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Retirees and Young Buyers Compete for Hot Housing Markets Across the US
Retirement often signals a time for strategic homeowner decisions, particularly when it comes to relocating to areas rich in amenities and services that cater to an aging population. However, a surprising trend is emerging: retirees are increasingly vying with younger buyers for the same desirable properties.
Stephanie Pascal, a San Francisco-based real estate agent with Nova Real Estate, observes this competitive landscape firsthand. “The most common scenario I see in this category is the desire to remain active and live in walkable neighborhoods with access to recreation, restaurants, and the arts,” Pascal explains. “So, they are competing with young starter-home buyers wanting the same.”
With this in mind, several real estate markets across the country are poised for significant price increases.
1. Sarasota, Florida
For many retirees in colder climates, a move to a warmer, sunnier locale is a top priority. Sarasota, an arts-focused city on Florida’s Gulf Coast, is a prime example.
Kyle Bazylo, CEO of Selling South Winnipeg in Manitoba, notes its appeal: “Places like Sarasota, Florida, are in high demand, not just for the weather but also for the active lifestyle options and accessible health care.” Justin Tanos, founder of We Buy Houses In OC in Orange County, California, echoes this sentiment, adding that Gulf Coast cities like Naples and Fort Myers fall into a similar category.
Tanos anticipates considerable property price growth due to “a continued trend of low inventory and high demand.”
2. Vero Beach, Florida
Vero Beach is gaining traction among retirees drawn to its relaxed atmosphere, picturesque beaches, and vibrant arts and cultural scene, according to Zev Freidus, president of ZFC Real Estate in Boca Raton, Florida. While previously “under the radar,” Freidus expects this to change.
He’s already seeing a trend of retirees “cashing out on properties in high-cost areas and moving to places like Vero Beach, where their money can go further.” The city also offers ample homes suitable for multi-generational living, an attractive feature for some.
3. Coeur d’Alene, Idaho
Not all desirable retirement spots are in the Sunbelt. Bazylo highlights Coeur d’Alene, Idaho, as “equally desirable” and “worth watching.”
Despite a surge in home prices post-COVID-19, its amenities continue to attract. Bazylo notes the town offers “a relaxed pace, scenic surroundings, and – until recently – relatively affordable real estate.”
He predicts “double-digit growth in prices as inventory tightens” due to increasing retiree interest.
4. Scottsdale, Arizona
Arizona cities, particularly Scottsdale, are becoming even more appealing to retirees, says Tanos. Known for its “desert beauty, luxury amenities, and sunny weather,” Scottsdale attracts active retirees with its golf courses, resorts, and diverse lifestyle options. This popularity has led to scarce inventory, and Tanos expects that “limited supply in the face of growing demand means Scottsdale’s property values are likely to rise even more.”
5. Santa Fe, New Mexico
Another Southwestern gem, Santa Fe, New Mexico, is drawing retirees from both the U.S. and Canada. Adam Chahl, founder of Vancouver Home Search, points to its renowned arts scene, historic architecture, and mild climate as key draws. Chahl believes that while “prices in Santa Fe have already been on the rise,” the trend will continue, especially as more retirees are attracted to its “rich cultural life and serene landscapes.”
6. Newport Beach, California
For those dreaming of a California coastal retirement, Newport Beach remains a perennial hotspot. Rachel Stringer of Raleigh Realty in North Carolina notes the “obvious appeal” for those with “a bit more money to spend” seeking a high quality of life and scenic beach views.
Its enduring popularity ensures that Newport Beach continues to see soaring prices. Stringer remarks, “It’s one of those places where once you get a foothold, you’re rarely looking to leave.
The demand pushes prices higher as more retirees look for that kind of coastal lifestyle.”
7. Myrtle Beach, South Carolina
Myrtle Beach, South Carolina, is a city retirees should keep on their radar, according to Chahl. He anticipates “price increases” due to its “relatively affordable real estate, paired with beautiful coastlines and a welcoming community.” Beyond its natural beauty, Myrtle Beach offers financial incentives, including a lower cost of living and South Carolina’s tax benefits for retirees, which Chahl believes “will continue to push demand.”
8. Corpus Christi, Texas
Despite recent hurricane activity in Florida, coastal retirement areas remain attractive. Scott Friedson, CEO of large loss public adjusting firm ICRS in Austin, Texas, points to Corpus Christi’s “resilience against weather-related incidents.” Friedson observes that in this city, “property values not just stabilize but sometimes increase post-recovery due to rebuilt infrastructure and improved community features.”
9. Austin, Texas
While Austin famously encourages residents to “keep it weird,” its outskirts offer a more balanced lifestyle appealing to some retirees. Tanos highlights suburbs like Georgetown and Round Rock, which provide “a quieter lifestyle while keeping Austin’s cultural and entertainment perks close by.”
He notes that “as retirees and young families move here, the demand has outpaced supply, leading to price increases across the board.” Friedson concurs, stating these areas “consistently see increased investment and interest from retiring individuals seeking a peaceful yet convenient living environment.”
The Bottom Line
The trend of retirees prioritizing a high quality of life, even if it means a premium price, is driving up real estate values in these desirable markets. As Bazylo explains, “In my experience, retirees today are more willing to invest in areas that offer a high quality of life, even if it means paying a premium.” Making informed real estate choices that align with fiscal goals and allow for a comfortable lifestyle within one’s means remains paramount for a successful retirement.