With the age of retirement slowly rising for many of the nation’s older population, those approaching this significant milestone will likely look for the perfect place to live after they leave the workforce. With some seniors saying they want to live someplace warmer or want to downsize from their current home, there are plenty of reasons for future retirees to move somewhere new.
Whatever location retirees choose, renting is a cost effective option for those hoping to live their golden years the way they want to. Kim Reding, an investment location manager (ILM) for HomeUnion® based in the Dallas-Fort Worth market, said seniors often choose to live in single-family rentals because of the flexibility renting allows compared to owning a home. Not only does renting give them the option to move where they want to without the burden of a mortgage following them, they can also benefit from living in areas with low costs of living to save money and extend their retirement savings, according to Reding.
As seniors move to low-cost markets, investors in these areas should consider buying up single-family homes to meet demand from seniors hoping to enjoy their rest of their lives in a new city.
Here are five cities for seniors to live out a comfortable retirement:
Retirees may be attracted to Indianapolis for its low cost of living and the city’s rich culture, according to a list by Ilyce Glink for CBS News. Retirees can live out their post-work years comfortably as this city’s cost of living is 12.8 percent below the average nationwide. Having low living expenses could be ideal for retirees who plan on having a limited or fixed income during retirement.
Forbes named Austin one of the 25 best places to retire in 2014. Reding, who grew up in Austin, said retirees may want to live in rentals because they do not have to worry about the cost of repairs and maintenance associated with owning a home. Austin is a great place to retire for seniors who want to rent single-family homes and live independent lives by themselves as Forbes highlighted the city’s low crime rate.
Florida’s warm weather might be a major draw for many seniors. Miami has a large percentage of seniors living in the city, with retirees accounting for 1 in 4 residents, according to the National Association of Realtors. The city is also seeing more seniors come to the city. Of the older population packing their bags, 12.6 percent of seniors are moving to Miami. In general, Florida has the most retirees moving to the state. While Miami is popular, other cities like Jacksonville might be more affordable for seniors since it has an affordability ranking of 20 for cities for retirees compared to Miami at 48, according to Wallet Hub.
Another one of Forbes’ great retirement locations for 2014, Pittsburgh is great for seniors looking to maintain a healthy yet active lifestyle. Pittsburgh has a great doctors per patient ratio. Forbes also Pittsburgh’s features, such as bicycling and walkability, as the reason for its high scores among seniors. The city is also ranked No. 12 in the nation for activities for retirees in Wallet Hub’s list for “Best Places to Retire.”
Retirees often cite traveling as one of the things they want to do during retirement. With the ability to voyage to Alaska by ferry, Bellingham, Washington, is an ideal place for seniors with a penchant for exploration. The city has a high walkability score, according to Forbes, which still allows seniors to sightsee closer to home, especially with views overlooking the coast.
Whether seniors want to relax or have an active lifestyle, retirees are deciding to move into rental homes across the country to make the most of their retirement income. Investors should consider working with a trusted real estate investment firm to make the right choices in selecting rental properties for seniors.