Yahoo Finance 8 Popular Retirement Destinations That Could Become More Affordable in the Next 5 Years
Many people downsize and relocate when they retire, often with the thought that the new location will meet their needs better than their current one. While every retiree has their own circumstances and needs something different, a common denominator is the cost of living.
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If you’re thinking about retiring, or if you know someone who is, you might be wondering which popular retirement destinations are likely to become more affordable in the near future. Here are eight of the main ones, according to experts.
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Port St. Lucie, Florida
Florida has long been on the list of popular retirement destinations. This is partly due to the weather, but cost also plays a big role.
Many cities in Florida are pricey, but Port St. Lucie is one that might drop a little in the next few years.
“Nestled along Florida’s Treasure Coast, Port St. Lucie offers a more laid-back and affordable alternative to some of the busy coastal cities with its lower cost of living and growing healthcare facilities,” said Larry Mastropieri, real estate broker with The Mastropieri Group and owner of Discover South Florida.
“Unlike most major cities in South Florida, PSL has land! This means the city has ample room for expansion, offering the potential for new developments and amenities tailored to retirees,” he continued. Plus, the area seems to prioritize accessible healthcare, entertainment, and establishing a welcoming environment for seniors.
The current average home value in Port St. Lucie is $394,102. This is almost a 58% drop from last year.
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Deltona-Daytona Beach-Ormond Beach, Florida
Located north of Orlando is another popular destination, the metropolitan area of Deltona-Daytona Beach-Ormond Beach.
“This area provides lower housing costs while still giving you access to beautiful beaches, outdoor recreation, and a slower pace of life,” said Mastropieri. “While it’s slightly north of South Florida, it’s close enough to be an attractive option.” The area also supports a more active retirement lifestyle, he said.
The typical home is valued at $342,141. This is a 61% drop over the past 12 months.
Alexandria, Louisiana
Still considered a relatively small city, Alexandria makes the list as a popular destination for retirees that may well become more affordable in the coming years.
“Alexandria is a city that has become more and more popular for retirees, and it is pretty great in terms of affordability,” said Seamus Nally, CEO of TurboTenant. “It’s largely considered one of the most affordable cities in the US — and it’s a city that has a vibrant atmosphere and tons of things to do for people of all ages, including retirees.”
Nally went on to say that Alexandria is worth looking into for those who are about to retire and for those who’ve already done so. The average cost of a home in Alexandria is $120,578, a slight decrease from 12 months ago.
Prescott, Arizona
Prescott has gone up in price over the years, but its tax-friendly laws and lower-than-average cost of living could make it an attractive option for retirees on a budget.
“The Grand Canyon state is one of the most retiree-friendly places in the country, with its ideal climate and beautiful natural setting. Arizona is also attractive for retirees since it boasts low-income taxes and no state taxes on Social Security,” said Nicholas McMillan, founder of Hire Realty LLC. “Prescott eases the condition even more with its below-average living costs.”
One of the biggest expenses in Prescott real estate. A typical home costs about $597,416. This is above the national average, but prices are dropping. Apartment rentals and other everyday amenities are also more reasonably priced.
Decatur, Alabama
Ideally for retirees who want to escape the winters and buy a more affordable home is Decatur, Alabama. The typical home value is $207,257 and has dropped in the past 12 months.
“Decatur, Alabama is one of the underrated places on this list. With a median home value way lower than the national average, it is an excellent place for retirees. The Tennessee River is also situated near the area and offers affordable options for outdoor recreation,” said McMillan.
Taxes are another big consideration for retirees.
“Did I tell you that the tax situation is also attractive? Alabama doesn’t tax most pension incomes and Social Security,” said McMillan. “On top of that, you are exempt from state property tax if you are a homeowner aged 65 and older.”
Hot Springs, Arkansas
Hot Springs is another popular retirement destination and for good reason. It boasts beautiful natural scenery and affordable prices. The average home is valued at $236,035 and has gone down significantly in the past year.
“Hot Spring, Arkansas is a retirement hotspot with 47 hot springs, two bathhouses, and much more! There are numerous spa and massage options available in the city itself, so the tranquil experience also continues there,” said McMillan. “Seniors’ access to housing and healthcare is affordable, at 24.1% and 12.2% lower than the national average.”
Tamarac, Florida
Tamarac, Florida is also known for its lower property taxes and overall affordability. The typical home costs $320,758 and has gone down by 58% in the past year.
“Tamarac stands out for its accessibility to city amenities while offering a quieter residential environment,” said Mastropieri. “[This] makes it a continued draw for retirees.”
Panama City, Panama
For those looking to move a little further from home, Panama is worth checking out. It’s been a popular retirement destination for U.S. expats for some time now and has a lot to offer in terms of affordability, amenities, and metropolitan life.
“This has been termed as one of the best places to retire by the Global Retirement Index — and why would it be not? It is close to USA; however, the living expenses are almost 58 percent lower,” said Nick Hedberg, realtor and contractor with As-is Homebuyer. “Talk about a good deal!”
Panama also has a good healthcare program and a visa option that might lead to some tax exemptions.
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This article originally appeared on GOBankingRates.com: 8 Popular Retirement Destinations That Could Become More Affordable in the Next 5 Years
