Best Places for Bargain Retirement Homes

[TampaYankee]

Best Places for Bargain Retirement Homes

Baby boomers looking to settle down should check out these affordable locales.

By Zack O'Malley Greenburg, Forbes.com Feb 1, 2011

In the suburbs of New York and Los Angeles, a four-bedroom home with a pool, three-car garage and vaulted ceilings could easily set you back $2 million or more. But 20 minutes from downtown Oklahoma City, a 2,800- square-foot house with those amenities at 9201 S.W. 26th St. is listed for a mere $239,500.

That may seem like an unusually low price, but it's close to the norm in Oklahoma City, which tops our list of the best places to find bargain retirement homes.

"There's just about any kind of home you want around here," says Rick Jackson, the realtor selling the aforementioned home. "There's everything you want within the state, from mountains to casinos. For retirees, the city has a great reputation for health care facilities. It's a great place to live."

No. 1 Oklahoma City, Okla.

Oklahoma City ranks first on our list because of its low cost of living, stable home prices, low taxes and a very reasonable average home price of $78 per square foot. That's half the cost of square footage in Miami, one-tenth of what you'd pay in Boston and one-fifteenth the greater New York City area.

No. 2 Memphis, Tenn.

Memphis ranks second on the list, bolstered by square footage rates similar to Oklahoma City's, as well as the absence of state income taxes. Raleigh, N.C., is third, followed by Charlotte, N.C., both held back by higher tax rates than Tennessee's. Indianapolis, Ind., rounds out the top five. The list also includes two perennial Arizona retirement hotspots: Tucson (No. 7) and Phoenix (No. 9).

"It's not surprising that the Sunbelt areas made it onto the list," says Tara-Nicholle Nelson, consumer educator for real estate site Trulia.com. "They have been long-time favorites among retirees, which probably contributed to their being overbuilt earlier in the decade, as Boomers looked to relocate in new homes and new communities in those areas, and as investors looked to purchase homes that would be attractive winter rentals."

Behind the Numbers

To form our list, we used five sets of data compiled by Trulia.com from other sources. These include: median state property taxes, via Bankrate.com; highest state income tax bracket, via TaxAdmin.org; cost of living, via Kiplinger's; price per square foot, via Trulia; and the peak-to-trough median single-family home price change (calculated as the difference in the median price change from the second quarter of 2006 to the second quarter of 2009), via the National Association of Realtors. The 50 largest metro areas in the country were included in the study.

No. 3 Raleigh, N.C.

Although there are plenty of deals to be had in traditional retirement havens like southern Florida, retirees can get more bang for their buck in states like Oklahoma and North Carolina--welcome news for baby boomers whose nest eggs haven't yet recovered from the financial crisis.

"When home values were at their peak, many of today's retirees were counting on their ability to cash out some home equity as a major component of their retirement plan," explains Trulia.com's Nelson. "Now, many have taken hits to both their home values and their retirement portfolios. As a result, retirees are looking to move to less expensive markets and are being extremely deliberate and smart about their target towns."

No. 4 Charlotte, N.C.

Oklahoma City's median home price held up remarkably well during the national housing bust. In fact, it rose 2% over the housing market's rocky ride from peak to trough. That may be because the city's residents tend to stay put and approach the property market with a long-term perspective.

"We've had our dips over the last 100 years, but we usually dip right out," says realtor Jackson. "I can't think of another city where I'd rather live."

No. 5 Indianapolis, In.

See the original article and the full list of Best Places for Bargain Retirement Homes here:

http://realestate.yahoo.com/promo/best-places-for-bargain-retirement-homes.html

[Guest Conway]

The only place on that list that I can think that a gay man would want to live is Raleigh Durham.

[TotallyOz]

I lived in Memphis and I enjoyed it. I like the area and the things available there. But, it is not a great gay city. Other than that and the religious right, it is a fun place to live.

[Guest CharliePS]

I wonder if Forbes factored in the cost of tornado insurance in OK City. Or how many times one might have to rebuild that home at $78/sq ft. Or the cost of flying in escorts from somewhere else.

[RA1]

OZ-

I appreciate the comments about MEM. IF I had to make a "complete" life here I would think about living else where but it is home to me with BBQ, vegetables and all the other Southern attributes. But, I travel a LOT and experience other cities and places on a regular basis. The RE values are low AND consistent, not a thing to regard lightly in this day and time.

Charlie PS-

One has to become accustomed to violent weather, if not violent personalities, in this area but it is a matter of perspective which may or may not include "reality". In other words, if you can "tolerate" earthquakes, whatever their frequency, then you can tolerate tornados, etc. It is all what one becomes accustomed to being present. We actually don't have criminals on every street corner or drug addicts between buildings. Do you have any of those in PSP?

Best regards,

RA1

[Guest CharliePS]

OZ-

I appreciate the comments about MEM. IF I had to make a "complete" life here I would think about living else where but it is home to me with BBQ, vegetables and all the other Southern attributes. But, I travel a LOT and experience other cities and places on a regular basis. The RE values are low AND consistent, not a thing to regard lightly in this day and time.

Charlie PS-

One has to become accustomed to violent weather, if not violent personalities, in this area but it is a matter of perspective which may or may not include "reality". In other words, if you can "tolerate" earthquakes, whatever their frequency, then you can tolerate tornados, etc. It is all what one becomes accustomed to being present. We actually don't have criminals on every street corner or drug addicts between buildings. Do you have any of those in PSP?

