Yahoo Finance 9 Places Retirees Should Avoid Where Rent Is Rising the Fastest in 2024
Getting to retire is the end of one financial journey and the start of a whole new one. While you might find yourself out of the working world and collecting Social Security instead of a paycheck, there are a slew of expenses and cost of living fees that still need to be paid for, including rent.
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Lots of retirees around the United States are facing the same issue: Rent is too darn high, and it keeps going up in certain places. Where exactly? Well, unfortunately, nearly everywhere across the country.
The good news is that GOBankingRates found nine places where retirees should avoid moving, because rent is rising fast and expected to go up all through 2024. Cross these places off your “Move To” list.
Miami
“This sun-soaked city has seen a staggering 24% YOY increase in rent, making it the nation’s fastest-growing rental market,” said Abid Salahi, the co-founder of FinlyWealth.
“[An] influx of remote workers and financial firms relocating from New York has spiked housing demand,” said Alec Kellzi, CPA at IRS Extension Online, pointing out how limited land and luxury developments are elevating rents.
“This astronomical rise is largely due to an influx of high-income earners and investors, pricing out many long-term residents and retirees on fixed incomes,” Salahi added.
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New York
The Big Apple has always been synonymous with high living costs, but rental prices have reached new heights, according to Salahi.
“New York City’s dense population and limited space have always contributed to its high living costs,” agreed David Perkins, the founder of Assured Claim Service. “As a cultural and financial hub, NYC attracts people from all over the world. Post-pandemic, the city has seen a resurgence in demand, driving rent prices upward once again.”
Perkins said the “city’s vibrant lifestyle, extensive amenities and employment opportunities make it attractive, but the high cost of rent can be a significant burden for retirees on fixed incomes. It’s important for retirees to consider the financial implications before deciding to move to New York City.”
“With a 22.5% YOY increase, even rent-controlled apartments are seeing significant hikes, putting a strain on retirees’ finances,” remarked Salahi.
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San Francisco
San Francisco’s reputation as a hub for tech companies has driven up housing prices and rents, as reported by Itay Simchi, a real estate investor and the co-founder of Proven House Buyers.
“The median rent in San Francisco has increased by 8% over the past year, with average prices reaching $4,500 per month,” Simchi said. “Retirees may need to look outside of the city center or consider alternative cities in the Bay Area.”
“The city’s strong tech industry, with giants like Google, Apple and Facebook headquartered nearby, drives high demand for housing,” echoed Perkins, adding that the limited housing supply further exacerbates the situation, pushing rents to astronomical levels.
“Additionally, San Francisco’s desirable climate, cultural attractions and diverse neighborhoods make it a magnet for professionals and families, contributing to its high cost of living,” Perkins said. “Retirees should be cautious about moving to San Francisco, as the financial strain could quickly erode their retirement savings.”
Orlando, Florida
Salahi said that the theme park capital of the world is “… experiencing a rental crisis, with a 21% YOY increase.”
“This is partly due to the post-pandemic tourism rebound and a surge in demand for short-term rentals, displacing many long-term residents,” Salahi explained.
Denver
Perkins highlighted how the increased demand for housing has pushed rent prices higher in Denver.
“Retirees looking to enjoy Denver’s scenic views and recreational activities should be mindful of the rising cost of living and its impact on their retirement funds,” Perkins said.
“Denver’s booming tech industry and proximity to the Rocky Mountains have driven up housing prices and rents,” said Simchi, observing that the median rent in Denver has increased by 15% over the past year, with average prices reaching $1,800 per month.
“As a result, retirees may find themselves priced out of the market or forced to settle for smaller, less desirable living spaces,” Simichi remarked.
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Austin, Texas
“Austin has transformed into a tech hub with companies like Apple, Google and Tesla setting up significant operations in the area,” Perkins said. “This tech boom, combined with the city’s vibrant music scene and cultural attractions, has led to rapid population growth.”
Unfortunately, Perkins added, “… housing development hasn’t kept pace, resulting in skyrocketing rents. While Austin’s lively atmosphere and job opportunities are appealing, retirees should be aware that the rising cost of living could impact their financial security.”
Tampa, Florida
Another Florida city feeling the burn, Tampa’s rental market has seen a 20.5% YOY increase in Salahi’s professional experience.
“This is driven by a combination of factors, including population growth, limited housing inventory and increased demand from remote workers,” Salahi noted.
Phoenix
“The Valley of the Sun is scorching hot in more ways than one, with a 19.5% YOY increase in rent,” said Salahi.
Despite the heat, Phoenix remains a popular retirement destination. However, Kellzi highlighted that the “… rapid population growth and limited housing supply are causing rents to surge.”
“The combination of a booming tech industry, a growing population and limited housing supply has created a perfect storm for skyrocketing rental prices,” added Salahi.
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Nashville, Tennessee
Nashville, known for its rich music history and thriving job market, has experienced substantial growth in recent years, according to Perkins.
“The city’s cultural attractions and strong economy attract many newcomers, but the housing supply has struggled to keep up,” said Perkins. And as a result, rent prices have surged.
“Retirees considering Nashville should take into account the high cost of rent and explore more affordable alternatives to ensure a comfortable and financially stable retirement,” Perkins added.
What Do All These Places Have in Common?
These areas share common factors, according to Kellzi: “Strong job markets, lifestyle appeal and housing supply constraints driving rent increases. These rapidly appreciating markets pose significant risks for retirees.
“Fixed incomes can quickly become stretched in such dynamic environments. The influx of younger residents can also alter the character of these cities, potentially making them less retirement-friendly over time.”
Salahi concluded, “Retirees must be extremely discerning when choosing their retirement destination, as the wrong choice could have devastating financial consequences. It’s crucial to research rental trends, consider alternative locations and factor in the potential impact on their retirement budget.”
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This article originally appeared on GOBankingRates.com: 9 Places Retirees Should Avoid Where Rent Is Rising the Fastest in 2024
