Why Are People Moving To Arizona?
Have You Noticed The Influx Of New Residents To The Grand Canyon State? You May Be Wondering: Why Are People Moving To Arizona?
According to some data, post-COVID-19 interstate migrants are mostly “uptown individuals” in their mid-30s or millennials looking to start a family. Why are people moving to Arizona? Well, this data starts to answer that question. More on that in a minute.
These millennials are the prime market for suburban developments which are affordable and not necessarily close to the central business districts. This is partly driven by how the pandemic has emphasized the importance of flexibility in where and how people work.
We can expect more movement from people in this category as the U.S. Census Bureau estimates that there will be a 7.1% increase in mid-30s millennials by 2025 while the rest of the population is expected to grow by only 3.8% in the same period.
So, Why Are People Moving To Arizona?
The reasons are unsurprisingly straightforward: relatively lower cost of living, tax breaks, sunny weather, and a cosmopolitan vibe minus the hustle and bustle of bigger cities. Data shows that Arizona is not exactly a cheap state to live in but if you’re moving from a state like California or New York, you will appreciate the significant difference.
The average cost of living is $35, 200 per year, and the top three cost components are housing, healthcare, and food. According to MERIC’s 2021 Cost of Living Index, Arizona is ranked 36th when it comes to U.S. states with the lowest cost of living.
Housing is a hot issue right now, with median sale prices in Phoenix going up 24.4%, from $325,000 in January last year to $404,300 in October of the same year. The demand is outpacing supply, which is driving intensely competitive bidding wars among buyers.
However, it is important to note that while Phoenix and Tucson are the top-of-mind places for those moving to Arizona, there are many other beautiful communities in the Grand Canyon State that are potentially less crowded, and therefore more likely to have a lower cost of living.
Arizona does not also have an estate tax, which makes it attractive for retirees. Property tax is capped on owner-occupied homes. The rate is 0.62% annually based on the assessed value of your house, which is 0.45% less than the national average.
The income tax is offered in graduated brackets, with the top marginal tax rate at 8% with the lowest at 2.59%
If you enjoy the outdoors, then you’ll love the fact that Arizona has 286 sunny days, which is significantly more than the national average of 205.
Moving To the Arizona Checklist
The trend of people moving to Arizona is not exactly new. One analysis found that between 2010 to 2018, 2.2 million people moved to Arizona, but at the same time, 1.7 million residents also moved out. That still leaves around 500,000 new Arizona residents in the span of eight years.
With massive global changes since then, we can expect that this figure has only continued to go up. If you are among those who are relocating to Arizona, here are some things you need to take care of:
Set Up Utilities
Make sure to notify your current providers about your move and settle all your remaining balance. No matter how fast they say their setup is, it is always best to try and set up an account with local utility providers before you move to your new Arizona home.
Update your address and get an Arizona driver’s license
For the license, you will need to pass an eye exam and a written test. Of course, you also need to register your car and get a new car insurance policy.
Find your child’s new school district
Get copies of your children’s school records and transcripts, even if you haven’t started the enrolment process yet. You’ll definitely need them!
Get home insurance
While the state of Arizona does not require it, you will need home insurance if you have a mortgage. And it’s good to have anyway.
Home insurance will protect you from most incidents that may occur at your new home. It means the cost of material damage to your home and household items can be covered. Keep in mind that Arizona can get extremely hot (or cold) and this can cause damage to your home.
Update your other insurance policies
It’s not the most pleasant chore but in the end, you’ll feel much better knowing that you’re protected from circumstances beyond your control.
Aside from health, car, and home insurance, you should also look into pet insurance, boat insurance, and motorcycle insurance, if applicable. Ask your provider about getting a bundle discount to save on cash.
Find An Insurance Agency In Arizona
If you are moving to the Scottsdale area which includes Glendale and Phoenix, Luxe Insurance Brokers can take care of all your insurance needs.
Our home insurance coverage is more comprehensive than a typical policy that you may have seen before. We also provide coverage for additional living expenses should your home become uninhabitable due to a covered incident or liability protection if someone is injured within your property.
Aside from personal insurance coverage, we also provide business insurance including general liability, business auto, commercial property, worker’s compensation, and cyber liability, among others.
Call 480-568-2566 to set up an appointment. Luxe Insurance Brokers would love to help you with your insurance needs.
