Trump Economy Begins: How Oro Valley and 5 Other Arizona Retirement Hot Spots Could Fare

Charles T. Peden / Shutterstock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Many in Arizona’s retirement communities are bracing for potential economic shifts under President Trump’s policy blueprint. But retirement landscapes in Arizona communities have already been dramatically altered, from tax policy to healthcare reforms, by the new administration’s agenda. For the state’s 65-and-older population, those stakes are high.

In this article, we take a look at the challenges and opportunities several Arizona retirement communities face as they adjust to the changing projections of the economy under Trump’s leadership.

Oro Valley

Oro Valley sits at No. 1 on GOBankingRates‘ list of the Top 15 Retirement Towns in America and here’s why: safety, awesome views and being highly active. Residents of Oro Valley have a better than average income for retirees at $52,098 which is higher than the national average of $27,617, so they stand to weather potential economic changes better.

Tax cuts on the horizon in places like Oro Valley could be good for wealthy retirees like Trump. But Trump’s immigration policies could cause the city to struggle to hang onto its healthcare workers. It could hit the nursing home industry hard, given that many of these workers are immigrants. 

Prescott

Prescott is another top retirement location where Trump’s economic policy could have a mixed effect. Immigration restrictions could strain the workforce in healthcare and service industries, crucial for seniors. The U.S. Census Bureau reports that 40.5% of its population living in homes is 65 years old and older. For this demographic trend the implications are that the area may have problems related to their healthcare and services due to immigration restrictions.  

Trump has plans to protect Social Security and Medicare, which could give retirees financial relief, though those plans could mean slashing these programs to retirees’ income. Additionally, tariffs on Mexican imports would also increase food prices, which could strain the purse of Prescott’s elderly residents.

Lake Havasu City

Under Trump’s second term, retirees in Lake Havasu City could face significant changes. If Trump’s proposed policies are implemented, they could directly impact the financial security of retirees. The city’s economy is stable but at risk from policy change impacting the work of working retirees; BLS figures show a 4.4% unemployment rate. 

While Trump’s plans to gut tax returns on Social Security benefits would help some, economic shifts such as changes to healthcare and the potential for labor shortages from immigration policies may not have made this popular retirement destination cheaper and better for life for many of the retirees flocking here.

Apache Junction

Relative to Oro Valley or Scottsdale, Apache Junction is one Arizona that is more than a little affordable, sporting a cost of living only slightly above the national average. This budget-friendly town appeals to retirees seeking an active lifestyle near the Superstition Mountains without breaking the bank. But there aren’t as many healthcare options as there are in bigger cities.

Trump’s proposed elimination of taxes on Social Security could benefit Apache Junction residents, by potentially increasing after-tax income for some retirees. Furthermore, Trump’s efforts to boost domestic manufacturing might bring economic opportunities that indirectly support local businesses and services catering to retirees.

Scottsdale

Scottsdale, a haven for wealthy retirees, could see significant benefits if President Trump renews TCJA which is set to expire this year. The proposed renewal of the TCJA could benefit high-income earners, but it’s estimated that it would also increase taxes for all other income groups. 

However, the city’s real estate market might face volatility due to potential changes in mortgage interest deductions. Furthermore, Trump’s promise to reduce regulations could also spur development in Scottsdale, potentially increasing housing supply but also raising concerns about environmental impact. His plan for further tax cuts could benefit wealthy retirees in places like Scottsdale.

Sun City

Sun City, the nation’s first 55-plus community, could see significant impacts from Trump’s economic policies. According to Arizona Demographics, 75.4% of its population is aged 65 and over, and as such changes to Medicare and Social Security will be felt acutely here. Especially since the community’s economic stability hinges on balancing fiscal conservatism with the healthcare needs of its aging population. 

NBC News reports that Trump’s proposed policies like repealing parts of the Inflation Reduction Act and implementing Medicaid block grants could increase out-of-pocket costs for retirees. This shift could also increase privatization within Medicare, potentially reducing coverage options or raising costs for beneficiaries who prefer traditional Medicare.

Sun City residents must closely monitor Trump’s healthcare agenda, particularly regarding Medicare and drug costs, as it unfolds.

Share This Article: