With 300 days of sunshine a year, low taxes and safe roads, it's no wonder Californians flock to the so-called “Beverly Hills of Arizona.”
Located between Phoenix and Scotsdale, Paradise Valley is Arizona's wealthiest community. The average home costs a staggering $2.87 million.
The affluent area has already proven popular with celebrities such as Alicia Keys, Michael Phelps and Stevie Knicks.
And now many new residents are arriving from California, luxury real estate agent Joan Levinson told Business Insider – the recent transplants say they're simply fed up with rising crime and the high cost of living.
Paradise Valley is Arizona's most affluent community between Phoenix and Scotsdale and features luxurious golf courses
On the market for $8,888,888, this five-bedroom home is nestled among cacti and dramatic rocky outcrops – designed to maximize views of Camelback and Mummy Mountains
Home buyers want to leave expensive, crime-ridden cities like Los Angeles and San Francisco
Numbers show that California has been losing more residents to Maricopa County – Arizona's most populous county – in recent years.
Between 2016 and 2020, an average of 1,555 people moved from Santa Clara County — home to tech hub Silicon Valley — each year. That's a 38 percent increase compared to the period between 2011 and 2015, Business Insider reported.
Meanwhile, Los Angeles County lost an average of 8,614 residents to Maricopa County each year between 2016 and 2020 — a 48 percent increase from 2011 to 2015.
And San Diego has added 5,206 residents to the area annually since 2016.
Kelly Jones, an Arizona real estate agent, told Business Insider: “California as a whole has taxes that have really hurt everyone, and they look at the cost of living there versus here.” “It's a lot cheaper to live here.”
Arizona also boasts a lower crime rate, which is a big draw for residents of many major California cities – more and more people are leaving cities like LA and San Francisco due to the crippling homelessness, crime and opioid crisis.
The desert and mountain town of Paradise Valley is Arizona's wealthiest community. Located east of the state capital Phoenix, it stretches 15.4 miles from Scottsdale to Camelback Mountain.
Known for its luxurious golf courses, it consists of more than 5,000 homes – with prime properties selling for well over $20 million.
Venture capital founder Ken Sawyer moved to Paradise Valley with his family from San Francisco in 2019.
He told Business Insider: “Every month there are more and more people both in the tech world and from California in general.”
“We love San Francisco. But it stopped providing the public education we wanted and stopped providing the security we wanted.
“The opportunity to live in Paradise Valley has truly given us a quality of life that is far superior.”
Taylor and Amelia Graber moved from San Diego to Paradise Valley in 2021.
Medical entrepreneur Taylor told Business Insider, “I love San Diego.” However, the cost of living is higher there. Buying a house there is more expensive. The taxes are more expensive there.”
Graber estimated that the marginal tax rate on her household income in California was 4.5 percent, more than twice as high as in Arizona.
Arizona also has a booming tech scene, making it easier for Californians to move from their jobs in Silicone Valley.
This $75 million home, under construction, is the most expensive on the market in Paradise Valley
The renderings of the property show several pools with a waterfall and lazy river
The listing promises two bowling alleys, an indoor shooting range, a golf simulator and a cinema/metaverse room
According to Realtor.com, the annual median home price in Paradise Valley reached $2.87 million last year, a 14 percent increase from the previous year.
According to Business Insider, this is more expensive than the median price of homes in San Francisco and Los Angeles at $1.19 million and $957,000, respectively.
The most expensive neighborhood in Paradise Valley is Clearwater Hills, where mansions cost between $20 million and $30 million.
Designers in the area favor Georgian and Mediterranean styles, but modern glass and metal structures are also commonplace.
Robert Joffe, founder and associate broker of The Joffe Group, told Mansion Global, “This area of Arizona has great appeal.” “People from all over the country flock here to buy homes.”
He added, “It wasn't long ago, maybe five years ago, that I sold the highest priced home on the MLS.” [in Arizona]and it was $12.75 million.'
Last year, an 18,500-square-foot home near Mummy Mountain surpassed that record, selling for $23.5 million.
According to real estate site Redfin, the record is expected to be broken again, with five homes currently listed for over $25 million.
The area is popular with celebrities such as Alicia Keys, Michael Phelps and Stevie Knicks, all of whom have previously owned properties there.
Keys described her four-bedroom property as “a magical place” in 2016 before selling it for $3.1 million.
She said: “The wonderful climate, stunning scenery, arts and culture and the fact that Phoenix is not as crowded as some other warm weather destinations were also a big reason for us.”
This sprawling 16,035 square foot estate is on the market for $20 million
The $20 million home has eight beds and ten baths spread across multiple buildings
The design and construction of the main closet alone cost $1 million
The house was designed by Matt Boland and renovated and expanded from 2015 to 2023
According to the listing, the owner spent a year and a half searching for the site and another year spending millions of dollars excavating the property
The house then took 2.5 years to build using steel and blocks
Olympic swimmer Phelps even secretly married his wife Nicole Johnson in the Valley in 2015.
The couple then moved to a nearby mansion and stayed there for three years before deciding they needed more space in 2018 and selling the home for $3.5 million – but they reportedly stayed in the area.
The most expensive home currently listed in Paradise Valley is a 13-bedroom, 16-bathroom, 40,000-square-foot modernist palace worth $75 million.
It's under construction, but renderings show a curved entrance with pools — even a lazy river — and lounge areas.
And there will be no shortage of entertainment, as the listing promises: “Two bowling alleys, indoor shooting range, golf simulator, cinema/metaverse room, spa, a home gym, casino room, recording studio, collectors gallery.”
For those looking to relax, there's a “sauna, snow room, vitality pools and two massage/treatment rooms.”