Arizona’s real estate landscape has transformed dramatically over the past five years as baby boomers continue to shape housing markets across the state. With its combination of warm climate, stunning natural beauty, and relative affordability, Arizona has emerged as a premier destination for this influential generation—those born between 1946 and 1964.
The choices these homeowners make—whether to remain in spacious suburban houses, relocate to active adult communities, or experiment with newer living arrangements—ripple through neighborhoods and housing markets statewide. Their decisions affect everything from housing inventory to property values to community development, influencing younger generations’ options as well. Understanding the baby boomer impact on Arizona’s housing market reveals essential insights about retirement migration, economic priorities, and how this generation navigates its golden years in the desert Southwest.
Arizona’s Growing Baby Boomer Homeowner Demographic
Arizona has seen a significant increase in its baby boomer population and their impact on the housing market over the past five years. The state’s median age rose faster than any other state from 2010 to 2020, largely due to strong net in-migration of retirees in their 50s, 60s, and 70s.
By 2024, about 39% of Arizona’s homeowners were baby boomers (born 1946–1964), reflecting the state’s status as a retiree-friendly destination.
Nationally, baby boomers overtook younger generations in home buying around 2022 – they made up 39% of U.S. home buyers in 2022, up from 29% the year before. This trend is evident in Arizona, where boomers remain a major force in both home ownership and home purchases.
Migration and Retirement Destinations in the State
Arizona has emerged as a top retirement destination for baby boomers. A 2023 retiree migration study found that Arizona is one of the most popular states for relocating boomers, alongside Florida and South Carolina.
States like California, New York, and Illinois saw the biggest outflow of boomers, many of whom chose Arizona for their next chapter. Researchers note that affordability and cost of living are primary drivers behind this influx – with rising living costs and recession fears, retirees on fixed incomes seek out more affordable locales.
Within Arizona, the Phoenix metropolitan area is especially attractive: Phoenix-area suburbs rank among the top destinations nationwide for incoming baby boomers. In fact, three Phoenix suburbs – Scottsdale, Surprise, and Goodyear – were ranked 3rd, 4th, and 5th in the nation for their high rates of new boomer residents.
Warm weather, reasonable taxes, and a relatively lower cost of housing all contribute to Arizona’s appeal for this generation.
Urban vs. Suburban Living Preferences
When it comes to where in Arizona baby boomers settle, the preference generally leans toward suburban or small-town living over dense urban centers. National data show that about two-thirds of older adults live in suburban or small town areas, with only a small minority (around 10–15%) in urban city centers.
This holds true in Arizona: many retirees opt for quiet communities on the outskirts of cities or in scenic smaller cities. For example, Tucson, AZ has one of the highest concentrations of boomer homeowners in the country (about 42% of homeowners), indicating its popularity as a mid-sized city for retirees.
In the Phoenix area, retirees often choose master-planned suburbs and retirement communities (such as Sun City West or Green Valley near Tucson) rather than downtown condos.
Why Suburbs Appeal
Baby boomers typically no longer need to live near work in city centers and often seek warmer climates, familiar community feel, and “bang for their buck” in housing. The result is a pattern of boomers gravitating to Arizona’s suburbs, golf communities, and smaller towns where they can enjoy amenities without big-city congestion, while still having access to shopping and healthcare.
Only a limited segment of this generation chooses urban downtown living, usually those who prioritize walkability and proximity to cultural venues or top medical facilities.
Downsizing or Staying Put?
A notable trend among Arizona’s baby boomers in recent years is the tendency to stay in their existing homes longer rather than downsizing immediately at retirement. Historically, empty-nesters were expected to sell large family houses and move to smaller homes or condos. But today many boomers are aging in place.
In the Phoenix area, roughly 25% of family-sized homes (3+ bedrooms) are owned by baby boomers, many now with only one or two people living in them. Rather than selling, a large share are holding onto these homes.
Reasons for Staying Put
Experts note several reasons behind this “stay put” trend:
- About 79% of baby boomers are homeowners and nearly 70% of boomer homeowners over 65 are mortgage-free. With no monthly mortgage payment (or a very low interest rate if they refinanced), the financial pressure to sell is low.
- Many boomers are comfortable and “aging in place” by choice – they like their community and home and prefer to remain as long as health allows.
- There’s also a financial logic: selling a long-time home could trigger capital gains taxes and remove the option to pass down a valuable asset to their children.
Surveys confirm this inclination to stay put. In a recent national survey, nearly 80% of home-owning baby boomers indicated they plan to age in their current home rather than move.
The Gradual Transition
Some analysts have dubbed this phenomenon the “Silver Tsunami” that never quite crashes – instead of a sudden wave of downsizing, the transition is gradual. When boomers do sell, it tends to be later and often for specific reasons like health or inability to maintain the property.
Notably, older boomers who do choose to sell are the most likely of any generation to buy a smaller home afterward. Many cite that their previous home was simply too large or too much upkeep for their needs.
In Arizona, we see both sides of this trend: some retirees do downsize to patio homes or condos, but a large portion are “aging in place” in suburban homes, contributing to tighter housing supply for younger families.
