Posted on 02/26/2008 7:21:42 PM PST by fkabuckeyesrule
FOLLOWING THE FLOCK of other retirees to warmer climes may seem like the best way to spend one's golden years. But it may not be the smartest — especially during economic downturns.
"A retiree always needs to be careful about where he or she chooses to spend retirement, but with economic conditions changing so quickly it's even more important to make a good choice," says Warren R. Bland, author of "Retire in Style: 60 Outstanding Places Across the USA and Canada." Not all places are created equal when it comes to weathering economic woes like the current real estate slump, credit crunch and slowing job market, he says. Choosing the wrong place could carry serious ramifications.
"If you don't have a healthy local economy, it's like a cancer," says Bert Sperling, founder of Sperling's Best Places, which publishes reports on the best places to live based on data analysis. "There's less money for social services, for police patrols, even for infrastructure like fixing potholes." The widening subprime mortgage crisis makes ending up in the wrong part of town all too easy as well. "You could find yourself living in a deserted neighborhood," he warns, "where everyone else has fled" — or been forced out.
After all those decades of stashing money away for retirement, retirees should look for a place that will not only make them happy, but also keep their nest egg intact. Areas with a track record of slow, steady economic growth and home price appreciation are ones that will hold onto their value best, notes Walter Molony, a spokesman for the National Association of Realtors. These same places are also more likely to rebound quickly when nationwide economic conditions improve.
Here are seven recession-proof places our experts believe soon-to-be retirees should consider:
1. Gainesville, Fla.
The University of Florida keeps Gainesville's economy thriving and that's enough to turn most retirees into die-hard Gators fans. "Because colleges are relatively immune from recession, they provide a very stable local economy," says Sperling. The local AARP Senior Community Employment Program also ensures paid work is available to retirees, helping them compete against students for part-time jobs in the local retail and health-care industries, as well as at the university itself.
Last year, Gainesville ranked as the No. 1 place to live in the "2007 Cities Ranked and Rated," put out by Sperling's Best Places. "In a relatively small package, you get all the amenities you'd get in a much larger city," says Bland. The University of Florida Health Science Center provides excellent medical care, and residents can audit courses or attend any of the university's guest lectures, performances and exhibits.
The cost of living is on par with the national average, and the state's lack of income tax helps bolster retirees' savings. Local real estate has also remained steady. The average sale price for existing homes was $211,100 in 2007, down just 1% from 2006. Buyers get plenty for their money. "For prices that would be unbelievably low anywhere else, you'll find fairly large, contemporary houses on huge, half-acre or bigger properties," says Bland.
2. Ithaca, N.Y.
Ithaca not only boasts a breathtaking landscape of hills, gorges and waterfalls, but — as home to Cornell University and Ithaca College — it's also a smart place to retire. While education is the city's primary industry, there's a fair share of manufacturing and high-tech jobs as well. Unemployment stands at just 3.1%, nearly 2% below the national average.
Like the best college towns, there's little that progressive Ithaca lacks. The local music and arts scene is bustling, aided by a downtown pedestrian mall stocked with bookstores and an independent cinema, among other mom-and-pop retailers.
Ithaca is also one of the most affordable places to live in the United States. Almost three-quarters of the city's homes are priced at values that residents earning the median income of $64,500 can afford, according to the National Association of Home Builders' Housing Opportunity Index. The median home sale price in 2007 was $149,000.
3. Orlando, Fla.
For retirees, Florida's biggest perk isn't the warm weather but the lack of income tax. "Taxation, or the potential for taxation, can be a big chunk of your monthly budget when you're living on a fixed income," says Alfred Peguero, a partner with PricewaterhouseCoopers' Private Company Services, which advises clients on retirement issues.
Compared with other major cities in this retiree-friendly state, Orlando has a slightly lower cost of living and much steadier home values. The average sale price for existing homes in Orlando was down 3% last year, to $261,300. Meanwhile, homes in Sarasota dropped 7% to $310,900, and those in Fort Myers dropped 6%, to $252,100.
While Orlando's theme parks and convention centers aren't immune to hard economic times, other industries, such as engineering and electronic gaming, are booming. Orlando has also earned the nickname "Hollywood East" for its growing number of film and television companies.
Seniors won't have to go far to find quality health care. One of the city's biggest nonprofit hospitals, Florida Hospital, repeatedly ranks as one of the best in the nation, according to U.S. News and World Report. Its neurology department treats more stroke patients than any other hospital in the state.
4. Pittsburgh, Pa.
"Pittsburgh has this reputation for being a smoky, industrial city — but that's just not the case anymore," says Bland. Steel and chemical manufacturing have largely given over to the burgeoning high-tech industry, particularly robotics and biomedicine. The city also hosts seven Fortune 500 companies, including PNC Financial Services Group, Mellon Financial Corp., and electric distributor Wesco International.
In his "Places Rated Almanac," author David Savageau named Pittsburgh "America's Most Livable City" in 2007, citing its cultural amenities and vibrant downtown. The cost of living here is 5% lower than the national average. And while the median sales price of existing homes nationwide fell 1.4% last year to $218,900, Pittsburgh's increased by 1% to $120,700, according to the National Association of Realtors. Seniors can save on taxes as well. The average state and local tax is 8.9%, vs. 9.7% nationwide.
Other bonuses: a low crime rate (compared with other cities its size) and more than 20 quality hospitals. U.S. News and World Report named the University of Pittsburgh Medical Center among its "Best of the Best," in 2007, and awarded its geriatric division a No. 8 spot.
