10 Arizona Cities Where Most Retirees Can No Longer Afford To Live

Arizona has long been a favorite destination for retirees, thanks to its warm weather and scenic landscapes. But as housing prices climb and living costs surge in some of its most popular cities, many retirees are feeling the financial squeeze.

If you're looking to set yourself up for retirement without sacrificing quality of life, it may be time to take a closer look at which Arizona cities are no longer as affordable as they once were.

Editor's note: All cost of living data provided by PayScale and all housing values provided by Zillow unless otherwise noted.

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Cost of living: 20% higher than the national average

Median home value: $56,937

Gilbert is a growing suburb outside of Phoenix with a strong sense of community. This area is regarded as safe and family-friendly, with lots to do, including farmers' markets, cultural events, and recreational activities, making it a perfect spot for retirees.

However, Gilbert's consistent growth and popularity may be the reason the median home value has jumped by more than 50% in recent years.

Cost of living: 11% higher than the national average

Median home value: $480,835

Peoria has become a popular spot for active retirees. It's home to several parks, golf clubs, and even a performing arts center. With the Mayo Clinic nearby, it is no surprise that aging adults would seek to settle here.

While the overall cost of living in Peoria isn't too bad, housing prices have jumped in the last few years. Since cost of living adjustments haven't kept up with inflation, it may make it hard for retirees on a fixed income to afford the ever increasing prices here.

Cost of living: 16% higher than national average

Median home value: $499,615

GoBankingRates has listed Oro Valley as the safest, wealthiest retirement town in the United States. With low crime rates and a significant population over 65, it's no surprise this has become a retirement hot spot.

However, with the median home price over $500,000 and the high cost of living, retirees on a fixed income may not be able to afford to live here.

Cost of living: 23% higher than national average

Median home value: $594,576

Prescott is nestled in central Arizona, where the climate is mild and the landscape is beautiful. Here, retirees have access to excellent medical care and endless outdoor activities.

Unfortunately, housing and other costs in Prescott are quite high compared to the average retiree income of just over $40,000. And, thanks to the demand for housing in this area, it's hard for retirees to stay competitive (and afford prices) when navigating the real estate market.

Cost of living: 22% higher than national average

Median home value: $655,551

Fountain Hills is a community located not too far from big cities like Scottsdale and Phoenix. Families love this place for its small-town charm, top-rated schools, and safe neighborhoods, qualities that make people more than willing to pay a premium to live here.

But, for retirees who are working with smaller household budgets after leaving the workforce, it may be hard to keep up with the cost of living in this town.

Cost of living: 24% higher than national average

Median home value: $452,829

For outdoor enthusiasts, retiring near a lake sounds like a dream. While living in a town affectionately known as Arizona's playground may offer nearly unlimited activities and recreation, rising costs make it unaffordable for many retirees.

It looks like a rise in short-term vacation rentals could be the reason Lake Havasu has become too expensive for retirees, as many investors have snapped up properties in hopes of turning a profit, forcing residents to pay much higher housing costs.

Cost of living: 12% higher than the national average

Median home value: $417,937

From endless activities to a sunny climate year-round, it's no surprise that retirees love this community.

Almost 20 years ago, a resort-style retirement community built 9,500 homes, occupying 4,000 acres of Surprise. And while this community has amazing amenities, its existence could be the reason for the increasing costs of living here, since it's become such a high-demand area for those looking to spend their golden years in the Grand Canyon State.

Cost of living: 23% higher than the national average

Median home value: $489,669

For retirees looking for a more rural, peaceful retirement, Chino Valley fits the bill. However, rural living can cost more due to limited access, since you have to travel further for everything from groceries to household goods.

But that's not the only thing driving up prices for retirees in this area. Many people pay more when they purchase a property because of the home's and property's square footage. Larger lot sizes are the norm in Chino Valley, which translates into bigger price tags.

Cost of living: 16% higher than the national average

Median home value: $517,058

With endless sunshine and at least 10 golf courses to choose from, this city is a golf enthusiast's dream. Chandler is a desirable place to live, and like a lot of Phoenix suburbs, this is impacting the cost to live there.

Homeowners are paying a little bit more in many Chandler neighborhoods thanks to the presence of so many homeowners associations (HOAs). The dues in the area can be high, and in some neighborhoods, that can add as much as $300 extra dollars a month onto housing bills. That may not sound like a lot at first, but for those working with a fixed income, every penny counts.

Cost of living: 19% higher than the national average

Median home value: $646,275

Flagstaff is considered a mountain town with a milder climate than the rest of Arizona. Here, retirees can enjoy pine trees, hiking, and even snow.

However, the town's natural beauty may be driving up costs. That's because Flagstaff is surrounded by federal and tribal land, which prevents the town from growing. This size limit has driven up the housing costs, making this area difficult to afford.

As Arizona's cost of living continues to rise in certain cities, it's more important than ever to weigh your options carefully and make smart money moves.

A dream retirement doesn't have to come with a hefty price tag. Before making any big moves, take a moment to assess your retirement readiness and make sure the lifestyle you envision aligns with your financial reality.