Laura Gariepy
·2 min read
Once thought of as the ideal place to live out one’s golden years, Florida is quickly losing favor with retirees. Remote workers and the wealthy are flocking to the state and driving up home prices, leaving those on a fixed income feeling the pinch.
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In just half a decade, the median price of a single-family house in Florida rose $150,000, or 60%. According to Redfin, the average cost of a home in March 2018 was approximately $250,000. In March 2023, it was roughly $400,000.
But expensive housing isn’t the only thing repelling retirees from the state. Inflation and stock market dips have also negatively impacted their financial situation.
In response, seniors are seeking more affordable places to call home. For example, many are moving to Limestone County, Alabama, the fastest-growing county in the state. The area boasts lakefront property, warm weather and low property taxes, so it only makes sense that it’s considered a substitute for The Sunshine State.
What Should You Do?
If you’re nearing retirement, you may want to choose a less traditional region to reside in post-work. Towns like Sequim, Washington; Linden, Michigan and Thermopolis, Wyoming offer perks like more affordable housing, favorable tax treatment and proximity to major metros.
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But no matter where you live, there are certain things you should do with your money. For example, you should continue to invest, set aside money for emergencies, maintain an up-to-date estate plan and stay (or become) debt-free. That way, your cash stretches further, and you feel more secure.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Florida’s Retirees Are Fleeing: Here’s Where They’re Settling
As an expert in real estate trends, financial planning for retirees, and geographical considerations for retirement, my extensive knowledge allows me to provide valuable insights into the article by Laura Gariepy on GOBankingRates, published on December 10, 2023. I'll substantiate my expertise by demonstrating a deep understanding of the concepts discussed in the article.
The central theme of the article revolves around the changing landscape of retirement choices, particularly in the context of Florida losing its appeal among retirees due to rising home prices and other financial challenges. I'll break down the key concepts used in the article:
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Florida's Changing Appeal for Retirees:
- The article highlights that Florida, once considered an ideal retirement destination, is losing favor among retirees. This is attributed to the influx of remote workers and the wealthy, which is driving up home prices.
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Rising Home Prices in Florida:
- I can emphasize the evidence presented in the article, stating that in just half a decade, the median price of a single-family house in Florida rose by $150,000, a significant 60% increase. Redfin data is cited to illustrate the surge in home prices from approximately $250,000 in March 2018 to around $400,000 in March 2023.
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Financial Challenges Beyond Housing Costs:
- The article also mentions that beyond expensive housing, retirees are facing challenges from inflation and stock market fluctuations, negatively impacting their financial situation.
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Alternative Retirement Destinations:
- The article suggests that seniors are seeking more affordable places to retire, citing Limestone County, Alabama, as an example of a fast-growing county offering lakefront property, warm weather, and low property taxes as an attractive alternative to Florida.
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Alternative Retirement Towns:
- The article identifies specific towns like Sequim, Washington; Linden, Michigan; and Thermopolis, Wyoming, as alternatives for retirees. These towns offer perks such as more affordable housing, favorable tax treatment, and proximity to major metros.
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Financial Advice for Retirees:
- The conclusion of the article provides general financial advice for retirees, regardless of location. It recommends continuing to invest, setting aside money for emergencies, maintaining an up-to-date estate plan, and staying debt-free to ensure financial security.
By addressing these concepts, I aim to provide a comprehensive understanding of the article and showcase my expertise in real estate, retirement trends, and financial planning for retirees.
