much cheaper than $53,921.  Either way, the good news is that you can have plenty of fun in Arizona regardless of your tax bracket—speaking of taxes.

Tax Advantages of Arizona

Arizona is a fairly tax-friendly state, according to the experts at AARP. Here’s a quick snapshot of what you need to know about Arizona’s tax environment:

1. Income tax: 2.5% flat tax
2. Social Security taxes: None, although you’ll still need to pay federal taxes on SS. 
3. Estate taxes: None
4. Inheritance tax: None 
5. Property tax: Arizona charges an average of 0.63% of a home’s assessed value, which is relatively low compared to other states.

Your method for funding your retirement may also influence your decision to live in Arizona. For example, the fact that Arizona does not tax Social Security or estates makes the state very attractive to retirees. By living in Arizona, they’ll be able to enjoy more of their retirement income and pass a larger percentage on to their children. 

However, retirees will still be on the hook to pay tax on money withdrawn from pensions and 401(k)s, 403(b)s, and IRAs. 

Arizona’s Growing Economy

Another key benefit to living in Arizona is the state’s growing economy. Both Arizona’s population and economy have grown steadily over the past decade or so. This trend will likely continue if the state continues to emerge as a hub for remote workers.

Arizona’s population grew from roughly 6.4 million people in 2010 to 7.4 million in 2022, according to data from USA Facts. This marks population growth of 14.9%—roughly double the national average during the same period. A growing population almost always leads to more businesses, jobs, and economic activity. It can even lead to increasing home values for people who own property in Arizona.

As far as Arizona’s economy, a report by the Eller College of Management at the University of Arizona shows that Arizona’s economy was very strong in 2024. Sustained job and income growth helped fuel record-low unemployment, a strong job market, and abundant job opportunities. This strong economic growth is good news for anyone looking to move to Arizona.

Benefits of Living in Arizona

Residents of Arizona enjoy the following benefits:

Natural Beauty & Thriving Cities

One of Arizona’s biggest draws is its ravishing natural beauty. Arizona is the sixth-largest state physically which means that there’s plenty of wilderness to explore. Arizona is typically divided into two sections: southern and northern. Southern Arizona features a hot, desert climate and features attractions like:

1. Tucson: The second-largest city in Arizona (population of roughly 550,000) and home of the University of Arizona. 

2. Phoenix: The capital and largest city in Arizona (population of roughly 1,600,000) that’s known for its year-round sun and warm temperatures.

3. Desert Botanical Garden: A 140-acre botanical garden featuring beautiful desert plants nestled amid the red rocks of the Papago Buttes. This popular attraction is located right by the Phoenix metropolitan area.

4. Saguaro National Park: A national park that is home to large saguaro cacti, native to its desert environment.

5. Sonora Desert: A massive desert that stretches through Mexico and the Southwestern United States, known for being the hottest desert in the U.S.

If you’re looking for a climate that’s a bit more temperate, then you might prefer Northern Arizona over Southern Arizona. Northern Arizona can still get very hot (especially in the summer) but is a bit more temperate in general and even cold in the winter. The ecosystem is also less of a pure desert and features forests, mountain ranges, and canyons. A few of the major attractions in northern Arizona include:

1. Flagstaff: A northern Arizona city surrounded by mountains, desert, and ponderosa pine forests.

2. Sedona: A desert town near Flagstaff surrounded by red-rock buttes, steep canyon walls, and pine forests.

3. Grand Canyon National Park: An immense canyon that was carved by the Colorado River and is considered one of the seven natural wonders of the world. The Grand Canyon stretches an impressive 227 miles long and averages over 10 miles wide.

4. Petrified Forest National Park: A national park in the Navajo and Apache counties that’s known for its large deposits of petrified wood.

5. Monument Valley: A region of the Colorado Plateau on the Arizona and Utah border that’s known for its cluster of massive sandstone buttes.

Arizona is truly one of the few states where you can see some of the most beautiful ecosystems in the United States, if not the world. Additionally, many of Arizona’s cities are immersed within their environments and are only a short drive away from insane beauty. Even if you live in a major city, it doesn’t always feel like it.

For fans of the outdoors, this makes Arizona somewhat of a playground.

Abundant Outdoor Activities

There is no shortage of fun activities in Arizona for people who love the outdoors. Throughout the entire state, outdoor enthusiasts can enjoy hiking, biking, fishing, camping, golfing, swimming, kayaking, climbing, stargazing, and more—with each activity set against a stunningly pretty backdrop. 

Arizona is also known for its strong resort and spa culture. You’ll have no problem finding above-average spas or golf courses throughout the state.

The Northern part of Arizona also features a handful of ski resorts, which you wouldn’t expect in a state known for its deserts. There are so many outdoor activities in Arizona that it’s almost easier to name things you can’t do. 

Great Weather

Even though Florida is officially known as The Sunshine State, Arizona actually gets the most sunshine of any U.S. state throughout the year. Tucson, Phoenix, and Yuma regularly receive the highest number of sunny days per year. In particular, Yuma has a 90% chance of receiving sunshine on any given day, according to the World Population Review. This makes Arizona highly attractive for people who need to get their daily vitamin D.

