Yahoo Finance In Less Than a Decade, Many Boomers Won’t Be Able To Retire in These Popular Places
Choosing where to retire is maybe the single biggest choice you will make in retirement. Do you want to stay put or downsize? Move closer to family or relocate somewhere that offers the most attractive lifestyle?
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There are a lot of considerations that go into choosing where to live in retirement, but price is probably the most important. Living on a fixed income means you won’t have the flexibility to respond to rising housing prices and cost of living increases. If you’re a baby boomer and likely facing retirement soon — if you aren’t already retired — it’s important to know where you have a high chance of getting caught up in a living situation you can’t afford. GOBankingRates spoke to experts to find the popular retirement spots that most boomers will soon be unable to afford.
Mike Farah, in addition to being a licensed realtor, is a real estate attorney and founder of The Farah Law Firm. He shared his insight on retirement destinations that are fast becoming out of reach.
Bakersfield
Warm, dry and within an hour or two of the countless attractions in the Los Angeles metropolitan area, Bakersfield has been an attractive choice for retirees who want that Southern California lifestyle at a reasonable price.
“Bakersfield is still seen as relatively affordable compared to other parts of California, but it’s quickly getting pricier, and in the next 10 years, it will likely be too costly for many boomers. It’s expected to see a growth rate of 13.4%, with a predicted average home value of $520,933.24. With this kind of increase, those looking to buy a home in Bakersfield should know that the real estate market might become as intense as the local climate,” Farah said.
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Orlando
Florida is such a popular retirement destination that it’s almost become a punchline, but the warm weather and low taxes continue to be a big draw for retirees all over the country. That popularity comes at a cost, however.
“Orlando’s constant sunshine might seem perfect, but its housing market is set to become too expensive soon. With a forecasted average home value of $517,913.99 by 2025, this city, known for Disney World, is still expected to see housing demand continue to rise. Finding a home in Orlando could be tough for the next 10 years,” Farah said.
Minneapolis
You might not expect a city with serious winters to be a retirement destination, but Minneapolis is also the 13th happiest city in the U.S., according to a 2024 study from WalletHub. It’s also one of the bike-friendliest, with over 100 miles of off-street bikeways and trails.
“Minneapolis is expected to become unaffordable in the next decade. The city, split by the Mississippi River, offers abundant green spaces and beautiful lakes that would appeal to anyone who loves the outdoors. Given its excellent real estate, strong job market, and increasing home values, it’s no surprise that Minneapolis is nearing a point of unaffordability,” Farah said.
Eleanor Campbell, a long-time realtor with 17 years of experience in the real estate industry, currently works with ContractorBond as a property consultant and she shared her top choices below.
San Francisco
People of all kinds have been getting priced out of San Francisco for years now, and retirees are no exception. Nevertheless, San Francisco remains an incredibly attractive destination, offering a very mild climate and a vibrant culture.
“This city has been continually ranked as one of the most expensive cities to live in the U.S. The median home value on Zillow is $1,290,678 … According to a recent study by SmartAsset, San Francisco is one of the top cities where boomers are relocating but with the current trend of rising prices, it may not be a feasible option for them in the long run,” Campbell said.
Los Angeles
The city of angels, and the massive metro that sprawls all around it, offers a warm climate and countless amenities, from theme parks to beaches. Southern California is famously pricey, however, and that doesn’t look set to change any time soon.
“I have seen that this city is already experiencing soaring housing costs which make it increasingly unaffordable for retirees on fixed incomes. According to Zillow, the median home value in Los Angeles is $974,105. The cost of living index on Numbeo.com is 83.57% and the quality of life index is 140.85%, which shows a high level of cost of living and a moderate level of quality of life. The minimum combined sales tax rate for Los Angeles County, California in 2024 is 10.25%, inclusive of both state and county sales tax rates,” Campbell said.
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This article originally appeared on GOBankingRates.com: In Less Than a Decade, Many Boomers Won’t Be Able To Retire in These Popular Places
