I'm a Real Estate Expert: Seniors Shouldn't Overlook These 5 Affordable Cities
It's more important than ever for seniors to seek out affordable retirement cities so they don’t spend their golden years struggling financially.
According to a retirement survey from Schroders, Americans believe that they’re going to need $1.2 million to retire comfortably. However, 51% admitted that they expect to have less than $500,000 saved by the time they exit the workforce.
We consulted with real estate experts about U.S. cities that are often overlooked, but are worthy options for seniors seeking affordable living as they approach their retirement. We included the important metrics (housing costs and the average cost of living for a family per month) and some details about the cities that could attract seniors.
1. Greenville, South Carolina
Average cost of living: $5,730
Average house price: $358,800
Average rent: $1,170
“South Carolina doesn't tax Social Security and gives retirees a big deduction on other retirement income,” said Cameron Walker, a real estate expert and manager of the Agent Network at Clever Real Estate. “There are also low property taxes due to a primary residence assessment tax of 4%.”[1]
Walker said that Greenville is ideal for the retiree who wants nice, warm weather and a charming atmosphere, without having to deal with the overcrowding and overpricing of Florida. The city also has a walkable downtown, Falls Park on the Reedy, the 22-mile Swamp Rabbit Trail and attractive medical care in the form of Prisma Health.
2. Macon, Georgia
Average cost of living: $2,250
Average house price: $141,200
Average rent: $960
“It's often overlooked because retirees immediately think of Florida or the Carolinas, but Macon offers a much lower cost of living while still providing warm weather, a slower pace of life and still access to the amenities and hospitals of big city Atlanta,” said Daniel Amodeo, a real estate expert and president of Amo Realty.
He said that he constantly works with homeowners relocating from higher-cost states like Florida, who are surprised by how much home they could afford in Central Georgia. He also pointed out that Macon is one of those cities that quietly offers a tremendous value without sacrificing the amenities seniors are looking for in retirement.
3. Pittsburgh
Average cost of living: $3,270
Average house price: $204,700
Average rent: $1,280
“Pennsylvania has no tax on Social Security or retirement income, meaning no tax on post-59 1/2-year-old pensions and IRA and 401(k) withdrawals," said Walker.
He believes that this is the best value pick for retirees who prioritize healthcare because you live minutes away from multiple UPMC hospitals and two VA hospitals. He also pointed out that the Carnegie Museums, Three Rivers Heritage Trail and a walkable downtown area make this an enticing location for seniors.
4. Sioux Falls, South Dakota
Average cost of living: $4,920
Average house price: $308,600
Average rent: $1,070
“South Dakota has no statewide income tax, meaning your Social Security payments, pension and retirement account withdrawals stay 100% intact at the state level,” said Walker.
He feels that Sioux Falls is the clear winner for friendliest tax situation. He also brought up that South Dakota has low-cost hospitals and other strong support. With a revitalized downtown, an abundance of recreational bike trails along the Sioux River and other economic support, seniors may enjoy living here if they’re looking to experience all four seasons.
5. Tulsa, Oklahoma
Average cost of living: $2,850
Average house price: $179,100
Average rent: $1,020
Walker said that Oklahoma does not tax Social Security and allows retirees a $10,000 deduction of other retirement income, which means that a small pension gets you more buying power.
“Seniors also get one of the best parks built in the last 10 years (the Gathering Place), the Philbrook and Gilcrease art museums and all the Route 66 history, without the coastal prices,” he said. "The lesser-known cities that offer the most value for retirement locations are the midsized cities with affordable housing, no state tax on pensions and high-quality hospitals."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.