What are the Top 10 retirement hot spots for real estate investing?
When buying or investing real estate, the prime directive has classically been “location, location, location.” But a new real estate market trends survey suggests a corollary: Boomers, Boomers, Boomers.
Popular retirement cities, where at least one-third of the population is age 65 and older “will likely be an area of growth in the housing market,” according to a new survey released by RealtyTrac, an online marketplace for real estate data. “The Baby Boomer generation started retiring in 2011, a trend that will continue at least through 2029, ensuring plenty of demand for both rentals and owner-occupant purchases in these markets for the foreseeable future,” observed Darren Blomquist, vice president of RealtyTrac, in a statement
The report found 40 cities nationwide with at least one-third of the population of at least 65 years-old. Of these, 25 posted annual increases in median home prices, while 27 had a positive capitalization rate, which indicates rentals in those markets generate positive cash flow, RealtyTrac concluded.
Half of the RealtyTracc’s Top 10 “retirement hot spot cities are in Florida. Dunnellon tops the list. More than one-third (38 percent) of the population is at least retirement age, and home prices surged more than 31 percent in the past year.
Second is Naples, Florida, where 44 percent of the population is at least retirement age and home prices increased nearly 27 percent. The third best retirement hot spot for real estate investing , according to the survey, is Hot Springs Village, Arkansas. Here, nearly 58 percent of the population is retirement age and home prices increased nearly 26 percent.
Rousing out the Top 10 are: Douglassville, Pennsylvania; Sun City, Arizona (where nearly 73 percent of the population is at least retirement age); North Fort Myers, Florida, Rancho Mirage, California; Punta Gorda, Florida; Sun City Center, Florida; Venice, Florida; and Florence, Oregon.
The most expensive median sales price as of May 2013 was in Rancho Mirage ($430,000), the lowest was in Dunnellon ($76,941).
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.