Frugal Retirees Should Steer Clear of These 13 Ultra-Expensive Arizona Cities
Written by
Nicole Spector
Edited by
Molly Sullivan
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Arizona reigns as a retirement hotspot, and unsurprisingly so. The Grand Canyon State boasts warm (and sometimes very hot) weather, breathtaking natural beauty and a culturally diverse population. Arizona isn’t as expensive a state as California, but as a whole, it’s pricier than other retirement havens like Florida or North Carolina, with a cost of living that’s 6% higher than the national average. The cost of housing is especially steep at 18% higher.
Of course, there are cities in Arizona that are more affordable than others and vice versa. If you’re adhering to a tight budget in your golden years, there are some spots you’ll want to avoid, based on exorbitantly high costs of living.
In a new study, GOBankingRates found the top 13 cities in Arizona that frugal retirees should steer clear of due to astronomically high prices. These metros are ranked to show the highest total cost of living along with the highest expenditure costs.
13. Gilbert
- Average single-family home value: $577,446
- Average monthly mortgage cost: $3,336
- Average monthly expenditures cost: $1,577
- Total cost of living monthly: $4,913
- Total cost of living annually: $58,954
12. Peoria
- Average single-family home value: $495,587
- Average monthly mortgage cost: $2,863
- Average monthly expenditures cost: $2,071
- Total cost of living monthly: $4,934
- Total cost of living annually: $59,214
11. Surprise
- Average single-family home value: $432,225
- Average monthly mortgage cost: $2,497
- Average monthly expenditures cost: $2,487
- Total cost of living monthly: $4,985
- Total cost of living annually: $59,815
10. Chino Valley
- Average single-family home value: $496,928
- Average monthly mortgage cost: $2,871
- Average monthly expenditures cost: $2,130
- Total cost of living monthly: $5,001
- Total cost of living annually: $60,016
9. Chandler
- Average single-family home value: $536,681
- Average monthly mortgage cost: $3,101
- Average monthly expenditures cost: $1,906
- Total cost of living monthly: $5,006
- Total cost of living annually: $60,077
8. Anthem
- Average single-family home value: $578,942
- Average monthly mortgage cost: $3,345
- Average monthly expenditures cost: $1,923
- Total cost of living monthly: $5,268
- Total cost of living annually: $63,221
7. Prescott
- Average single-family home value: $612,198
- Average monthly mortgage cost: $3,537
- Average monthly expenditures cost: $1,907
- Total cost of living monthly: $5,444
- Total cost of living annually: $65,331
6. Queen Creek
- Average single-family home value: $637,189
- Average monthly mortgage cost: $3,681
- Average monthly expenditures cost: $1,887
- Total cost of living monthly: $5,569
- Total cost of living annually: $66,824
5. Flagstaff
- Average single-family home value: $686,102
- Average monthly mortgage cost: $3,964
- Average monthly expenditures cost: $2,095
- Total cost of living monthly: $6,059
- Total cost of living annually: $72,712
4. New River
- Average single-family home value: $761,960
- Average monthly mortgage cost: $4,402
- Average monthly expenditures cost: $1,700
- Total cost of living monthly: $6,103
- Total cost of living annually: $73,233
3. Fountain Hills
- Average single-family home value: $736,335
- Average monthly mortgage cost: $4,254
- Average monthly expenditures cost: $1,914
- Total cost of living monthly: $6,168
- Total cost of living annually: $74,016
2. Scottsdale
- Average single-family home value: $932,824
- Average monthly mortgage cost: $5,390
- Average monthly expenditures cost: $1,807
- Total cost of living monthly: $7,196
- Total cost of living annually: $86,356
1. Paradise Valley
- Average single-family home value: $3,412,226
- Average monthly mortgage cost: $19,715
- Average monthly expenditures cost: $1,904
- Total cost of living monthly: $21,619
- Total cost of living annually: $259,426
Methodology: For this study, GOBankingRates analyzed U.S. cities in Arizona to find the places that frugal retirees should avoid. Using the U.S. Census’ American Community Survey cities in Arizona were identified along with the total population, population ages 65 and over, total households, and household median income. With the cities identified the cost of living indexes were sourced from Sperling’s BestPlaces and include the grocery, healthcare, housing, utilities, transportation, and miscellaneous cost of living indexes. Using the cost of living indexes and the national average expenditure costs for retired households, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each location can be calculated. The livability index was sourced from AreaVibes for each location as supplemental information. The average single-family home value was sourced from Zillow Home Value Index for February 2025. Using the average single-family home value, assuming a 10% down payment, and using the most recent (March 13, 2025) national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. Using the average mortgage and average expenditure costs, the average total monthly and annual cost of living can be calculated. The cities were sorted to show the highest total cost of living as well as the highest expenditure costs, showcasing the places frugal retirees should avoid. All data was collected on and is up to date as of March 19, 2025.
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