Types of Homes Baby Boomers Purchase
Despite talk of downsizing, single-family detached homes remain the most common type of home purchased by baby boomers in Arizona, as is true nationally. Across all ages, about 75% of recent buyers chose detached single-family houses. Even among buyers over 60, a majority (58%) bought detached houses rather than condos or townhomes.
However, there is a notable segment of boomers opting for alternative housing arrangements that better fit their retirement lifestyles.
Age-Restricted “Active Adult” Communities
Arizona is famous for its 55-plus communities and active adult developments. These include large established communities like Sun City and Green Valley, as well as newer resorts by developers such as Trilogy by Shea Homes.
Many boomers are drawn to these communities for their amenities (clubhouses, golf courses, fitness centers) and social activities. Interestingly, studies show that it’s the quality of lifestyle programming and activities that matters more than just big facilities – in one survey of 50+ home shoppers, 70% said a community’s activities and lifestyle offerings were more important than the size of its clubhouse.
In fact, 67% of younger boomers (mid-to-late 50s) said they’d prefer a smaller community with targeted amenities that meet their needs, over a larger development with extras they don’t use. This indicates boomers are seeking practical and meaningful amenities – walking trails, hobby clubs, social events – rather than just square footage.
Roughly 1 in 5 home buyers over age 60 buys in a senior-oriented housing community, a significant share reflecting the popularity of these active adult options in Arizona.
Condos and Townhomes
Some retirees choose to buy condos or townhouses, especially those looking to downsize maintenance responsibilities. Condos in Arizona cities (like Phoenix, Scottsdale, or Tucson) can appeal to boomers who want a “lock-and-leave” lifestyle for traveling or a second home.
While not the majority choice, condos offer benefits like HOA-covered exterior maintenance, single-story living (or elevator access), and often gated security. Boomers who prefer to stay closer to urban amenities or who travel frequently may lean toward these attached home options.
Arizona builders have noted increased boomer demand for “right-sized” homes – smaller single-level floorplans or townhomes with modern features, which has driven new development in that sector.
Multi-Generational and Co-Living Arrangements
A smaller but growing trend is baby boomers embracing non-traditional living arrangements. Some are moving in with their adult children or other family members to form multi-generational households.
Nationally, 17% of recent home buyers purchased a multi-generational home, often to have aging parents live with them or to accommodate adult children. In Arizona, this can mean a boomer selling their home and moving into an in-law suite or casita on a child’s property, or conversely, a family moving into a larger home that includes space for the boomer parent.
Economic factors play a role here: housing costs and insufficient retirement savings have led some boomers to move in with grown kids for financial relief and caregiving support.
Additionally, home-sharing among seniors is an emerging concept – for example, an older homeowner might rent out a room to another senior or a younger roommate in exchange for help with errands or extra income. Such arrangements, including senior co-housing groups, allow boomers to retain a home setting while sharing expenses and companionship.
While co-living data is still limited, Arizona organizations have begun matching older adults as roommates to make housing more affordable.
Economic Factors Shaping Boomer Home Purchases
Several economic conditions between 2018 and 2023 have strongly influenced baby boomers’ home buying (or selling) decisions in Arizona.
Housing Market Dynamics
One major factor is Arizona’s housing market trajectory during this period. Home values across Arizona rose dramatically in the late 2010s and especially in 2020–2022, mirroring national trends. Many boomers benefited from this as longtime homeowners – their home equity surged as prices climbed.
This growth in equity has given boomers substantial wealth to leverage for purchasing a new home or funding their retirement. Most baby boomer buyers are repeat buyers who can use proceeds from a previous home to buy their next one, often with cash or large down payments.
Indeed, by 2023 a record number of home purchases were made in cash, largely thanks to older buyers trading down or relocating with equity gains (26% of all U.S. buyers paid all cash, an all-time high). In Arizona’s popular retiree markets, it’s common for boomers moving from high-cost states to purchase homes outright from the profit of selling their old home.
Interest Rates and Affordability Challenges
At the same time, high home prices and interest rates have made downsizing less affordable or appealing for some. By 2022, mortgage interest rates jumped to decades-high levels.
Many Arizona boomers hold ultra-low interest mortgages from prior years; moving and taking a new loan at 6–7% interest would mean higher monthly costs for a smaller home. This “lock-in effect” has discouraged selling.
Those who might have downsized are hesitant because giving up a 3% mortgage for a new 7% one (or paying cash and losing investment income) can be financially unfavorable. Moreover, the cost of smaller homes and condos has risen, sometimes narrowing the price gap between a large home and a downsized one.
In some cases, boomers simply can’t find an affordable replacement home that suits their needs, especially one with senior-friendly features. There is a shortage of accessible, single-story homes in many markets, so even equity-rich boomers may struggle to find a suitable downsizing option without paying a premium.
Economic volatility—such as the brief recession scare in 2020 and inflation in 2022—also made some boomers cautious. Rather than make big moves during uncertain times, many delayed plans and stayed put, hoping to ride out market fluctuations.
Arizona’s Cost Advantages
Another factor is Arizona’s overall cost of living relative to other states. Compared to states like California or the Northeast, Arizona offers more bang for the buck in housing and taxes, which has continued to draw retirees.
