It’s no secret that California has become one of the most expensive states in the country. Hundreds of thousands of Golden State residents have abandoned the state to find more affordable housing, reduced taxes, and a lower cost of living elsewhere.
But now, even wealthy Californians are ditching the state to keep the money they do have. These residents are simply choosing states, like Arizona, with lower taxes, but they are still living the high life in the richest city in the state.
Why Are the Wealthy Leaving California?
California was once considered the ideal state for America’s wealthy. With perfect weather, pristine beaches, luxury mansions, and shops marketed for celebrities, California had it all.
However, now, the cost of living in California has grown exponentially, houses are wildly more expensive than in most other states, and the taxes are through the roof. Therefore, even the wealthy have realized they can be richer in almost any other state.
Why Are Californians Moving to Arizona?
Californians are moving to states like Texas, Florida, Nevada, Washington, and Arizona to enjoy an even more luxurious life with their money.
Arizona has quickly become one of the most popular destinations because it is far cheaper but also still provides the warm weather, gorgeous landscapes, and opulent lifestyle that California residents are accustomed to.
Let’s Compare: Arizona vs. California
According to one report, the current cost of living in California is a whopping $53,082, but in Arizona, it’s only $44,875 per year. Additionally, the median home price in California is almost unbelievable at $904,210, compared to Arizona’s $433,271.
It’s also important to note that California’s average combined tax rate is 8.5%, while Arizona’s is only 8.3%, which can make a substantial difference for high earners.
The Richest City in Arizona
Arizona is far more affordable than California, but it also has many of the same draws, including beautiful weather, picturesque landscapes, and even lavish shops and services—but only if you know where to look for them.
Arizona’s richest city, Paradise Valley, is known for having all of the above and is, therefore, attracting thousands of California’s elite.
Arizona’s Paradise Valley
Paradise Valley, Arizona, is home to several exclusive, members-only clubs, breathtaking golf courses, high-end stores, and opulent pools.
Not to mention the luxurious spas, nearby hiking, professional sporting events, art galleries, and world-rated restaurants. In other words, Paradise Valley is quite literally paradise for the affluent.
The Homes in Paradise Valley Are Shockingly Beautiful
While there are a few modest homes in Paradise Valley, the majority of the real estate market is made up of mansions that even celebrities would be excited to live in.
Many of these mansions cost somewhere between $15 and $50 million, but they are unquestionably some of the most beautiful, enormous, and perfectly designed homes one could ever see.
Who Is Moving to Paradise Valley?
Experts have noted that many wealthy retirees choose Paradise Valley to live out their later years. With the wide variety of activities, it really is the perfect place for active, affluent seniors.
However, Paradise Valley doesn’t have the retiree vibe that some Florida towns do. It still feels hip, young, and certainly exclusive.
California’s Young Entrepreneurs Are Moving to Paradise Valley
For these reasons, even many of California’s young entrepreneurs with money to burn are moving to Paradise Valley.
Add to the list several celebrities, including former vice president Dan Quayle, famous Olympian Michael Phelps, rock legend Alice Cooper, Sandra Day O’Connor, Muhammad Ali, Shaquille O’Neal, Mike Tyson, and the great Stevie Nicks, who call Paradise Valley home.
Paradise Valley Is Only 20 Minutes From Phoenix
Another enticing aspect of Paradise Valley, Arizona, is that, while it feels like the middle of nowhere, it’s only 20 minutes away from Phoenix.
That means the uber-wealthy and celebrity population can be in the popular metropolis or at the Phoenix Sky Harbor International Airport in no time at all.
The Beverly Hills of Arizona
It should come as no surprise that many call Paradise Valley the Beverly Hills of Arizona, and as more and more wealthy Californians move to the idyllic Phoenix suburb, it will only become more like the famous neighborhood.
Experts believe this once-small town will soon have absolutely everything well-to-do Americans want and may soon become even more famous than the original Beverly Hills.
California’s Wealthy Population Is Dropping
From just 2020 to 2023, California lost 17,825 residents and gained 7,371. While many Americans are still moving to the Golden State in hopes of the perfect life they see in the movies, most of those who have abandoned the state are in the higher tax bracket.
This lack of tax income has and will continue to affect California’s ongoing budget crisis, while states like Arizona will profit from their new wildly wealthy residents.
