Big Idea

• Comparable housing prices are lower in Prescott than in California
• Politics in Yavapai County tend to be more Republican
• Taxes in Arizona are lower than in California
• There are many things to do in Prescott, Arizona
• Read more...

People are Watching, Govern Yourselves Accordingly

The housing market in California is suffering from a mass exodus to other tax-friendly states such as Arizona and Texas, where they welcome escapees. Estimates of the departures out of California make Arizona the number two choice for ex-pats. These new neighbors leave the California taxes, pollution, crime, and politics and arrive in Prescott, AZ to find they can breathe again. Coming primarily from inland zip codes where the housing market and other conditions are unlivable, they choose to trade up for mountainous clean air and affordable homes.

In Prescott, a home is about 65-70% of the cost of a comparable house in California. For example, a 2,500 sq.ft inland home, providing you can sell it, will get you about $800,000. The comp in Prescott is market priced $550,000-$600,000; more home, less money.

You can compare the housing market value of comparable sq. foot and amenities but do not compare the politics. Politically, Yavapai County is predominately red, 47% of registered voters are Republican according to the State of AZ Registration Report 8/4/2020.

According to the Tax Foundation, a non-profit policy research organization, Joe Biden’s tax plan would yield top marginal rates more than 60% for California’s highest income generators. Biden’s proposal does not look great for Arizona taxpayer’s either, but we will take the projections of 53-57% over California’s 60%+ rates.

Arizonan’s fare better with income and federal tax rates as well. Currently, Arizona rates range from 2.5-4.9% for state income tax and 2.59-4.5% for federal tax.

People are talking in “Everybody’s Hometown”

Conversations in locally-owned coffee shops and restaurants focus on the retention, even bolstering of the 2nd amendment; the local housing boom and fiscal responsibility. Prescott is known as, “Everybody’s Hometown,” with a main street plaza where the historic courthouse is surrounded by well-kept lawns. Locals, visitors, families, kids, virtually everyone spends time in this quaint part of town where the scuttlebutt often circles back to people moving in from out of state, the election, taxes, and the common sentiment of “Aren’t we lucky?” referring to the benefits of living in Prescott.

Whether running away from California shortcomings or running to Prescott’s assets, there is peace in this community. Some of the former Californians embrace the clean air and outdoor opportunities such as

• hiking
• fishing
• biking
• gardening

The small town feel of local theatre, events on the downtown plaza, and knowing the name of the cashier at the grocery store creates the character of beloved Prescott.

Every community has its pros and cons and if brand name, high-end society is your preference, Prescott may be provincial for you. However, the good news is, you can get that just an hour away in Phoenix.

For those looking to leave California because you are reminded every day that you cannot drink your tap water; the politics and governance have become too much and overbearing, Prescott is a good place to explore and consider.

John Gorden of Prescott, AZ is California ex-pat and professional real estate agent specializing in assisting Californians relocating to Prescott AZ and surrounding areas. He can be reached at (928) 308-0101 online at This email address is being protected from spambots. You need JavaScript enabled to view it. or www.prescottsbesthomes.com.