Rich people in Phoenix - from what? (Scottsdale, Paradise Valley: transplants, real estate)

[Steerpike]

I've been in the Phoenix area for about 10 months now, living in Scottsdale and working in North Phoenix. I like it here. I read a lot about the unemployment, the bargain basement housing, etc. But on the other hand, as I explore the place, I come across phenomenal wealth. At restaurants in Scottsdale, I've seen two Ferrari's and a Bentley parked outside; mansions in Paradise Valley; more fancy furniture stores and high-end restaurants than you can count.

I've spent the last 25+ years in the Bay Area (San Francisco/Silicon Valley area) where there is also phenomenal wealth - but there, I know where it comes from - it's obvious (*). But I have no clue where the wealth in the Phoenix area comes from. I know there's a lot of retirees here, and I guess lots of rich folk have second homes here, but I would not have thought that would be enough to explain what I'm seeing here. So where does the money come from?

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(*) - drive around the Bay Area and you'll see the head offices for Google, Intel, HP, AMD, Apple, Genentech, Cisco, Oracle, Charles Schwab, etc -. Then there's the (relatively) 'old money' of the Getty's the Stanford's, etc. So when you drive around Hillsborough, or Atherton, or Palo Alto, you 'know' where the money is from ...

[las vegas drunk]

Dealing drugs

[miamiman]

Originally Posted by Steerpike

I've been in the Phoenix area for about 10 months now, living in Scottsdale and working in North Phoenix. I like it here. I read a lot about the unemployment, the bargain basement housing, etc. But on the other hand, as I explore the place, I come across phenomenal wealth. At restaurants in Scottsdale, I've seen two Ferrari's and a Bentley parked outside; mansions in Paradise Valley; more fancy furniture stores and high-end restaurants than you can count.

I've spent the last 25+ years in the Bay Area (San Francisco/Silicon Valley area) where there is also phenomenal wealth - but there, I know where it comes from - it's obvious (*). But I have no clue where the wealth in the Phoenix area comes from. I know there's a lot of retirees here, and I guess lots of rich folk have second homes here, but I would not have thought that would be enough to explain what I'm seeing here. So where does the money come from?

-----------
(*) - drive around the Bay Area and you'll see the head offices for Google, Intel, HP, AMD, Apple, Genentech, Cisco, Oracle, Charles Schwab, etc -. Then there's the (relatively) 'old money' of the Getty's the Stanford's, etc. So when you drive around Hillsborough, or Atherton, or Palo Alto, you 'know' where the money is from ...

Real estate investors, entrepreneurs, Californians who sold their homes for high prices and moved to AZ, doctors, lawyers, plastic surgeons, heirs and heiresses, retired folks, transplants who acquired money somewhere else, celebrities, etc.

Phoenix has seen a lot of transplants over the years, including wealthy people. Wealthy individuals are attracted to warmer weather and cheaper real estate prices just like your everyday person.

Just because Phoenix isn't a bastion of Fortune 500 companies doesn't mean that there aren't wealthy people.

Also, a lot of what the outward wealth you see here in Phoenix is people who "appear" wealthy. You would never know by looking at them that they're up to their eyeballs in debt, their Bentley is a rental or is leased, they have no furniture in their house, etc. Keeping up with the Jones' is a big part of life in certain parts of the Valley.

[Howard Roark]

Also, a lot of what the outward wealth you see here in Phoenix is people who "appear" wealthy. You would never know by looking at them that they're up to their eyeballs in debt, their Bentley is a rental or is leased, they have no furniture in their house, etc. Keeping up with the Jones' is a big part of life in certain parts of the Valley.

I see the same "$30k millionaires" in Hermosa Beach and the Newport Coast! Poseurs. The other extreme is that there are many more people out there with a high net worth (over $1,000,000) who live very modestly, dress down, drive an economy car, and never worry about whether or not if they get canned from a job.

[locolobo13]

You're seeing them because you're hanging out in Scottsdale & N. Phoenix. If you want to see the other side of our metropolitan area try south central Phoenix.

I don't know what they do in Scottsdale, but the uber wealthy have congregated there ever since I can remember.

[garisonthebull]

There are lots of internet moguls, microchip manufactures, and other computer and technology based business men locally too.

[Ponderosa]

Human smugglers, gun dealers, kidnappers, pimps, and politicians

[Beena]

You'd be amazed how many of those Scottsdale BMWs and Mercedes are parked under a carport at some apartment complex.

Dude is just trying to get laid.

[Howard Roark]

At my apartment complex a 30ish blond woman drives a Porsche Boxster - parked under the carport. I saw a corvette. Of course a bunch of SUVs too. Guess they'd sell them to pay for rent if they would lose their jobs. But if 1 out of 2 people loses their job they won't get much out of those vehicles. The macro economy has systemic ills that won't be fixed until we severely cut government spending and pay off the national debt. This systemic problem will put us in a double dip, or even triple dip recession.

Originally Posted by Beena

You'd be amazed how many of those Scottsdale BMWs and Mercedes are parked under a carport at some apartment complex.

Dude is just trying to get laid.

[las vegas drunk]

Originally Posted by miamiman

Also, a lot of what the outward wealth you see here in Phoenix is people who "appear" wealthy. You would never know by looking at them that they're up to their eyeballs in debt, their Bentley is a rental or is leased, they have no furniture in their house, etc. Keeping up with the Jones' is a big part of life in certain parts of the Valley.

This simply is not true. While I do agree a lot of people live above their means to look more successful than they actually are, they still have to be wealthy to do it nonetheless. Their is NO way to even lease a new Bentley unless you are wealthy. My full time job would not even cover the monthly lease payment alone in itself.