Why Is Everyone Leaving Prescott Arizona | What Buyers and Sellers Need to Know

Prescott, Arizona, often called everybody's hometown, has always been a magnet for those looking for peace, nature, and small-town charm. But lately, there's been a different kind of buzz. Is everyone leaving Prescott? Well, in 2024, Prescott's population reached just under 50,000 people, a modest 1.17% increase. But despite that slow growth, many people say something is shifting. Today, we're going to dig into the real reasons people are choosing to leave, how it affects the community, and what it means if you are thinking of buying, selling, or staying here in Prescott, Arizona. Now, you might want to ask, why does this matter to me? Why does this matter to you? Well, whether you're a long-time resident, a new arrival, or just someone considering Prescott, understanding these trends can help you make smarter real estate decisions. From home prices and insurance hikes to lifestyle shifts, we will cover it all. So let's dive in. Two side notes. One, I need to introduce myself. My name is Odessa Kileman, and you are watching the Prescott Homeowner. This is my YouTube channel where we cover all things about Prescott, including home tours, lifestyle, pricing, things like that. The other thing I want to caveat and say is that this data is for the city of Prescott only. It does not include Dewey, Chino Valley, Prescott Valley, any of those neighboring towns. So let's dive right into number one, which is cost of living and affordability. Prescott's charm now comes at a premium. The median home price jumped from around $343,000 in 2019 to over $642,000 in 2024. That's an 87% increase, pretty significant. But how does that compare to other areas in Arizona or across the country? Well, Phoenix experienced a 35% increase from $344,000 to $466,000, and Scottsdale jumped to $863,000, a 44% increase over the 2019 price of $600,000. So there have been some significant jumps, Scottsdale, Phoenix, and across the state. Arizona statewide jumped from over $267,000 to $424,000 in that same time period from 2019 to 2024. And keep in mind, this is when the whole real estate market went crazy. The national average jumped from $258,000 to $440,000, almost $442,000, a 71% increase. So prices have gone up everywhere, maybe a little bit more in Prescott than other areas. And while sellers may benefit from rising prices, it does create some affordability issues. So that's that subject. So let's talk now a little bit about the growth in Prescott and the crowds that it brings. Prescott's peaceful reputation has brought a steady wave of newcomers, but with them comes traffic, crowded trails, and sometimes long waits downtown. From 2020 to 2025, the city's population increased by 6.16%. Traffic on Highway 69, the main road leading into Prescott, has become so congested that ADOT launched a road widening project in 2024 that is really going to help that. And there is also road widening, of course, happening along I-17 as well for those people that are coming to Prescott for the weekend. Now the mayor here in Prescott actually did address this in March of 2024, and there is some relation to some of the road widening to recent tax increases here in Prescott, Arizona. So they are building that infrastructure for the larger crowds. And popular areas like Watson Lake and Whiskey Row are going to be very busy on the weekends. So the small town charm kind of changes a little bit when you have this kind of festival vibe. So number three is limited inventory and housing competition. So in May of 2025, there were only 548 active listings in Prescott with a median list price of $826,000. Now the average days on market was 121 days, and that's according to Altos. Every statistic you show is going to have a little bit different number. But regardless, there are not a lot of homes for sale. And so this tight inventory limits options for buyers with specific needs. Things like single level homes or larger lots under $600,000, you may find some competition even in this market. Another reason why people are leaving Prescott is the wildfire risk. So in 2024, Arizona had over 2,000 wildfires that burned 277,000 acres. That is a lot of land. And with this, that creates a high wildfire risk for Prescott, Arizona. And what we're finding is that some of the larger insurance companies are actually choosing to pull out of Prescott, and that is driving insurance costs to increase. Now I'm going to say this isn't specific to Prescott. You're going to find this all across Northern Arizona, especially in wooded areas. The average premium on Prescott right now is about $2,400 a year compared to under $2,000 in last year and $2,100 nationally. Now prices can vary widely from one insurance company to another. So it is very important when you're looking at a home here in Prescott to shop around for those prices. And hopefully you find an insurance company that hasn't flagged your neighborhood with a high wildfire risk. Now efforts like fuel reduction projects are underway, but the risk remains high. And hopefully we'll get those insurance companies back and get home insurance prices down. And the fifth reason that people are leaving Prescott are life stage or lifestyle changes. A lot of people are leaving for family, healthcare, or retirement preferences. Some people want warmer climates year round, better access to large hospitals, urban amenities and nightlife, a lower cost of living. And of course the job market, there isn't a lot of big industry here for people who are starting out and have big career aspirations. So while Prescott still offers a lot, it may not align with some people's needs. And as those needs change, those people may decide to leave Prescott, Arizona. Now of course there is the other side of the story. For every person leaves Prescott, Arizona, somebody new arrives. Actually, we have still growing population. So there's more people coming that are leaving. Why is this? Well, Prescott does have some wonderful things over a hundred miles of hiking and biking trails for true seasons, but mild seasons and a beautiful natural scenic setting. Downtown is a lot of fun. It's historic. There's a lot of things to do, especially in the summer months. And there's a strong sense of community and local pride compared to other cities. Prescott does have lower crime rates and a lot of people consider it a high quality of life. So Prescott continues to draw people seeking a beautiful, peaceful place to live. So are you thinking of leaving Prescott or are you dreaming of making it your home? I am Odessa Kileman, your local guide to all things real estate here in Prescott, Arizona. So please remember to subscribe to this channel, the Prescott homeowner for honest local market insights. And go ahead and drop me a comment below with your questions or a story about why you want to move to or why you left Prescott. I am looking to hear from you. And if you'd like to speak with me directly, you can always schedule a call. I am here to help you with your next move with clarity and confidence, whether you're buying, selling, staying, going. I appreciate you. Thank you so much for watching.