According to several real estate analytical studies performed over the previous two years, baby boomers are the most frequent homebuyers in North America. Although they are not the most populous generation, they have the most money. Overall, the data acquired estimates that boomers were responsible for 40% of homebuyers between July 2021 and July 2022.
Baby boomers play an important role in the housing market; it’s important to know where they are going and why. Since the outbreak of war, there has been a general shift to Sunbelt cities, and boomers are no different.
A survey by Bank of America shows that Las Vegas, Phoenix, Tampa, Orlando, and Austin are the “most popular destinations” for baby boomers. But are these cities perfect for those heading into retirement to purchase real estate?
Las Vegas Baby
Boomers are drawn to real estate in Las Vegas more than any other city in the country, and for good reason. The “Sin City” has a lot to offer retirees.
According to various real estate portals like Del Webb, many communities offer a variety of amenities for adults 55 and older. Plus, the city is centrally located, making it easy for people to visit relatives and friends. The city is also located in a tax-friendly state. This means that retirees can save money because they don’t have to pay income tax to the state.
However, living in Las Vegas also has a few disadvantages. Firstly, it can be very hot in the city. Temperatures can reach 100 degrees Celsius in the summer. Seniors can expect higher electricity bills to compensate for the extreme heat.
Also, living in the city is costly overall. According to Best Places, the cost of living in the city is about 11% higher than in the U.S. as a whole.
Phoenix – Valley Of Sunshine
Phoenix is another destination that is popular with baby boomers. The pleasant climate and affordable taxes attract boomers to the city of Phoenix, Arizona. Phoenix is home to many activities and a variety of senior-friendly communities.
However, there are some negative aspects that boomers should be aware of. Phoenix, just like Las Vegas, is very hot. Very hot. Plus, retirees can expect expensive electric bills during the summer months. It can also be difficult to go outside when the temperature is over 100 degrees.
The cost of living in Phoenix is 8.7 percent above the U.S. average, making the city affordable but not cheap.
Tampa – Hidden Gem Of Florida
Florida has long been the most popular destination for older retirees. The city’s coastal location offers pleasant temperatures and plenty of opportunities for active seniors to entertain themselves. The cost of living is only 3.7 percent higher than the average in the United States. Florida, like Nevada, is not subject to income tax for state residents, making it affordable.
If you’re moving to Tampa, you’ll need to be aware of whether you can handle the heat. The city can be uncomfortable at times. According to 55Places.com, it is crowded in some areas, and there is limited public transportation.
Orlando – More Than Just Mickey
Another affordable option for retirees living in Florida is Orlando. The average cost of living in Orlando is only 3.3 percent higher than the median in the U.S. Housing costs are reasonable, and there are plenty of entertainment options.
However, it can be extremely hot in the city. There is also a lot of traffic, and the city is almost always full of tourists.
Austin – Tech Crunching While Keeping It Weird
The last option for baby boomers is Austin. The Texan city has been the most popular attraction in the markets since the start of the pandemic. People who are retired will definitely not be bored in this city. It is home to a renowned music scene and is known for its diverse cuisine. The city has tax advantages and offers a range of retirement communities to choose from.
Austin, like the other cities mentioned above, is a hot place in the summer. Seniors on fixed incomes might be burdened by high utility bills. Plus, the cost of living is 29.4 percent higher than the U.S. average. Homes are expensive: the median price is $577,400.
Fortunately, there are many affordable neighborhoods near the Texas capital that offer similar amenities but are not as expensive.
