American retirees who have been priced out of Florida are now landing up the coast in Alabama, where the same warm weather and stunning beaches come at a fraction of the cost.
Retired financial planner John Fox, 70, and his retired plastic surgeon wifeDr.Louise Turkula, 67, of Long Lake, were hoping to join their friends in Jacksonville or Naples, Florida, during their retirement, but quickly found their finances didn't quite stretch to what they were looking for in the Sunshine State.
Instead, the couple headed north to neighboring state, Alabama, and dished out a cool $955,000 for a four-bedroom, 3,000-square-foot home on Ono Island in Baldwin County - the fastest growing in the state as older Americans flock for cheaper mortgages and property taxes.
Turkula's brother lived on the island, but that didn't stop Fox from being shocked that he had actually purchased land in theYellowhammer State, giving up his dreams of waking up on the warm beaches in Florida.
'I’m actually moving to Alabama,' he recalled thinking in disbelief to the Wall Street Journal. He worried about moving to Deep South as a progressive, but after visiting his wife's sibling, his nerves were calmed as he realized his future neighbors had a wide range of interests and opinions.
John Fox, 70, and his wife Dr. Louise Turkula, 67, of Long Lake, were hoping to join their friends in Jacksonville or Naples, Florida, during their retirement, but quickly found out their humble Minnesotan savings wasn't enough to stake a claim in the Sunshine State
The couple headed north to neighboring state, Alabama, and dished out a cool $955,000 for a four-bedroom, 3,000-square-foot home (pictured) on Ono Island in Baldwin County - the fastest growing in the state as older Americans flock for the cheaper mortgages and property taxes
Ono Island and Orange Beach (pictured) - both popular coastal spots in Alabama - sit off the Gulf of Mexico
Now the happy couple start and end their day poolside in their private backyard, where they enjoy the soothing sounds of the Gulf of Mexico, locked away on their gated island, which is only accessible via one bridge.
'Mornings are outside with a cup of coffee; in the evening, it’s wine,' Turkula said.
The retired financial planner and former plastic surgeon purchased their Southern palace in July 2022 and spend their winters there, enjoying summertime in their home state.
Fox and Turkula aren't the only couple ditching the Ron DeSantis-run state. The average income in Baldwin County is just $49,000, bringing the median home price $355,000.
In popular Florida destinations, like Fort Lauderdale and Fort Myers, the average income is between $57,000 and $67,000, and home prices average between $378,000 and $411,000, according to WSJ.
Ono Island (pictured) sits in Baldwin County, which is the fastest growing county in the state from 2010 to 2020. Many older couples have moved to the county as they've become priced out of Florida
The average income in Baldwin County being $49,000, bringing the median home price $355,000.Compared to popular Florida destinations, like Fort Lauderdale and Fort Myers - where the average income is between $57,000 and $67,000 - home prices are averaging between $378,000 and $411,000
'You just get a bigger bang for your buck [in Alabama],' Fox and Turkula's real estate agentLawanna Sharples told WSJ. 'It’s more affordable.'
Baldwin County has been rapidly growing between 2010 and 2020, having three percent growth, according to the Census Bureau. Broward County - where Fort Lauderdale resides - has only grown around one percent.
In addition, Alabama offers lower prices, allowing retirees to enjoy a more luxurious life than penny-pinching in Florida.
'A lot of services are priced for that income,'Florida Atlantic University Professor,Ken H. Johnson, told WSJ.'Baldwin County is right on the water, and the beaches look like sugar. It’s tailor-made to catch these retirees.'
'You get more value for your money in Alabama,'Bob Oliver, 71, of Roswell, Georgia, told WSJ. He and his wifeSherryl bought a three-bedroom property in Orange Beach in October 2022 for $929,000. 'It’s a less known area than the Florida Panhandle. It still has growth potential.'
Basic living expenses are also cheaper than in other states, according to the Bureau of Economic Analysis. The overall cost of living index in Baldwin County is equivalent to 94.5 - compared to a US average of 100, making it more affordable.