Arizona has relatively moderate property taxes and does not tax Social Security benefits, which is a financial plus for retirees. The “low tax rate and robust healthcare services” in the state were highlighted in Arizona’s State Plan on Aging as key reasons Arizona is an ideal place to retire.
For boomers living on fixed retirement incomes, the ability to stretch their dollars further is crucial. This financial motive underpins why Arizona saw net gains in boomer population while costlier states saw losses.
Retirement Priorities: Family, Healthcare, and Lifestyle
Beyond dollars and cents, baby boomers’ housing choices are driven by personal and lifestyle priorities in their retirement years.
Family Connections
One primary motivation is proximity to family and friends. As they retire, many boomers decide to move closer to children, grandchildren, or social networks. NAR data show that being near loved ones is a top reason boomers purchased homes – often cited as a key driver alongside the desire for a smaller home.
In Arizona, this can mean boomers relocating to be near family who have already moved to the Southwest, or it can mean staying in place if their family is local. Those moving from out of state often choose areas where they already have friends or community ties. Similarly, some long-time Arizona boomers who might otherwise consider leaving state stay because their adult children have settled in Arizona or nearby.
Healthcare Access
Healthcare access is another critical factor influencing boomer home-buying trends. As people age, living near quality medical facilities becomes increasingly important. Older home buyers often prioritize locations with nearby hospitals, specialists, and senior healthcare services.
In fact, buyers in the Silent Generation (older than boomers) are the most likely to base their neighborhood choice on convenience to health facilities, and younger boomers are not far behind in considering this factor.
Arizona’s metro areas offer extensive healthcare networks – for example, Phoenix boasts renowned hospitals (the Mayo Clinic, Banner Health centers, etc.), and Tucson has well-regarded medical centers affiliated with the University of Arizona. This makes larger Arizona cities and their suburbs attractive to retirees who want peace of mind about emergency and specialist care.
Many active adult communities are strategically located near medical complexes. For instance, Sun City’s development was paired with the creation of Boswell Hospital to serve residents’ needs. Boomers planning for longevity look for homes in areas where they can easily access doctors, pharmacies, and even home health services if needed.
The state has also seen growth in in-home care programs and telemedicine, allowing more seniors to remain in their communities while getting care.
Lifestyle and Recreation
Finally, lifestyle and amenity preferences play a big role. Today’s baby boomers are entering retirement much more active and socially engaged than prior generations. They often seek homes that will support an enjoyable, vibrant retirement.
This can mean golf courses, hiking and outdoor recreation, cultural activities, and continuing education opportunities are in the vicinity of their chosen community. Arizona’s climate allows year-round outdoor activity, which is a huge draw.
Many boomers specifically choose communities with access to golfing, pickleball, biking trails, or swimming pools. The concept of “aging well” for this generation includes staying physically active and socially connected. Therefore, housing choices trend toward places that facilitate those goals – whether it’s a house near a golf course, a condo in a walkable neighborhood, or an active adult community with a jam-packed events calendar.
Surveys of boomer home shoppers found that engaging social amenities and lifestyle programming were extremely important in their decision. People want to picture themselves pursuing hobbies, joining clubs, and making new friends in the community. Arizona developers have taken note, delivering communities with everything from art studios and fitness classes to organized outings.
Age-Friendly Design
In terms of home features, many boomers are also planning ahead by looking for age-friendly design – single-floor living, few or no stairs, accessible bathrooms, and low-maintenance yards.
Even those who remain in their long-time homes often retrofit them with grab bars, ramps, or smart-home technology to make aging in place easier. Safety and convenience are top of mind.
Additionally, some boomers factor in the need for space for hobbies or hosting family (like an extra room for when grandkids visit) when choosing a home. Interestingly, a portion of boomers are purchasing homes not just for themselves but as part of a retirement investment strategy – for example, buying a winter home in Arizona while keeping a summer home elsewhere, or investing in properties that could generate rental income until they eventually occupy them.
References:
- TOTAL POPULATION – ASU W.P. Carey School of Business
- Baby Boomer-Dominant Housing Markets [2024] – Construction Coverage
- Baby Boomers Overtake Millennials as Largest Generation of Home Buyers – National Association of Realtors
- Baby boomers flock to Arizona for retirement – KNAU Arizona News
- Where baby boomers are moving – 104.5 WOKV
- Experiences, social connection drive Baby Boomers’ home shopping process – AZ Big Media
- Home Buyers and Sellers Generational Trends – National Association of Realtors
- Baby boomers aren’t downsizing, and it’s straining the housing market – KJZZ News
- Baby-Boomer Homeowners Got Rich From Skyrocketing House Prices. Now They Can’t Find Retirement Housing – National Association of Senior & Specialty Move Managers blog
- Highlights From the Profile of Home Buyers and Sellers – National Association of Realtors
- Active-Adult Communities for the 55+ Set – Downsize Today
- Aging in Place with Older Americans Month – University of Arizona College of Nursing
- East Valley Senior Home Sharing Program – Tempe Community Action Agency
- Arizona State Plan on Aging 2023-2026 – Arizona Department of Economic Security
