7 Small Towns in Arizona Realtors Predict Will Soon Be Retirement Hot Spots

Phoenix's sunshine and golf courses have long drawn retirees. Yet with median home listing prices approaching $450,000, the city is increasingly out of reach for seniors looking for more affordable retirement options. Instead, their retirement plan now focuses on more affordable markets.

Still, a less expensive home doesn't always translate into a cheaper retirement.

"These are conversations we're having around our own kitchen table, too," says Michelle Kalina, a global real estate adviser with Sotheby's and realtor partner with UNLISTED, whose husband plans to retire in early 2027.

Kalina recommends starting with a practical question: "What do you want your everyday life to look like?" For some retirees, that means boating or hiking. For others, proximity to medical specialists, an active social calendar, or a manageable monthly budget takes priority.

Here are seven Arizona towns and communities worth considering.

Editor's note: All housing data comes from Zillow, unless otherwise stated.

Kingman

Average home price: $273,927

Typical July high: 99°F

Nearest hospital: Kingman Regional Medical Center (within town)

Elevation helps distinguish Kingman from the lower desert. At about 3,300 feet, it generally experiences cooler temperatures than Phoenix. Cameron Walker, a real estate expert and manager of the agent network at Clever Real Estate, says Kingman is worth investigating if you're looking for more affordable prices than Phoenix.

However, he cautions that lower housing costs don't tell you whether the town suits an older buyer. Anyone who expects to spend more time indoors during hot weather should compare actual electricity costs before picking a home in Kingman.

Bullhead City

Average home price: $299,303

Typical July high: 111°F

Nearest hospital: Western Arizona Regional Medical Center (within town)

Situated along the Colorado River, Bullhead City sits across it from Laughlin, Nevada, giving residents access to another community's restaurants, entertainment, and recreational attractions.

Walker says buyers drawn to Bullhead City and neighboring Lake Havasu City tend to value outdoor recreation and a less hectic lifestyle. But he emphasizes that air conditioning is essential for much of the year, with summer electricity costs putting pressure on retirees' budgets.

Lake Havasu City

Average home price: $459,245

Typical July high: 109°F

Nearest hospital: Havasu Regional Medical Center (within town)

Kalina particularly likes Lake Havasu City's lifestyle appeal. "For someone who loves boating, being near the water and spending time outdoors, it offers a different version of Arizona than people might picture when they think of Phoenix or Scottsdale," she says.

That lifestyle comes at a price. Retirees who mainly want affordable housing may find better value elsewhere, particularly after factoring in cooling costs, insurance, and boating expenses.

Sierra Vista

Average home price: $300,271

Typical July high: 92°F

Nearest hospital: Canyon Vista Medical Center (within town)

Sierra Vista offers retirees a different experience from the low desert. Located in southeastern Arizona, the community sits near the Huachuca Mountains, with hiking, birdwatching, and other outdoor recreation nearby.

Walker sees the community as a potential fit for retirees who want to keep housing costs manageable while enjoying the great outdoors. However, he recommends assessing health care access before committing to a move.

Prescott

Average home price: $592,855

Typical July high: 90°F

Nearest hospital: Yavapai Regional Medical Center (within town)

Prescott's higher elevation keeps temperatures lower than Phoenix, while the surrounding landscape offers hiking trails, lakes, and mountain scenery.

Kalina says Prescott appeals to buyers seeking established communities with recreation and amenities. Walker likewise identifies its milder summer temperatures and outdoor opportunities as major draws.

Still, the city's housing prices may undermine the affordability argument for retirees moving away from Phoenix.

Payson

Average home price: $443,575

Typical July high: 93°F

Nearest hospital: Banner Payson Medical Center (within town)

Surrounded by the Tonto National Forest and known for its pine-covered landscape, Payson offers hiking, fishing, and access to outdoor activities. The problem is housing costs, which are similar to Phoenix.

Buyers should also consider winter weather, heating expenses, and the drive to larger medical centers before settling on the town.

Oro Valley

Average home price: $493,744

Typical July high: 100°F

Nearest hospital: Oro Valley Hospital (within town)

Unlike the smaller communities farther from major population centers, Oro Valley offers access to a broader metropolitan area without requiring residents to live in central Tucson.

Housing in Oro Valley is not particularly affordable. Michael Oliver, owner and broker at Oliver Realty, explains why: "In Oro Valley at $500K and above, many [...] owners are second-home owners, not landlords, and communities like SaddleBrooke draw these buyers year after year."

Kalina says the town also appeals to people seeking established communities with recreation and amenities.

The Arizona retirement costs that deserve a second look

Arizona's relatively low property taxes are a genuine attraction. The Tax Foundation reports an effective property tax rate of 0.48% for owner-occupied housing, one of the lowest rates nationally.

Yet property taxes are only one part of a retirement budget. Four other issues deserve particular attention before you choose a town:

• Summer electricity bills
• Homeowners insurance
• Arizona's 2.5% income tax
• Water supply uncertainty

Bottom line

Arizona still offers retirees plenty of reasons to consider a move, from its relatively low property taxes to its outdoor recreation and varied communities. But the best destination depends on what you want from retirement and how much you're willing to pay.

As Walker puts it, the right place is where the costs and expenses add up to a reasonable amount over the long term.

To stretch your retirement dollars further, he advises testing a destination before committing. Renting for a few weeks during the hottest part of the year gives you a realistic sense of the climate and cooling requirements. Also, explore neighborhoods, try the routes to your preferred doctors, and determine whether the local lifestyle suits you.

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