When considering a retirement destination, retirees’ top criteria typically include access to good hospitals, proximity to family and cost of living—including taxes and the cost of buying a home. But these days, you may want to remove that last item from your checklist. With average single-family home prices up nearly 24% since 2020 and home mortgage rates hovering above 6.5%, renting may be a better choice for many retirees who want to relocate.
Kiplinger’s has long recommended renting in a potential retirement destination before buying a house, and that advice is even more compelling now. We’ve selected eight cities that offer appealing options for renters, including quality hospitals and physicians, plenty of green space, and retiree-friendly amenities, such as free classes at local colleges and universities. Because one factor high on retirees’ list of where to relocate is proximity to family, we chose locations spread across the U.S. That means not all the cities on our list are in snow-free climates or income-tax-friendly states.
RENTING VERSUS BUYING
Even if you can afford to buy a home—perhaps with cash from the sale of your existing home—you may have a difficult time finding one that suits your needs. Many homeowners with fixed-rate mortgages of 3% or less are unwilling to sell, even if they’ve outgrown their homes. That has led to a shortage of homes for sale, particularly smaller houses that appeal to downsizing retirees.
This story is from the August 2023 edition of Kiplinger's Personal Finance.
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This story is from the August 2023 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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