Millionaires and big-city dwellers are moving to Scottsdale and Paradise Valley in Arizona.
On the outskirts of Phoenix, grand homes offer privacy and mountain views.
I have visited both and found one to be more expensive than the other due to location and size of the property.
Whether you're an engineer, business owner or recent retiree, Phoenix offers a comfortable lifestyle for everyone.
This desert valley city is known for its vibrant tech industry, sunny skies, dramatic natural scenery and easy travel thanks to the convenient Phoenix Sky Harbor International Airport.
With low taxes, it's no wonder billionaires and big city dwellers pack their bags and move to the area.
But they aren't flocking to Phoenix city itself, but to the surrounding suburbs, such as Scottsdale and Paradise Valley.
An influx of billionaires over the past decade has made Scottsdale the second-fastest-growing city in the United States in terms of wealth, Business Insider reported in March 2024.
Meanwhile, neighboring Paradise Valley is the state's wealthiest municipality. Also known as the “Beverly Hills of Arizona,” Paradise Valley is home to celebrities and billionaires, from Stevie Nicks to Campbell Soup heir Bennett Drancet.
So what makes Paradise Valley more expensive and exclusive than Scottsdale, and what are the differences between the two?
I went to two suburban areas of Phoenix to check it out.
Paradise Valley was established in 1961 and has since been primarily used as a residential community.
Houses line the mountains of Paradise Valley. Joey Hadden/Business Insider
According to the town's website, as Phoenix and Scottsdale expanded in the decades after World War II, the town of Paradise Valley was founded to keep the area entirely residential, without shopping malls or businesses that would take away from its rural feel. It is just 15.5 square miles, according to the Paradise Valley Arizona Chamber of Commerce.
Today, the town is home to about 14,000 residents and is mostly residential, with the exception of a few resorts, schools, restaurants and golf courses.
BI reported in 2023 that Californians have been flocking to Paradise Valley over the past decade, with the average resident owning millions of dollars worth of property and earning $220,000 a year.
According to Realtor.com, the average listing price for homes in this town at the base of Camelback and Mummy Mountains is $5.5 million, and the luxury estates come with pools, outdoor kitchens and spacious yards.
Scottsdale has developed into more of a city.
South (left) and north (right) Scottsdale. Joey Hadden/Business Insider
Founded in 1951, Scottsdale encompasses 185 square miles and is currently home to 243,000 residents, according to the city.
During our trip, we noticed that Scottsdale is much more developed than Paradise Valley, with Downtown Scottsdale on the southern end featuring high-end shops, restaurants, and luxury resorts.
Meanwhile, North Scottsdale has the city's most expensive real estate, with homes priced as high as $54 million, according to Realtor.com.
North Scottsdale is primarily a residential area, but it also has several business, shopping, and restaurant districts, including the Scottsdale Quarter, an outdoor shopping mall.
The customer demographic in this area is similar to Paradise Valley: entrepreneurs, executives, retirees and medical professionals, local luxury real estate broker Sean Shackleton, who has sold homes in both towns for the past 20 years, told BI.
Scottsdale and Paradise Valley are both east of Phoenix, but Paradise Valley is closer to the action.
Paradise Valley is east of Phoenix and west of Scottsdale. Joey Hadden/Business Insider
One of the reasons Paradise Valley is more expensive than Scottsdale is because of its prime location, Shackleton said.
Located between Phoenix and Scottsdale, the Paradise Valley neighborhood offers residents a rustic retreat 15 to 20 minutes from downtown Phoenix, the airport and the Biltmore, the region's financial district, Shackleton said.
Downtown Scottsdale is about the same distance away as Phoenix, but most of the luxury housing is in the north, so Scottsdale's wealthiest residents may live a 40-minute drive from Phoenix.
In Paradise Valley, most lots are at least an acre in size.
A vast expanse of land in Paradise Valley. Joey Hadden/Business Insider
He found that most of the homes in Paradise Valley are far apart, and Shackleton told BI that lot sizes in Paradise Valley are generally larger than in Scottsdale, usually between one acre and 27 acres.
Mr Shackleton told BI that the extra space is ideal for many clients who want to live in a spacious, single-storey home.
“Some people come from big cities where they're used to two-storey homes and small yards, but here you can get a single-storey house,” she says. “If you get a single-storey, or as many people call it, a one-storey house, you get a little more land and the price is higher.”
Scottsdale, on the other hand, has smaller lot sizes.
A street in one of 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 have lots under an acre, with the largest properties being in North Scottsdale, according to Zillow.
During my trip, I toured Silverleaf Village, located within the 4,000-acre DC Ranch residential community, one of the city's most exclusive neighborhoods.
We saw some large, spacious custom homes in Silverleaf, but even there, most properties are under 10 acres, according to Shackleton's YouTube video.
Luxury homes in Paradise Valley are typically individually gated.
Gated estate in Paradise Valley. Joey Hadden/Business Insider
Shackleton said Paradise Valley's large lots and gated private roads give its celebrity residents a sense of privacy.
“At the higher end of the price range, many of the homes in Paradise Valley are individually gated,” Shackleton says. “Some people like the feeling of having their own private estate.”
The most expensive neighborhoods in Scottsdale are gated communities with 24-hour security.
Gated residential neighborhood in Scottsdale's DC Ranch community. Joey Hadden/Business Insider
Many neighborhoods in North Scottsdale are gated residential neighborhoods with 24-hour security, such as DC Ranch. Desert Mountainand WR Estate.
This gives residents privacy and safety from the general public, but not necessarily privacy and safety from their neighbors.
Scottsdale has even stricter restrictions on custom homes.
A home in Silverleaf Village, DC Ranch. Joey Hadden/Business Insider
Most homes in North Scottsdale are located within residential communities, meaning residents looking to build their home choose from a selection of community-approved models and floor plans.
Scottsdale zoning laws also mean he can't choose where on the property he builds his home, Shackleton said in the YouTube video.
Paradise Valley offers greater flexibility in custom homes and more diverse landscapes.
A mansion located at the foot of Camelback Mountain in Paradise Valley. Joey Hadden/Business Insider
According to the video, Paradise Valley has fewer residential communities and fewer zoning laws governing real estate development, making it a diverse neighborhood that breaks from suburban stereotypes.
As a non-billionaire, I wondered if I could even tell the difference between these two upscale neighborhoods, but after visiting, it became clear why one is known as the “Beverly Hills of Arizona.”
