4 Cities Getting Popular With Boomers: Should You Consider Them for Your Retirement Years?
It probably won’t shock economically jaded millennials or Gen Zers that baby boomers are still the dominant force in the housing market. Even though they’re no longer the largest generation by population, boomers control the largest share of U.S. wealth, and that money is shaping the hows, wheres and whens of who can stop working and afford a place to live simultaneously.
As more of the older generation reach full retirement age, their housing choices are increasingly influencing home prices, inventory and demand, especially in popular retirement destinations. Here are four cities gaining popularity with retired baby boomers, and why they may (or may not) make sense for your own retirement plans.
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Charleston, South Carolina
Average home value: $589,607, up 0.5% over the past year
According to Council of Seniors, “Historic charm and Southern hospitality draw many to Charleston.” Many retirees gravitate toward this city thanks to its moderate climate, which lends itself well to being walkable and seasonally enjoyable.
If you want some more active gold years, this might be the destination for golfers and boating enthusiasts alike. Boomers currently love it thanks to significant tax advantages, such as no tax on Social Security and various deductions for seniors.
However, the forecast for moving to Charleston isn’t always sunny, as it has a high cost of living (11% above the national average) as well as significant flooding risks, which could spike your homeowners' insurance through the roof.
Las Vegas
Average home value: $426,583, down 2.7% over the past year
Many boomers are taking the gamble of relocating to Las Vegas rather than other popular retirement destinations throughout the country, and for good reason. Sin City offers a lot to retirees.
As noted by Del Webb, there are countless 55-plus adult communities with endless amenities. The city is also centrally located, making it easy to travel to see friends and family. It's also in a tax-friendly state, meaning retirees can save big by not having to pay state income taxes.
Unfortunately, there are some negatives to retiring in Las Vegas. Foremost, the city is hot. Temperatures often exceed 100 degrees Fahrenheit in the summer months. Retirees will have to budget for higher utility bills to compensate for the oppressive heat.
Scottsdale, Arizona
Average home value: $413,499, up 0.0% over the past year
As a big part of the greater Phoenix metropolitan area, Scottsdale comes with a warm climate and reasonable taxes, which have boomers flocking to the Arizona city.
There are, however, a few downsides for boomers to consider. Scottsdale, like Vegas, is hot. Very, very hot. Again, retirees will need to budget for high electricity bills during the summer. The heat might also make it more difficult to get outside when the temperature is over 100 degrees.
The cost of living in Phoenix is between 14% and 15% higher than the national average in the U.S., making it affordable but not cheap.
Tampa, Florida
Average home value: $374,888, down 3.5% over the past year
For decades, Florida has been the go-to retirement destination for seniors. The coastal city offers warm weather and lots of things to keep active retirees busy.
It has a very reasonable cost of living at just 3.7% higher than the average in the U.S. Moreover, Florida, like Nevada, does not have state income taxes, making it even more affordable.
After making the move to Tampa, retirees should consider whether they can handle the humidity. The city can be downright uncomfortable at times. It is quite congested in some areas and there's only limited public transportation, according to 55Places.com.
Crystal Mayer contributed to the reporting for this article.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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