Yahoo Finance 8 Retirement Hot Spots Where the Cost of Living Is Skyrocketing Post-Pandemic
Since the COVID-19 pandemic, the cost of living has risen in quite a few locations throughout America. This has forced many people to have to relocate, and others who’d initially planned to move to those places upon retirement to think twice about their options.
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Even though things have settled a lot since the start of the pandemic, many of these places have remained expensive or even unaffordable for the average retiree. If you’re thinking about where to retire, here are eight popular spots where the cost of living has skyrocketed.
Miami
Florida has always been a popular retirement destination, but certain cities have really gone up in price.
“Miami is one such hot spot where living costs have surged, especially in housing,” said Tim White, founder of MilePro. “The median home price in Miami has risen by 25.8% from 2020 to 2022, making it challenging for retirees to afford homes there.”
According to Zillow, the average home price in Miami is $575,859, up 8.8% over the past 12 months alone.
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Asheville, North Carolina
North Carolina falls somewhere in the middle when it comes to its overall cost of living. Everything but healthcare is slightly cheaper than the national average, according to the Missouri Economic Research and Information Center. The state is also slightly cheaper than Florida.
But some areas within the state, such as Asheville and Raleigh, have skyrocketed in price.
“Asheville, North Carolina, has experienced a 10% increase in grocery prices due to higher demand and limited supply,” said White. “These significant increases in basic living expenses have transformed [this] once-affordable retirement haven into a more expensive locale.”
The average home in Asheville costs $475,699, a 5.4% increase over the past year. Homes in Raleigh are also on the rise with the typical home value priced at $444,456.
Austin, Texas
Texas is another of those states where everything — excepting utilities — is a little cheaper than the national average. But cities that were just starting to be popular before the pandemic, like Austin, have become increasingly crowded and much more expensive as a result.
“As a couple, my partner and I have always kept retirement planning in mind during our travels, consistently checking out the best retirement hotspots,” said Pierce Hogan, owner of Varied Lands, a travel resource publication.
“Before the pandemic, we found Austin to be a promising retirement destination due to its vibrant culture and affordable cost of living,” Hogan continued. “However, since the pandemic, the median home price in Austin has skyrocketed by 38.9% from 2020 to 2022, making it far less affordable for retirees.”
Zillow reported that the average home value in Austin is $551,906 right now. This is actually a slight decrease over the past year, but it’s still higher than the national average by a wide margin.
Sarasota, Florida
Homes in Sarasota currently cost an average of $464,097, a 1.3% increase over the past year. But it’s not just housing that’s going up in price. Other things, like healthcare, are also on the rise.
“Sarasota used to be an excellent choice for its beautiful beaches and active lifestyle,” said Hogan. “Unfortunately, post-pandemic, Sarasota has seen healthcare costs rise by approximately 9%.”
Healthcare costs have risen throughout the country, but when the cost of housing and other everyday goods are also higher than ever, the combined effect makes for a much less affordable retirement destination.
Carlsbad, California
The cost of housing is a prime indicator of rising costs in an area, which is why Carlsbad also makes this list. According to Zillow, the average home value in the city is $1,558,692, a 13.1% increase over the past year alone.
“In Carlsbad, CA, part of the San Diego Metro area, housing expenses have witnessed an approximate 25% increase since the onset of the pandemic,” said Michael Kootchick, a real estate developer in San Diego with a leadership role at OneStop ADU. “This surge is attributed to Carlsbad’s coastal appeal and the influx of buyers seeking properties with space and amenities conducive to a comfortable retirement.”
Both home purchases and rentals have gone up in the area. Not to mention, California as a whole is ranked the fourth most expensive place to live in the United States, after Massachusetts, the District of Columbia, and Hawaii.
Prescott, Arizona
Prescott used to be a highly popular destination for retirees, and it still is in many ways. But rising costs since the pandemic have made it a little less feasible for retirees on a fixed budget.
“Since the pandemic, Prescott has seen a roughly 20% increase in housing prices,” said Kootchick. He also added that the individuals he works with, which includes potential investors and retirees, have shown increased concerns about finding affordable housing in the area.
Palm Springs, California
Given its high-end amenities and facilities, it’s no surprise that Palm Springs is another popular retirement destination. But it’s not as affordable as it once was.
The typical home in Palm Springs costs $667,509, a slight increase over the past year. Housing costs have also increased by about 40%, according to Marty Burbank, an expert in estate planning and elder law with OC Elder Law.
Rising costs have made “it tougher for retirees to either downsize or relocate there without substantial financial planning,” he said.
St. Petersburg, Florida
Florida is very tax-friendly when it comes to retirees. After all, there’s no state income tax, estate tax, Social Security tax, or taxes on other standard retirement income sources.
But St. Petersburg — like many other retirement hot spots — continues to become more expensive. According to Kootchick, housing prices alone have risen by around 30% since the pandemic. Other facets of life, like healthcare and everyday essential services, have also gone up lot due to increased demand and overall escalating costs.
That said, the average home value is just $384,513. This is lower than the national average, but it’s still a 5.3% increase over the past year.
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