Though Arizona experienced record-breaking heat this summer, the state continues to attract new residents thanks to its strong economic climate.
According to a recent study published in the Phoenix Business Journal, Arizona is one of the top five states in the nation attracting residents with at least $200,000 in adjusted gross income.
Tax data shows that Arizona saw the fourth-largest net migration of high-earning households in the U.S between 2020 and 2021, which resulted in a household net gain of 4,563 across the state. This put Arizona only behind Florida, Texas and North Carolina in the study’s rankings.
While Arizona witnessed a large influx of high-earning residents in the study, certain states experienced a significant outflux, including California and New York, which lost the highest numbers of high-earning tax filers in the country.
Arizona’s population growth can be explained by the state’s ongoing efforts to create new jobs, deliver reliable services and provide clean energy resources—factors that have all continued to attract new residents despite Arizona’s high temperatures.
Recently, Coolidge, Ariz. was approved for the expansion of its SRP Generating Station, which will provide even more advanced manufacturing jobs that helped the city see a population growth of almost 12% last year, according to the United States Census Bureau.
The Coolidge generating station will also help support energy demands of the growing population in addition to the new battery manufacturing complex by LG Energy Solutions that was announced earlier this year. Plus, Arizona is one of the highest ranking states in the U.S. for solar energy potential.
Additionally, Arizona’s cost of living continues to attract new residents, specifically in the Phoenix metro area, where living costs remain lower than many other metropolitan areas in the country. Arizona is also expected to see a growth in its health care sector each year, which is positively impacting the economy as the state’s largest single sector.