3 Places in America To Retire That Will Be Cheaper by the End of 2024

01/07/2024

senior couple hold hands walking city_iStock-1322993716

Finding a great place to live in retirement doesn’t always have to be expensive. In some cases, you can lower your living expenses while improving your quality of life, such as by relocating to an area with lower housing costs and warmer weather so you can enjoy outdoor activities most of the year.

For some retirees, that means moving abroad to places like Costa Rica or Portugal. But you don’t have to leave the country to find a relatively low cost of living and positive amenities.

In particular, if you’re looking to score a good deal in terms of finding a state to move to that will be cheaper by the end of 2024, consider looking in areas such as some Sun Belt states and parts of the mid-Atlantic. While some areas are experiencing rapidly rising prices, you may be able to find a place to live where costs end up declining by the end of the year.

Find Out: 5 Places in America To Retire That Are Just as Cheap as Mexico, Portugal and Costa Rica

Discover More: The Surprising Way You Can Get Guaranteed Retirement Income for Life

“From recent housing data, the top three markets for retirees are Florida, Texas and Virginia. These markets have tons of housing options that are affordable, low taxes for seniors, great access to medical care and [reasonable] cost of living,” said Armstead Jones, strategic real estate advisor at Real Estate Bees and founder of Imagine Think Tank, a real estate development research firm and consultancy.

Even with these states offering a lot of positive attributes, there’s potential for retirees to be able to find bargains in these areas, especially in regard to housing. “Those three states make sense because the real estate market is stale and [there’s] not much activity as far as sales. This has led to a slight decline in sales prices, which will definitely help retirees reduce expenses,” Jones said.

Let’s take a closer look at what these three states have to offer.

Florida

Statewide, housing values have gone up by 3.2% in Florida over the past year, according to Zillow. But that’s slower than the 4.3% national gain. Certain cities within Florida are driving those increases, yet retirees might find that some other areas are getting more affordable.

For example, housing values in Miami have jumped by 8.7% in the past year. Yet on the other side of the state, along the Gulf Coast, Fort Myers housing values have dipped by 0.3%. And in central Florida, The Villages — a popular retirement community — has experienced a 3% drop in housing values.

Meanwhile, Florida offers other financial advantages, like no state income tax and no Social Security tax. That could help some retirees save money, especially if they plan to work part time. Florida also does not have an estate or inheritance tax.

Trending Now: 3 Cities To Retire In That Are as Awesome as Honolulu and San Francisco but Way Cheaper

Texas

Texas offers similar tax advantages as Florida, like no state income tax, no Social Security tax, and no estate or inheritance taxes. And you can find a wide range of climates in Texas to suit your preferences.

Along the Gulf Coast, you can find beach towns with mostly year-round warm weather, while in northern Texas, you might get a bit more of that winter feeling.

In terms of housing, you may be able to find more affordable options, considering the average home value in Texas is nearly $100,000 less than in Florida — $399,944 in Florida versus $306,756 in Texas, according to Zillow. And these values in Texas have increased by only 1% over the past year, a much slower gain. According to the Texas Real Estate Research Center, “Average overall home price levels could remain flat or, at most, dip slightly” in Texas in 2024.

Additionally, some areas of Texas are seeing declining home prices.

San Antonio — the city with the second-highest net migration of retirees nationwide, according to SmartAsset — has seen median home sale price drop by 3.5% over the past year, according to Redfin. And San Antonio homes spend a median of 46 days on the market — up 11 days year over year — which could give buyers some negotiating power.

Virginia

Virginia might not be the first place you think of when it comes to retirement, but it has several attractive features and could get cheaper by the end of 2024.

In terms of taxes, Virginia does have a state income tax ranging between 2% and 5.75%, but it does not tax Social Security benefits, and it no longer has estate or inheritance taxes. Also, property taxes are lower on average here than in many states — 0.76% in Virginia versus 0.82% in Florida and 1.63% in Texas, according to WalletHub.

Virginia also has lots of great places to live, especially if you enjoy a bit more of that four seasons feeling, though with relatively mild winters. There are beachy communities, historic towns and midsize cities as well.

Statewide, home values have ticked up sharply — 6% over the past year, according to Zillow. But there’s some variability among the many different areas of Virginia, and if you’re patient, you might find a good deal.

For example, in Virginia Beach, the number of homes with price drops is on the rise — 21.5% in May 2024 compared with 16.4% in May 2023, according to Redfin. And in Martinsville, home prices have seen a year-over-year decline, per Redfin. So you might be able to score one at a discount, depending on where you look.

Overall, these three states have the potential to give retirees a great life. Even if not all areas within these states experience price drops, if you do some digging, you might find certain cities or towns offer great deals. At the very least, you can find places where prices are rising slower than the national average while still being enjoyable places to live.

OTHER NEWS

5 hrs ago