Property taxes one of the biggest differences between Arizona and Midwest homes

I was out of town for several days last week and didn't get the chance to blog, but on my trip I enjoyed one of my favorite pastimes; looking at model homes. It's always interesting to check out different parts of the country and see what appeals to local home buyers. Since many Tucson residents have relocated from different parts of the word, I like to note the differences I come across whenever I hit the road. My latest travels took me to the Midwest where I found some very distinct differences between homes in St Louis and Tucson.

There were a number of differences that jumped out at me when I looked at homes in St Louis. Of course the landscape is different; St Louis sees lush green foliage and Tucson is home to drought tolerant plant life (which is still be green and colorful through most of the year). All the yards in Missouri have green grass while most Tucson yards consist mainly of gravel (water conservation!). The majority of St. Louis homes don't have walls surrounding the property; the yards are open to anyone walking by. Even homes with pools don't have the high block walls you see surrounding most Tucson properties. Many only have low lying wrought iron "fences", while others use trees and bushes to create privacy walls.

The homes themselves share a lot of similarities and differences. St Louis homes use various weather durable vinyl/concrete sidings that protect against rain and snow. Tucson homes use stucco, a breathable sand/cement/water combination that sprays on wet and forms a hard shell when dry. Homes in Missouri have asphalt shingle roofs, which generally last about 20 years, while most Arizona homes have concrete tile roofs that can last up to 50 years. Block/stone accents are popular choices with homeowners in both areas, while brick is seen mainly in the Midwest. Interiors aren't too different; most homes in the Midwest have primarily wood flooring with some tile and carpet, while Arizona homes have mostly tile and some carpet. Wood flooring is becoming more popular in Arizona, and we see many homeowners replacing carpet with Pergo laminate wood flooring.

One of the big differences I found is the cost of living in Missouri versus Arizona. Missouri's expensive! Taxes are quite a bit higher there, with income tax at 6% and sales tax at 4.3%. In Arizona income is taxed in different brackets, with the highest being 4.5%. Sales tax runs a little higher at about 6.3%. Property tax is a confusing calculation but the assessment rate is 19% in Missouri, while in Arizona it's only 10%. Property taxes for a $750K home in St Louis run almost $10,000 a year, while in Tucson it's less then half that. That makes a big difference in a monthly mortgage payment! I've had many clients that relocated to Tucson and were thrilled at the lower cost of living.

I also noticed that St. Louis home builders aren't negotiating like Tucson builders are. Local Arizona builders have been offering incentives of up to $100K of the price of inventory homes, while St. Louis builders aren't offering much of anything. From what I've found St. Louis real estate is seeing their normal summer slowdown with lower unit sales and higher days on market. Home prices remain stable overall, but price declines are being seen in areas that were overbuilt or have suffered concentrated industry downturns. Tucson home prices are seeing a slight increase but remain much lower then they've been in previous years. We still see a high number of foreclosures due to sub prime issues and lower home values, so there are some great deals to be found for home buyers.