With so much sun, it’s no surprise that annual precipitation in Arizona ranges from just 3 inches in the southwest at Yuma to around 40 inches in the White Mountains in east-central Arizona, per the Arizona State Climate Office. If you move to Arizona, then you won’t need to worry about rainy days ruining your plans. 

Higher Education 

Arizona is a fairly large hub for higher education. It is home to several major universities, including:

1. The University of Arizona
2. Arizona State University
3. Northern Arizona University

Each of these universities serves as a hub within their respective cities, helping to bring economic activity and foster a sense of community. For retirees, these universities create opportunities for continued learning, part-time work, health & wellness resources, volunteer activities, or social engagement. For families, these universities offer the opportunity for cheap in-state tuition for your kids. 

Great Sports Atmosphere

Sports fans have plenty of franchises to choose from when moving to Arizona. To start, both 

the University of Arizona and Arizona State University compete at a Division 1 level in many sports. If you live near either of these schools, you’ll be able to attend many different sporting events. 

There are also a handful of professional sports teams within Arizona, including:

1. Arizona Cardinals (Professional Men’s Football)
2. Arizona Diamondbacks (Professional Men’s Baseball)
3. Phoenix Suns (Professional Men’s Basketball)
4. Arizona Coyotes (Professional Men’s Hockey)
5. Arizona Rattlers (Professional Men’s Arena Football)
6. Phoenix Mercury (Professional Women’s Basketball)

Each of these franchises has its own respective season, training season, and promotional events which further adds to the list of fun things to do in Arizona.

Strategic Geographic Location

Arizona’s location in the southwestern United States means that you’ll be just a short flight away from many popular destinations. In just a few hours, you can hop on a flight and visit places like:

1. Las Vegas, Nevada
2. Los Angeles, California
3. San Diego, California
4. Colorado
5. Mexico
6. Texas

By living in Arizona, you’re putting yourself in a great position to visit some of the most-visited destinations in the world. 

Cons of Living in Arizona

While there are numerous benefits of living in Arizona, it’s important to paint a balanced picture of what life in the state looks like. Let’s jump into some of the downsides of living in Arizona.

Extreme Weather

Arizona’s hot, sunny climate can definitely be viewed as extreme, especially in the southern part of the state. During July and August, the summer heat can easily top 100 degrees which poses a significant risk for anyone venturing outside. Yes, there is immense natural beauty within the state. But, it’s worth remembering that you might not be able to go to visit certain parts of the state in the summer.

Arizona’s extreme heat and flat desert landscape also create the perfect scenario for extreme weather. Droughts, dust storms, wildfires, and even monsoons are fairly common in Arizona. If you decide to move here, then you’ll have to accept these events as just part of life.

Wildlife Encounters

Arizona is home to vast open deserts and wilderness. But, this means that it’s also home to the animals that live in these ecosystems. 

If you move to Arizona, then it’s likely that you’ll come across wildlife at some point. This includes venomous and highly dangerous animals like scorpions, snakes, and tarantulas. In certain Arizona State Parks, you can even find coyotes, black bears, and chuckwalla (giant lizards).

Poor Public Transportation

As the sixth-largest state, you’ll inevitably need to cover a lot of ground if you want to see all that Arizona has to offer. Unfortunately, Arizona’s public transportation system is not developed enough to avoid having a car. Major metropolitan areas may have buses and trains that can help you get around within the city. But, if you want to venture outside of a major hub, then you’re going to need your own car.

If you can’t handle long drives, then you may find it challenging to live in Arizona and the state’s natural beauty could lose a bit of its luster. For reference, it takes around 4 hours to drive from Arizona’s southernmost major city (Tucson) to its northernmost major city (Flagstaff). But, driving all the way through the state vertically takes closer to 7 hours. 

Fortunately, Arizona’s gas prices tend to stay fairly close to the nation’s average according to AAA. So, you won’t be breaking the bank will all this driving. But, keep in mind that gas prices can fluctuate at any given moment based on a number of factors.

Unimpressive K-12 Public Schools

Arizona is ranked #44 in education, according to U.S. News & World’s Ranking of State Education. While this state has plenty to offer, it’s not typically known for its strong school systems. However, this may not be a dealbreaker if you plan to move to Arizona for retirement, as your kids are presumably done with school. Additionally, a low ranking isn’t to say that there are no good schools within Arizona. If education is a top factor in your decision to move to Arizona, then you’ll likely want to do more research on the best school systems in the state.

Should You Move to Arizona?

So, is Arizona a good place to live? For us, that answer is an undisputed yes.

Arizona is home to abundant warm weather with an almost unlimited amount of fun things to see and do. On top of that, Arizona cities have been experiencing significant economic growth that will likely continue for years to come. As the cherry on top, this state is home to the Grand Canyon, one of the seven natural wonders of the world. 

Of course, Arizona may not be for everyone. The Grand Canyon state’s hot climate can be intense and can even lead to extreme weather events. If you hate being hot and the thought of coming across an unexpected snake makes you nervous, then you might not be fully comfortable moving to Arizona.

With all that said, you can only get so much information by reading blogs like this one. To get an even better idea of what it’s like to live in Arizona, just schedule a call with one of the professionals on the ARQ Wealth team. Our advisors will be able to offer personalized insight into the lifestyle and financial implications of moving to Arizona.

We hope that you’ve found this article valuable when learning whether or not Arizona is a good place to live!