Why You Can Still Afford To Retire in These 4 Arizona Cities

Arizona has long been a popular retirement destination, but if your retirement savings forecast is looking more like a dust storm than a sunny day, fear not as there are still some cities where affordability isn’t a thing of the past. Beyond the natural beauty of the national parks, golf courses and desert landscapes there are practical reasons, pros and cons of retiring in Arizona.

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GOBankingRates recently did a study to evaluate where there are still retirement locations that would be considered affordable in desert climates based on such factors as average home value, household income, mortgage payments and cost of living. What was discovered is that there are financial benefits of retiring in four popular Arizona cities: Bisbee, Tucson, Cottonwood and Tubac. Here’s a look at why you might consider retiring there.

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Bisbee

• Population of retirement age people, aged 65 and over: 1,875
• Percentage of the total population that is retirement-aged: 38%
• Median household income: $43,512
• Average house value: $228,221
• Average monthly mortgage costs: $1,360
• Average monthly expenditures: $1,724
• Average total monthly cost of living: $3,083

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Tucson

• Population of retirement age people, aged 65 and over: 82,147
• Percentage of the total population that is retirement-aged: 15%
• Median household income: $52,049
• Average house value: $341,784
• Average monthly mortgage costs: $2,036
• Average monthly expenditures: $1,661
• Average total monthly cost of living: $3,698

Cottonwood

• Population of retirement age people, aged 65 and over: 4,128
• Percentage of the total population that is retirement-aged: 34%
• Median household income: $43,273
• Average house value: $398,786
• Average monthly mortgage costs: $2,376
• Average monthly expenditures: $1,939
• Average total monthly cost of living: $4,315

Tubac

• Population of retirement age people, aged 65 and over: 842
• Percentage of the total population that is retirement-aged: 61%
• Median household income: $85,893
• Average house value: $524,182
• Average monthly mortgage costs: $3,123
• Average monthly expenditures: $1,618
• Average total monthly cost of living: $4,741

2 Reasons Arizona Retirement Might Not Be Out of Reach

As the Grand Canyon state, Arizona offers a retirement community and financial benefits to live out your golden years to the fullest. The cost of living in Arizona, as with anywhere, will fluctuate depending on your location, income taxes, healthcare expenses and more. However, here are three reasons you can still afford to call Arizona home when you retire.

Lower Cost of Living

Many cities in Arizona offer affordable living expenses, and on this list is Bisbee, known for its rich mining history and vibrant arts scene — it has a cost of living of $3,083. Housing is particularly affordable, allowing retirees to find unique and charming homes at reasonable prices with an average home value estimated to be $228,221. The small-town atmosphere and community-focused lifestyle also contribute to a lower overall cost of living.

Whereas Tucson provides a budget-friendly living environment, with housing costs, utilities and healthcare expenses all below the national average. Retirees can enjoy a comfortable lifestyle without stretching their finances as the average monthly expenditures come in around $1,661 and monthly mortgage payments are expected to be around $2,036.

You Can Stretch Your Social Security Benefits

Arizona’s retiree-friendly tax policies, including no state taxes on Social Security benefits and relatively low property taxes, make Cottonwood an attractive option, especially considering nearly 34% of the population is over the age of 65. The town’s cost-effective living expenses further enhance its appeal. Cottonwood’s scenic beauty and relaxed lifestyle add to its charm as a retirement destination.

Tubac benefits from Arizona’s favorable tax conditions, making it a financially appealing place for retirees. With its low property taxes and no taxes on Social Security benefits, Tubac allows retirees to maximize savings and has estimated monthly mortgage payments of about $3,123.

Final Take To GO

The bottom line is that retiring in Arizona has pros and cons depending on what you are looking for, but that doesn’t mean sacrificing quality of life for affordability in even popular cities. If the desert climate of sunny and dry weather seems like the right fit for you when you finally get to stop working, then it is good to know there still are places toward which you can financially strive. Whether it’s Bisbee and Tubac for their rich cultural heritage and artistic communities, or Tucson and Cottonwood offerings of museums, outdoor activities and scenic vineyards, several cities in Arizona offer retirees a fulfilling lifestyle without high expenses.

Methodology: GOBankingRates analyzed desert cities across the United States to find the most affordable places to retire. First GOBankingRates found cities across the United States that are in a desert environment from BestLiftOnline’s Best Desert Towns, TheTravel’s Gorgeous Desert Towns in the US, Thrillisaint – Best Desert Towns to Visit in America, TravelAndLeisure’s Best Desert Towns Around the US, TripAdvisor’s Small Desert Towns in America, and USAWelcome’s Explore USA Desert Cities. For each city, the cost of living index was sourced from Sperlings BestPlaces and the national average expenditure costs for retired residents were sourced from the Bureau of Labor Statistics Consumer Expenditure Survey. The average single-family home value was sourced from the Zillow Home Value Index and by assuming a 10% downpayment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. Using the mortgage and expenditure costs, the total monthly cost of living can be calculated. The livability index for each city was sourced from AreaVibes. The cities were sorted to show the cheapest total cost of living to find the most affordable places to retire in the desert. All data was collected and is current as of July 11, 2024.

This article originally appeared on GOBankingRates.com : Why You Can Still Afford To Retire in These 4 Arizona Cities