Yahoo Finance 3 Reasons Baby Boomers Are Leaving These 5 Cities
Retirement is proving to be a fresh start for baby boomers in certain major cities. While they may have called these metropolises home for decades, they are now relocating to call other metros home during their golden years in retirement.
Bank of America recently published data revealing which cities baby boomers are fleeing at the highest rates. Here’s a look at which cities they’re leaving, along with some of the most common reasons why these cities are no longer ideal for retirees.
Also here are five cities that are becoming popular among boomers.
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Washington, D.C.
Reasons why retirees are leaving: Exorbitantly high cost of living, high property crime rates.
Annual expenditures for Washington, D.C., households average $94,171 — compared with the $72,967 U.S. average — according to the Bureau of Labor Statistics. Median rent in the city is $2,500 per month, according to Zillow.
Additionally, cost of living in the area is calculated to cost 47% more than the national average, according to Redfin. Categories included in this cost of living percentage include housing, groceries, utilities, transportation, healthcare and lifestyle such as non-essential expenses like purchasing a morning latte or getting a haircut.
The city also earned a “D+” rating for its high volume of violent and property crime rates, according to Niche.com. Notably, the level of theft and motor vehicle theft is well above the national average.
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New York City, New York
Reasons why retirees are leaving: Exorbitantly high cost of living, high property crime rates.
The cost of living in Manhattan, according to Redfin, is a staggering 127% higher than the national average. Households in the New York City Metropolitan Area have an average expenditure of $83,064 per year, according to the BLS. Median rent is $3,573 per month, which is $1,448 more than the national median, according to Zillow.
The city earned a “C-” rating for violent and property crime rates on Niche.com. Most notably, the level of assaults and robberies were above the national average.
San Francisco , California
Reasons why retirees are leaving: Overpriced housing, exorbitantly high cost of living, high property crime rates.
The average annual household expenditures in San Francisco total $101,880, according to the BLS. In less than shocking news, the BLS noted that housing accounted for 40.6% of the area’s household budget which is much higher than the U.S. average of 33.5%.
Of course, that’s not all that’s more expensive in San Francisco. Redfin estimates that the cost of living in San Francisco is 71% higher than the national average.
San Francisco earned a “C-” rating for violent and property crime rates on Niche.com. The latter was especially notable, as theft, motor vehicle theft and burglaries were all above the national average.
San Jose, California
Reasons why retirees are leaving: Overpriced housing, exorbitantly high cost of living, high property crime rates.
It should come as no surprise that living in Silicon Valley isn’t cheap. For example, the median home sale price is $1,500,000, up 13.6% compared to 2023 according to Redfin. The median rent is $2,900, which Zillow said is $788 more than the national median.
Of course, that’s not where the over-the-top cost of living ends. To live in San Jose, residents are paying cost of living expenses that are 75% higher than the national average according to Redfin data.
As for crime and safety, the city has a “C-” rating, based on the volume of violent and property crimes per annum, according to Niche.com. Motor vehicle theft is a major problem in the area.
Seattle, Washington
Reasons why retirees are leaving: Overpriced housing, exorbitantly high cost of living, high property crime rates.
Living in Seattle comes with average annual expenditures of $93,905, according to the BLS. Residents also pay a median $2,049 in monthly rent, according to Zillow.
How does the cost of living shake out? According to Redfin, it costs 45% more than the national average.
Seattle also earned a “C-” rating for crime and safety on Niche.com. Property crime is especially high, with burglaries and motor vehicle theft all more than double the national average.
Why Retirees May Be Leaving These Cities
“Baby boomers are leaving cities like D.C., New York, San Francisco, San Jose and Seattle for retirement due to various factors, with the high cost of living being a significant concern,” said Eliza Arnold, co-founder and CEO of retirement savings platform Arnie.co. “These cities are known for their expensive housing, higher taxes and overall elevated living costs, which can be burdensome for retirees on fixed or reduced incomes.”
Of course, money might not be the only reason retirees are fleeing these five urban areas.
“Additionally, the fast-paced and crowded urban environments might not align with the more relaxed lifestyle that retirees often seek,” she said. “Access to quality healthcare and climate preferences also play a role in their decisions.”
Where These Retirees Might Move Next
Each retiree leaving these five cities has a unique story. Arnold noted that some may choose to stay relatively close to the city they’ve decided to leave in retirement, while others will choose an entirely different locale.
“Some baby boomers might choose to relocate within their current state to less expensive areas, seeking affordability while staying close to their social networks,” she said. “Others may opt for out-of-state retirement, looking for locations with lower living costs, favorable tax environments and climates that better suit their preferences.”
While each retiree has their own unique plans for a home in their golden years, the Bank of America survey revealed popular retirement destinations for baby boomers include Las Vegas, Phoenix, Tampa, Orlando and Austin.
Generally speaking, Arnold said, active adult communities or retirement villages also tend to be popular choices, as they offer amenities and social activities specifically geared toward seniors.
“Ultimately, where to retire is a personal decision, shaped by individual preferences, financial considerations and lifestyle priorities,” she said. “Finding the right place for retirement is about creating a fulfilling and comfortable future in line with their unique needs and desires.”
Heather Taylor contributed to the reporting for this piece.
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