Arizona reigns as a retirement hotspot, and unsurprisingly so. The Grand Canyon State boasts warm (and sometimes very hot) weather, breathtaking natural beauty and a culturally diverse population. Arizona isn’t as expensive a state as California, but as a whole, it’s pricier than other retirement havens like Florida or North Carolina, with a cost of living that’s 6% higher than the national average. The cost of housing is especially steep at 18% higher.
Check Out: America’s 50 Most Expensive Retirement Towns
Try This: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
Of course, there are cities in Arizona that are more affordable than others and vice versa. If you’re adhering to a tight budget in your golden years, there are some spots you’ll want to avoid, based on exorbitantly high costs of living.
In a new study, GOBankingRates found the top 13 cities in Arizona that frugal retirees should steer clear of due to astronomically high prices. These metros are ranked to show the highest total cost of living along with the highest expenditure costs.
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
13. Gilbert
Average single-family home value: $577,446
Average monthly mortgage cost: $3,336
Average monthly expenditures cost: $1,577
Total cost of living monthly: $4,913
Total cost of living annually: $58,954
Explore More: America’s 30 Safest and Wealthiest Retirement Towns
12. Peoria
Average single-family home value: $495,587
Average monthly mortgage cost: $2,863
Average monthly expenditures cost: $2,071
Total cost of living monthly: $4,934
Total cost of living annually: $59,214
11. Surprise
Average single-family home value: $432,225
Average monthly mortgage cost: $2,497
Average monthly expenditures cost: $2,487
Total cost of living monthly: $4,985
Total cost of living annually: $59,815
10. Chino Valley
Average single-family home value: $496,928
Average monthly mortgage cost: $2,871
Average monthly expenditures cost: $2,130
Total cost of living monthly: $5,001
Total cost of living annually: $60,016
9. Chandler
Average single-family home value: $536,681
Average monthly mortgage cost: $3,101
Average monthly expenditures cost: $1,906
Total cost of living monthly: $5,006
Total cost of living annually: $60,077
8. Anthem
Average single-family home value: $578,942
Average monthly mortgage cost: $3,345
Average monthly expenditures cost: $1,923
Total cost of living monthly: $5,268
Total cost of living annually: $63,221
7. Prescott
Average single-family home value: $612,198
Average monthly mortgage cost: $3,537
Average monthly expenditures cost: $1,907
Total cost of living monthly: $5,444
Total cost of living annually: $65,331
6. Queen Creek
Average single-family home value: $637,189
Average monthly mortgage cost: $3,681
Average monthly expenditures cost: $1,887
Total cost of living monthly: $5,569
Total cost of living annually: $66,824
5. Flagstaff
Average single-family home value: $686,102
Average monthly mortgage cost: $3,964
Average monthly expenditures cost: $2,095
Total cost of living monthly: $6,059
Total cost of living annually: $72,712
Be Aware: I’m Retired and Regret Moving to Arizona — Here’s Why
4. New River
Average single-family home value: $761,960
Average monthly mortgage cost: $4,402
Average monthly expenditures cost: $1,700
Total cost of living monthly: $6,103
Total cost of living annually: $73,233
3. Fountain Hills
Average single-family home value: $736,335
Average monthly mortgage cost: $4,254
Average monthly expenditures cost: $1,914
Total cost of living monthly: $6,168
Total cost of living annually: $74,016
2. Scottsdale
Average single-family home value: $932,824
Average monthly mortgage cost: $5,390
Average monthly expenditures cost: $1,807
Total cost of living monthly: $7,196
Total cost of living annually: $86,356
1. Paradise Valley
Average single-family home value: $3,412,226
Average monthly mortgage cost: $19,715
Average monthly expenditures cost: $1,904
Total cost of living monthly: $21,619
Total cost of living annually: $259,426
Methodology: For this study, GOBankingRates analyzed U.S. cities in Arizona to find the places that frugal retirees should avoid. Using the U.S. Census’ American Community Survey cities in Arizona were identified along with the total population, population ages 65 and over, total households, and household median income. With the cities identified the cost of living indexes were sourced from Sperling’s BestPlaces and include the grocery, healthcare, housing, utilities, transportation, and miscellaneous cost of living indexes. Using the cost of living indexes and the national average expenditure costs for retired households, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each location can be calculated. The livability index was sourced from AreaVibes for each location as supplemental information. The average single-family home value was sourced from Zillow Home Value Index for February 2025. Using the average single-family home value, assuming a 10% down payment, and using the most recent (March 13, 2025) national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. Using the average mortgage and average expenditure costs, the average total monthly and annual cost of living can be calculated. The cities were sorted to show the highest total cost of living as well as the highest expenditure costs, showcasing the places frugal retirees should avoid. All data was collected on and is up to date as of March 19, 2025.
More From GOBankingRates
7 McDonald’s Toys Worth Way More Today
4 Companies as Much as Tripling Prices Due To Tariffs
Use This Checklist to See if Your Family is Financially Secure
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: Frugal Retirees Should Steer Clear of These 13 Ultra-Expensive Arizona Cities
