The steep rise in housing prices over the past few years has proved a problem not only to prospective first-time home buyers but also to retirees intending to move for retirement. This rapid increase in home costs has made it more difficult for those with fixed incomes to afford a home.
For those already retired or getting close to retirement age, thinking about where to live next is common. On a fixed retirement budget, one has to keep an eye on expenses, and the reality is that so many retirement towns are now well beyond the average retiree’s affordability range. Below are three traditionally popular retirement towns that have become less affordable.
Sedona, Arizona
For many years, the State of Arizona remained the most favored one by retired senior citizens. Sedona is reportedly the finest among the cities in this particular state for retirement due to the nice climate and availability of several amenable services.
This city’s pleasant climate, partially due to its higher altitude, allows it to provide almost 300 sun-soaked days a year. Its elevation helps to prevent Sedona from reaching intense heat, as seen in some parts of the state.
“Sedona has a strong focus on wellness and spirituality, with many spas, wellness centers, and holistic health services,” says Martin Boonzaayer of The Trusted Home Buyer. Its hiking, biking, and outdoor photographic activities draw in many active retirees.
It’s those very same amenities that have made Sedona more expensive. While the average home price across Arizona sits just under $435,000, the price in Sedona is now nearly $950,000. According to Boonzaayer, demand has far outstripped supply, leading to steep price increases for the high-end in particular. “The rise of short-term vacation rentals has reduced the availability of long-term housing, driving up rental prices,” he adds. Tourism assisted in the raised cost of services, dining, and necessities. While tourism is needed to keep the local economy afloat, it in turn is helping to create cost of living issues, especially for retirees living on fixed incomes in Sedona.
Asheville, North Carolina
For generations, Asheville has been a leading retirement spot due in large part to its natural beauty—partly from being right next to the Blue Ridge Mountains. Richness in the plethora of amenities within this mild year-round climate, top-rate medical care, and ample outdoor activities make for a desirable place to retire.
“The median home price in Asheville has surged to about $483,000, quite a spike from years ago,” says Associate Broker Colten Claus of 8z Real Estate. Coupled with the very low supply of homes, this rapid appreciation in home prices has made finding affordable housing options for fixed-income retirees much more challenging.
Naples, Florida
Florida remains the number one destination for retirees and snowbirds. Naples is considered an even more desirable area to many due to its beautiful white beaches, golf courses, and desirable weather throughout the entire year. Naples also has a good healthcare system, fantastic dining options, and high-end shopping.
The downside is that Naples’ home cost has appreciated tremendously in the last decade. “The demand for retirement homes in Naples has skyrocketed, leading to a dramatic increase in property values,” says Claus. The median price of a single-family home has sharply increased in Naples to now around $595,000. The increase has made this once popular retirement area out of budget for many retirees looking to retire in Florida.
These affordability challenges need to be kept in mind while considering options for retirement living.