A typical individual in Alabama will need approximately $35,859 per year to cover basic costs and can expectto spend an average of $260.50 monthly on food and groceries, the stats show.
Many retirees have agree Baldwin County has more bang for its buck than Fort Launderdale or Fort Myers
Baldwin County also has lower property taxes, with homeowners over 65 exempt from paying the state portion, saving them up to 23 percent.
Fox and Turkula pay a mere $2,400 annually in property taxes. Their hurricane tax on the other hand is bordering four times the price at $8,100 annually.
Kathy and Ashley Gordon have lived in Baldwin County off-and-on for 15 years and even dipped their toes in Florida real estate. They retired to the Sunshine State in 2018, but three years later they moved back to Baldwin.
In November 2021, they purchased a cottage-style home in Alabama for$543,000 and sold their Florida home for$875,000.
'Just going out to dinner or groceries was triple the cost from what it is here,' Ashley said. 'Florida is very transient. You miss that sense of community.'
As a seasoned real estate expert with a deep understanding of the factors influencing retirees' choices, I can provide insights into the compelling trend of American retirees migrating to Alabama from Florida. This phenomenon is not merely anecdotal but reflects a broader pattern driven by economic considerations and lifestyle preferences.
The evidence presented in the article highlights the case of John Fox, a retired financial planner, and his wife, Dr. Louise Turkula, a retired plastic surgeon, who opted for Alabama over Florida due to financial constraints. The couple initially aspired to retire in popular Florida destinations like Jacksonville or Naples but found the cost of living and real estate prices in the Sunshine State beyond their financial reach.
The allure of Alabama, particularly Baldwin County, becomes evident as it offers similar warm weather and stunning beaches at a fraction of the cost compared to Florida. Fox and Turkula's decision to purchase a four-bedroom, 3,000-square-foot home on Ono Island in Baldwin County for $955,000 exemplifies the value proposition that attracts retirees to this region.
Baldwin County's status as the fastest-growing county in Alabama from 2010 to 2020, with a three percent growth rate according to the Census Bureau, underscores its increasing popularity among older Americans seeking affordable alternatives to Florida. The article cites the median home price in Baldwin County as $355,000, significantly lower than the average home prices in popular Florida destinations such as Fort Lauderdale and Fort Myers, where prices range between $378,000 and $411,000.
The lower cost of living in Baldwin County is a key factor contributing to its appeal for retirees. With an average income of $49,000 and a median home price of $355,000, the county provides a more affordable lifestyle compared to Florida. Real estate agents emphasize that retirees can get "a bigger bang for your buck" in Alabama, echoing sentiments from individuals like Bob Oliver, who purchased a property in Orange Beach for $929,000, citing the area's growth potential.
Moreover, the Bureau of Economic Analysis supports the claim that basic living expenses are cheaper in Alabama than in other states. Baldwin County's overall cost of living index is 94.5, below the U.S. average of 100, making it more financially feasible for retirees. Basic living costs in Alabama are estimated at approximately $35,859 per year, with monthly expenses of $260.50 for food and groceries.
Another noteworthy advantage is Alabama's lower property taxes, especially for homeowners over 65 who are exempt from paying the state portion. This exemption can result in significant savings, up to 23 percent. Fox and Turkula, for instance, pay only $2,400 annually in property taxes, a fraction of what they might pay in Florida.
The article also touches on the experiential aspect, as retirees like Kathy and Ashley Gordon highlight the sense of community and lower overall expenses in Alabama compared to Florida. The Gordons, having experienced both states, returned to Baldwin County after finding Florida's cost of living substantially higher, affecting even everyday activities like dining and grocery shopping.
In conclusion, the growing trend of American retirees choosing Alabama over Florida is substantiated by a combination of economic factors, including lower home prices, reduced living expenses, and advantageous tax policies. This migration is not only about financial considerations but also about finding a vibrant community and a desirable quality of life, making Alabama an increasingly popular destination for retirees seeking a more affordable and fulfilling retirement.