Best regards,

RA1

Unless the news reports lie, tornadoes (note plural) slam through Oklahoma annually, causing terrible death and destruction. Earthquakes in southern California are technically frequent, but usually too small to be detectable; in the seven years I have been here, there has been only one earthquake (more than a hundred miles away) that caused any notable damage, to a small number of homes, and no deaths. I can tolerate that more easily than the probability of a tornado every spring. Of course, I buy earthquake insurance anyway, just in case. I don't believe there is anywhere in America that doesn't have criminals and drug addicts, though I encounter them less frequently here than in other places where I have lived (in New York, I used to have to step over them sleeping in the entrance of my apartment building--and I lived in a "good" neighborhood!).

[Guest FourAces]

I have spent some time in Raleigh - Durham and enjoyed the area. Its a short drive to Chapel Hill, a college town, with liberal views. There are many who have moved to Raleigh from the Northeast to work in the Research Triangle and they bring their left-minded attitudes with them. I think it could be a comfortable place to retire for a gay man.

btw: OKC has plenty of Casinos

[Guest zipperzone]

I don't think low prices should be the most important criteria. Climate & quality of life, to me, count for much more. I would like to find a small town 50 - 75 thousand would feel right. Large enough to have a good bookstore and a couple of restaurants above the diner level.

It doesn't have a predominance of gay but it must have one that is accepting of gays both single & couples. I find towns that have small colleges or universities usually fit the bill.

My search would probably be for a place like Eugene Oregon or Bellingham Washington.

[RA1]

Unless the news reports lie, tornadoes (note plural) slam through Oklahoma annually, causing terrible death and destruction. Earthquakes in southern California are technically frequent, but usually too small to be detectable; in the seven years I have been here, there has been only one earthquake (more than a hundred miles away) that caused any notable damage, to a small number of homes, and no deaths. I can tolerate that more easily than the probability of a tornado every spring. Of course, I buy earthquake insurance anyway, just in case. I don't believe there is anywhere in America that doesn't have criminals and drug addicts, though I encounter them less frequently here than in other places where I have lived (in New York, I used to have to step over them sleeping in the entrance of my apartment building--and I lived in a "good" neighborhood!).

Charlie-

In Memphis we generally do have more than one tornado alerts or warnings during the "season" but we have many more violent thunderstorms than tornados. I know from experience and from the reports of friends who live in CA that one becomes "accustomed" to the reality of small or larger earthquakes. However, msny of those folks have had at least minor damage to their dwellings from such without any real fear of being "hurt" physically. Tornadoes usually destroy whatever in a path and not much more. There are obvious similarities. One might suggest that everyone just take their choice, so to speak. I am used to the thunderstorms and the occasional tornado and am perfectly willing to abandon ship if one approaches too close but that seldom happens. I have been "on alert" personally a very few times but have never actually done anything beyond being alert.

Regional weather or climate information is there for anyone to view and decide for themselves what is "reasonable" to deal with. I am happy dealing with the local weather and I am sure you are happy dealing with your local situation. A toast to whatever.

Best regards,

RA1

[Guest CharliePS]

I don't think low prices should be the most important criteria. Climate & quality of life, to me, count for much more. I would like to find a small town 50 - 75 thousand would feel right. Large enough to have a good bookstore and a couple of restaurants above the diner level.

It doesn't have a predominance of gay but it must have one that is accepting of gays both single & couples. I find towns that have small colleges or universities usually fit the bill.

My search would probably be for a place like Eugene Oregon or Bellingham Washington.

I have friends in both Eugene and Bellingham, so when I was searching for a place to retire, I looked seriously at both towns. I liked most things about them, except the periods of seemingly endless clouds and drizzle. Us old guys really like sunshine. A friend of mine retired with her husband to Portland, OR, and after about four months of winter without sun, she said she was starting to feel suicidal, or homicidal.

[Guest epigonos]

I find the comments and concerns regarding earthquakes, coming from people who do not reside in California, interesting and hopelessly exaggerated. I was born and raised in California and have lived through all of the major Southern California earthquakes since the 1950’s. I was in Whittier at the time of the Whittier narrows earthquake. There have been at most six earthquakes in my life time that have caused any degree of damage, major or minor. Major damage is ALWAYS limited to the immediate area surrounding the epicenter. All of the major earthquake faults, in the State, are well mapped and people need to be aware of their location before buying in California. I have made a point of never living on a major fault and have thus never sustained even minor damage

[Guest CharliePS]

I find the comments and concerns regarding earthquakes, coming from people who do not reside in California, interesting and hopelessly exaggerated. I was born and raised in California and have lived through all of the major Southern California earthquakes since the 1950’s. I was in Whittier at the time of the Whittier narrows earthquake. There have been at most six earthquakes in my life time that have caused any degree of damage, major or minor. Major damage is ALWAYS limited to the immediate area surrounding the epicenter. All of the major earthquake faults, in the State, are well mapped and people need to be aware of their location before buying in California. I have made a point of never living on a major fault and have thus never sustained even minor damage

I liked the comment of the woman who was interviewed by a reporter, who asked whether she was nervous about living on the San Andreas Fault. "Oh, but we don't live on the fault. It's in the backyard."