Millionaires and big city dwellers are moving to Scottsdale and Paradise Valley in Arizona.
Phoenix suburbs offer large estates with privacy and mountain views.
I visited both and saw that one was more expensive than the other due to the location and size of the property.
Whether you’re a tech worker, executive, or recent retiree, Phoenix offers easy living.
The desert valley city is known for its booming tech scene, sunny climate, spectacular natural scenery and ease of travel thanks to the well-connected Phoenix Sky Harbor International Airport.
And with lower taxes, it’s no wonder millionaires and big-city dwellers are packing up and moving to the area.
But they’re not heading to Phoenix proper; they’re moving to the suburbs that surround it: Scottsdale and Paradise Valley.
The influx of millionaire residents over the past decade has made Scottsdale the second-fastest-growing U.S. city in terms of wealth, Business Insider reported in March 2024.
The neighboring municipality of Paradise Valley is the wealthiest in the state. Also known as the “Beverly Hills of Arizona,” Paradise Valley attracts celebrities and billionaires, from Stevie Nicks to Campbell Soup heir Bennett Dorrance.
So what makes Paradise Valley more expensive and exclusive than Scottsdale, and how are they different?
I went to both suburbs of Phoenix and found out.
Paradise Valley has been primarily a residential area since its incorporation in 1961.
Houses line a mountain in Paradise Valley. Joey Hadden/Business Insider
As Phoenix and Scottsdale expanded in the decades after World War II, the city of Paradise Valley was created to keep the area strictly residential with no shopping malls or businesses to erase the rural feel, according to the city’s website. It’s just 15.5 square miles, according to the Paradise Valley Chamber of Commerce in Arizona.
Today, the town has a population of about 14,000 and is still primarily residential, with the exception of a few hotel complexes, schools, restaurants and golf courses.
In 2023, BI reported that Californians have flocked to Paradise Valley over the past decade. The average resident owns a multi-million dollar estate and earns $220,000 a year.
With an average price of $5.5 million, according to Realtor.com, homes in the town at the foot of Camelback and Mummy Mountains are grand estates with pools, outdoor kitchens and expansive yards.
Scottsdale has grown more like a city.
South (L) and North (R) of Scottsdale. Joey Hadden/Business Insider
Founded in 1951, Scottsdale covers 185 square miles and currently has a population of 243,000, according to the city.
During my trip, I noticed that Scottsdale was much more developed than Paradise Valley. On the southern end, downtown Scottsdale is full of high-end shops, restaurants, and luxury resorts.
Meanwhile, North Scottsdale is home to the city’s most expensive real estate, with homes as expensive as $54 million, according to Realtor.com.
Although it’s primarily a residential neighborhood, I spotted a few blocks of businesses, shops and restaurants in North Scottsdale, including the outdoor shopping mall, Scottsdale Quarter.
The clientele up there is similar to that of Paradise Valley: entrepreneurs, executives, retirees and health care professionals, Shawn Shackleton, a local luxury real estate agent who has sold homes in both cities for the past 20 years, told BI.
Scottsdale and Paradise Valley are both located east of Phoenix, but Paradise Valley is closer to the action.
Paradise Valley is located east of Phoenix and west of Scottsdale. Joey Hadden/Business Insider
According to Shackleton, one of the reasons Paradise Valley is more expensive than Scottsdale is its prime location.
Paradise Valley sits between Phoenix and Scottsdale, Shackleton said, offering residents a country-style retreat 15 to 20 minutes from downtown Phoenix, the airport and Biltmore, the area’s financial district.
Downtown Scottsdale is similar in distance to Phoenix, but since most of the luxury homes are in the northern area, Scottsdale’s wealthiest residents can live within a 40-minute drive of Phoenix.
In Paradise Valley, most properties are at least one acre in size.
A large property in Paradise Valley. Joey Hadden/Business Insider
I noticed that most of the homes were very far apart in Paradise Valley. Shackleton told BI that lots are generally larger in Paradise Valley than in Scottsdale, typically between 1 and 27 acres.
Shackleton told BI that having plenty of space is ideal for many clients who want to live in a large, single-story home.
“Some come from big cities where they’re used to having two-story homes and small yards. And here we have the opportunity to have single-story homes,” she said. “If you go with a single-story home, or ranch, as most people call it, it means a little bit more land and a higher price tag.”
Meanwhile, Scottsdale has smaller lots.
A street in one of the DC Ranch villages. Joey Hadden/Business Insider
In Scottsdale, most neighborhoods had a typical suburban layout with homes sharing side yards.
Unlike Paradise Valley, most homes for sale in Scottsdale are less than an acre of land, according to Zillow, with the largest properties found in North Scottsdale.
During my trip, I visited one of the city’s most expensive neighborhoods: Silverleaf Village, located in the 4,000-acre DC Ranch residential community.
I’ve seen some large, sprawling custom homes in Silverleaf, but according to Shackleton’s YouTube video, even there most properties are less than 10 acres.
Paradise Valley luxury homes are typically individually gated.
A gated estate in Paradise Valley. Joey Hadden/Business Insider
Shackleton says Paradise Valley’s large lots and gated driveways give high-profile residents a sense of privacy.
“In the higher price ranges, many Paradise Valley homes have individual gates,” Shackleton said. “Some people like the feeling of being in their own private domain.”
The most expensive neighborhoods in Scottsdale are gated communities with 24-hour security guards.
A gated neighborhood in Scottsdale’s DC Ranch community. Joey Hadden/Business Insider
Many neighborhoods in North Scottsdale are gated within residential communities and have 24-hour guards, such as DC Ranch, Desert MountainAnd WR Domains.
This gives residents privacy and security from the public, but not necessarily from their neighbors.
Scottsdale has more limits on custom homes.
Homes in DC Ranch’s Silverleaf Village. Joey Hadden/Business Insider
Since most North Scottsdale homes are located in residential communities, residents looking to build homes choose from a select set of community-approved designs and floor plans.
And because of Scottsdale’s zoning laws, they can’t choose where on the property the house is built, Shackleton said in the YouTube video.
Paradise Valley offers more flexibility in custom homes, resulting in a more diverse landscape.
Mansions at the foot of Camelback Mountain in Paradise Valley. Joey Hadden/Business Insider
According to the same video, Paradise Valley has fewer residential communities and zoning laws regarding real estate development, resulting in diverse neighborhoods that defy the usual suburban stigma.
As a non-millionaire, I was skeptical that I could tell the difference between these two luxurious suburbs. But after my trip, I understand why only one of them is known as the “Beverly Hills of Arizona.”
