How Much Money Will Arizona Retirees Spend on Housing in 2024?
Written by
Martin Dasko
Edited by
Amber Barkley
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If you’re looking to retire in the near future, you’ve likely explored various options for where you’ll want to spend your golden years. With plenty of sunshine and retirement communities available, many retirees have been considering moving to Arizona. GOBankingRates spoke with experts to give retirees a sense of how much money they may have to spend on living in Arizona in 2024.
Here’s a look at much can retirees expect to spend on housing in Arizona this year.
What You Should Know About Retiring in Arizona
“Arizona is a great place to live and retire, because the state offers nearly endless sunshine, an average-to-low cost of living and a favorable business environment,” said Tom Wheelwright, CPA, CEO of WealthAbility and author of the bestselling books “The Win-Win Wealth Strategy” and “Tax-Free Wealth.”
“It also provides some valuable tax incentives to retirees,” he said. “For example, Arizona doesn’t tax Social Security benefits. Arizona also provides several forms of property tax relief for seniors. There is a Senior Citizen Property Tax Refund Credit and a freeze on the property valuation. However, there are income limits for both.”
“Everyone is so different when it comes to retirement preferences, but the main thing that I see retirees looking for now is views,” said Eddie Lack, a top-producing Arizona realtor with over $100 million in real estate sales. “Mountain views and a nice pool are at the top of the list for retirees looking to move to Arizona.”
With increased demand — as many retirees seek to take advantage of Arizona’s favorable weather with those views and pools — you may see the prices of these types of homes go up in 2024.
The Arizona Real Estate Market
Lack spoke on the pricing when it comes to Arizona housing. He cited the following average prices in a few cities for retirees who are looking at moving.
- Mesa: $450,000
- Gilbert: $550,000
- Scottsdale: $1,000,000
Zillow offers similar average home values — an average of $426,600 in Mesa, $563,000 in Gilbert and $790,000 in Scottsdale.
If you’re looking to retire in Arizona, you should search through real estate listings and work with a local agent who can help you track prices. If interest rates come down in 2024, prices could increase in Arizona as demand shoots up with more people flocking to the state.
The Best Place in Arizona for Retirees
“The best location for retirees at the moment is Terravita, a luxury neighborhood in North Scottsdale,” Lack said. “It has golf, pickle ball and many community centers and bars, making it very popular with retirees.”
According to Realtor.com, the homes currently listed for sale in this community have a median listing price of $1,097,500.
The Amount Needed To Retire in Arizona
According to a study conducted by GOBankingRates in December, here’s how much you would need to retire in Arizona.
- Annual cost of housing: $15,059
- Annual cost of living: $63,600
- Cost of living after using average Social Security income: $41,463
- How much you need in savings to retire: $1,036,567
The Importance of Factoring in Inflation
“Unfortunately, a big tax is hiding in plain sight that Arizonans — like all Americans — can’t avoid: inflation,” said Wheelwright. “Inflation erodes wealth faster than most people anticipate, and their retirement savings often can’t keep up. Many people had relatively low inflation factored into their retirement plans, not the 5% to 8% we saw through much of 2021 and 2022 or even the 4.1% average we saw in 2023.”
If you plan on moving to Arizona in 2024 to retire, you’ll want to work with your financial advisor to ensure that your portfolio can keep up with inflation so that you can afford to spend your golden years in this state.
Arizona Retirement Tax Planning
“Tax planning can play a significant role in helping your retirement plan grapple with inflation,” Wheelwright said. “Taxes are typically one of the biggest expenses in people’s budgets, so reducing them is an excellent way to increase your cash flow so that you can continue adding more to your future retirement funds or decrease what’s going out the door, if you’re already retired.”
Wheelwright added further details on retirement taxes: “The most widely known type of incentive is qualified retirement plans, such as IRAs, 401(k)s and pension plans. What’s less well known is that the government also offers tax incentives on other types of investments that can play a significant role in Arizonans’ retirement plans. These can range from owning a business, investing in real estate or even venturing into the energy or agriculture sectors.
“For example, if you donate stock or cryptocurrency that has gone up in value to charity, you don’t have to pay tax on the capital gain. Plus, in Arizona, you may be eligible for a tax credit of over $1,000 on a joint return for gifts to foster care charities, over $800 for gifts to other qualified charities and over $1,300 for gifts to qualified school tuition programs.”
Closing Thoughts
If you want to retire to Arizona, it’s a good idea to work with a professional financial advisor to help you review your finances to ensure that you can live a comfortable lifestyle in retirement — including finding a home that is perfect for your golden years.
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