People Relocating in Record Numbers - Retirees Have Many Options
A change of scenery is often uplifting for many people. Moving can improve your psychological well-being and improve your pocketbook. Many recent retirees have started the relocation process, which could benefit you.
Recent economic uncertainty is encouraging people to consider moving somewhere where the cost of living is less. Moving to a more affordable will stretch your savings, alleviating some uncertainty about your financial future. The goal would be to find a location that balances your ability to maintain financial security and your quality of life.
Lots of People Moving
People are moving at record numbers, with 32.6% of Redfin.com users nationwide looked to move from one metro to another in the second quarter, up slightly from 32.3% in the first quarter and roughly 26% before the COVID-19 pandemic, according to a new report from Redfin an online real estate brokerage.
While the report looks at all users, many are sure to be recent retirees looking to take advantage of their home value and relocate to more affordable areas.
"Tampa is still attracting a lot of out-of-state homebuyers, coming from places like New York, who can get more for their money in Florida," said Eric Auciello, a Redfin manager in Tampa.
The spike in mortgage rates has priced some buyers out of the market, but it has also helped ease competition and curb bidding wars between locals and out of towners. A lot of buyers who kept getting outbid at the peak of the market are now getting their offers accepted, and in some cases they're even able to use FHA loans, make smaller down payments and keep the appraisal contingency.
Eric Auciello
Movement into San Diego and San Antonio is also on the upswing, with a higher net inflow in the second quarter than a year earlier. Los Angeles is a common origin for people relocating to both of those places.
Florida Wins Big
Florida seems to be a top destination for many people. Two main reasons retirees like Florida are the low taxes and, of course, great winter weather. Florida is one of the seven states in the country that has no state income tax.
The top ten metros people are relocating to, according to Redfin:
Miami, FL
Tampa, FL
Phoenix, AZ
Sacramento, CA
Las Vegas, NV
Cape Coral, FL
San Diego, CA
North Port, FL
San Antonio, TX
Dallas, TX
Relocation to Sacramento and San Diego seems to come mainly from the Bay Area and Seattle. Places people are leaving include New York, California, and Illinois.
Relocation Considerations
Relocating to another part of the country once you retire can be a perfect opportunity to improve your financial situation and get better health care options. But there is more.
For some people, the lower cost of living provides more money to enjoy life and travel. Better climate and access to the water, or the mountains, can also add to your quality of life.
Relocating means several considerations. Think about your family and easy access to transportation for the family to visit you and you visit family. Think about the availability of quality health care, including long-term care services. Climate is another thing to consider. Don't move to Florida, for example, unless you like warm weather and humidity - or think you can get used to it.
Crime has become another thing to consider before moving. Some people report wanting to leave high-crime areas like Chicago or Los Angeles, but you will find crime nationwide.
Relocation can be something to consider as you prepare for post-retirement. You are only limited by your imagination and your budget. Few places are perfect, but nothing forces you to stay put once you are retired. Be sure to prepare for retirement by saving money in your retirement accounts and considering the costs and burdens of aging
Long-Term Care Costs Increasing Rapidly
Long-term health care costs vary dramatically depending on where you live. The LTC NEWS Cost of Care Calculator will show you the current and future cost of care services - Cost of Care Calculator - Choose Your Location.
LTC Insurance is often part of retirement planning. Several resources are available on LTC NEWS to help you learn about your options - Resources for Long-Term Care Planning.