Wealthy Californians are flocking to Paradise Valley, Arizona, also known as the Beverly Hills of Arizona, in search of privacy, a luxurious lifestyle, lower taxes, and a higher quality of life. Movers from cities like San Francisco, Los Angeles, and San Diego have been drawn to this affluent suburb nestled between Phoenix and Scottsdale in Maricopa County.
Ken Sawyer, co-founder of Saints Capital, originally planned to stay in California but changed his mind after his second home in Napa was destroyed in the 2017 wildfires. Instead of rebuilding, Sawyer and his wife decided to look for a new home outside of California. After considering various cities, they settled on Paradise Valley, Arizona, and have been living there ever since.
Sawyer is just one of many wealthy individuals who have traded Silicon Valley for Paradise Valley. Census county-to-county migration data reveals that Santa Clara County, home to Silicon Valley, has been experiencing a steady loss of residents to Arizona. From 2011 to 2015, Maricopa County welcomed an average of 1,127 residents from Santa Clara County each year. This number increased by nearly 38% to 1,555 from 2016 to 2020.
Paradise Valley has gained its reputation as the Beverly Hills of Arizona due to its exclusive nature and allure. The community offers spacious lots, privacy, and a prime location that is only a short drive away from city amenities such as shopping, restaurants, and nightlife. Additionally, Paradise Valley boasts stunning natural beauty, minimal traffic compared to California, and lower taxes.
Over the years, Paradise Valley has attracted celebrities like Muhammad Ali and Stevie Nicks, as well as several billionaires, including Bennett Dorrance and Bruce Halle. Recent data shows that affluent individuals from California, particularly from cities like Los Angeles and Orange County, are making the move to Paradise Valley.
Real estate agent Joan Levinson, who helped Sawyer find his Paradise Valley home, explains that Californians are drawn to the desert oasis for its high quality of life and lower taxes. While the median sale price in Paradise Valley is higher than in San Francisco and Los Angeles, homeowners are saving significantly on taxes by making the move.
Taylor Graber and his wife also chose to relocate from San Diego to Scottsdale, Arizona, within Maricopa County. Graber estimates that their household income is taxed at 9.3% in California, while in Arizona, the tax rate is only 4.5%. The potential savings are substantial and make Arizona an appealing option for many.
In addition to the financial benefits, Arizona is experiencing a growing tech scene, making it easier for individuals like Sawyer to transition. The state’s proximity to California and the increasing presence of the tech industry are factors that contribute to the appeal of Arizona as a relocation destination.
While Paradise Valley residents like Sawyer acknowledge the allure of California and recognize its potential, they emphasize the need for improved public services, including education, safety, and infrastructure. Until then, they are content with their decision to reside in Paradise Valley, as it offers a superior quality of life for themselves and their families.
The exodus of wealthy Californians to Paradise Valley is not limited to Santa Clara County or even Silicon Valley. Los Angeles County, with its population of over 9.7 million, has seen an average annual loss of 8,614 residents to Maricopa County from 2016 to 2020, representing a 48% increase compared to the years 2011 to 2015.
According to Arizona real estate agent Kelly Jones, Paradise Valley remained a hidden gem for a considerable amount of time, with prices remaining relatively stable even as the rest of the country experienced a rise in real estate prices during the early stages of the COVID-19 pandemic. However, Paradise Valley eventually joined the upward trend.
The allure of Paradise Valley’s exclusivity and its relatively lower prices, when compared to cities like San Francisco and Los Angeles, are contributing factors to the increased interest in the area. Furthermore, the allure of lower taxes in Arizona, compared to California, is drawing more individuals to make the move.
While many are embracing the opportunities that Paradise Valley and Arizona have to offer, some, like Sawyer, still hold affection for California and are open to the possibility of returning if circumstances improve. For now, however, they are content living in Paradise Valley and enjoying the benefits it provides.
The influx of wealthy Californians to Paradise Valley signifies a growing trend of individuals seeking a change of scenery in pursuit of a better quality of life, lower taxes, and the appeal of emerging opportunities in different locations. Whether this trend will continue or shift in the future remains to be seen, but for now, Paradise Valley stands as an attractive alternative for those looking for a new chapter in their lives.