5. Portland, Ore.
"Hip. Unaffected, yet cosmopolitan. Portland is on everyone's short list of hot cities these days," says Sperling. Careful land-use planning rescued the city from economic decline in the 1960s, and today Portland is known for its burgeoning arts and music scene and eco-friendly vibe.
Compared to other West Coast metropolitan areas, Portland is affordable but by no means cheap. The cost of living here is 14% above the national average. And the credit crunch has put many residential areas out of reach for retirees with less-than-stellar finances, cautions Molony. While the National Association of Realtors reports that the average sales price for an existing home was up 5% to $295,200 in 2007, properties in popular areas like Irvington and Alameda Ridge can sell for well over $600,000.
Those who can afford to buy here, however, will find the city packed with retiree-friendly amenities, including public transportation and 30 senior centers. There are also plenty of jobs — both paid and volunteer. Nike and Intel call Portland home, as do plenty of other technology and health-care companies.
6. San Antonio, Texas
Stroll along San Antonio's River Walk and it's clear the city's economy is booming. The walkways feed into an expansive downtown district of restaurants, museums and boutiques adored by tourists and locals alike. While the city relies heavily on tourism to the Alamo and other area attractions, industries such as financial services, health care and national defense have kept the unemployment rate fairly steady at 4%, one percentage point lower than the current national average.
San Antonio's cost of living, at 7% below the national average, makes it one of the more affordable retirement destinations. Groceries, for example, are an incredible 22% cheaper than other metropolitan areas, notes Bland. "For a city with more than 2.5 million people living in the metropolitan area, that's really unusual."
Continued development has kept housing prices in San Antonio 10% lower than the national average. The average sale price for an existing home was $153,200 in 2007, according to the National Association of Realtors. Yet, despite the nationwide housing slump, home values here have increased 8% since 2006. Retirees will find the lower taxes an added relief, adds Peguero. Like Florida, Texas doesn't tax income. The average state and local tax burden is 7.8%, almost two percentage points lower than the national average.
7. Tucson, Ariz.
A warm, sunny climate and rich cultural heritage have long kept Tucson at the top of retirees' list of winter vacation destinations. However, with a cost of living that's 3% below the national average, a strong job market and steady home prices, there's plenty to enjoy about this city all year-round.
"Tucson is a dynamic, growing retirement spot, so there are plenty of job opportunities — although the pay is often low," says Bland. While it's not quite a college town, Tucson relies heavily on the University of Arizona as its second-largest employer. Technology and tourism (mostly from snowbirds) also provide plenty of jobs.
Steady expansion and new developments have kept housing relatively affordable, with costs at about 20% below the national average. The average sale price for existing homes dropped just 0.01% in 2007, to $244,800. Expect real estate prices to remain solid, thanks to increasing interest in the area as a retirement destination. The most popular areas are planned communities (retirement-specific and otherwise) northwest of the city, including Oro Valley and other towns in the foothills of the Santa Catalina Mountains.
Wouldn't you be right in the middle of a major migration bottleneck or even battlezone (someone might try to destroy, or take control of the CZ)?
I’m hoping that RE values will drop around Aiken over the next year so I can take advantage of even lower prices for 10-20 acres.
30 plus years ago, Australia was PAYING Americans to MOVE there!! I knew a guy who did that.
Cary is NORTH Carolina...I think AIken is SOUTH Carolina......Cary is great...used to live there in Lochmere.
Cary is NORTH Carolina...I think AIken is SOUTH Carolina......Cary is great...used to live there in Lochmere.
Can you be more specific re: Sussex County? Aren’t some of these towns expensive places that fill up with tourists in the summer?
Would like to hear your opinion of the nicest towns there for retirement purposes.
ROFL!
You couldn't pay me enough to actually live in Manila.
Now let's talk about Palawan or Zambales.
Permanent residents are covered - but illegals get deported.
You misunderstand my question.
If I emigrate as a retiree with residence visa (or whatever they call it) but keep US citizenship, does their welfare/health system consider me a resident entitled to services or just a “long-term visitor” with no services ?
IOW if I have resources and can pay my own way, they don’t want me as a retiree ?
The New Zealand Immigration site is really good and has all of the answers.
That works for me!
Beyond the outfield... into the tall cornfield... yes. Must find out what's out there... maybe I'll ask Doc ;-)
We don’t hit that high. Our highest ever was 117, and that was almost 18 years ago. Most summers it’s 101 to 105, maybe in August we’ll spike up towards 110 but very rarely past it. And really that’s why God gave us AC, I don’t care how hot it is outside 5 minutes in a well ACed room and you’re cooled off, heat doesn’t sink into your bones like cold, and you never have to shovel it out of your driveway. We’re tagging the 80s this week.
Oh goody, none of them are places we were planning to go anyway. This way, everyone else will go there, and where we are won’t be so crowded! ;o)
I was using my brother in-law's reports on temperatures in his area of Arizona between Kingman and Havasu....
BTW, I live in the central valley of California, we get our fair share of heat too. I don't care where you are, when it gets over 100 it's not "a warm sunny climate" it's frigg'n hot.
Check out Ft. Morgan AL, just West of Gulf Shores. Just gorgeous!
The MS Gulf Coast is nice, too. They're slowly rebuilding from Katrina, but there have been some beautiful condos built along the Coast Highway, looking right out over the MS Sound. There are lots available in Pass Christian and Waveland, if you don't mind building your house up off the ground, otherwise the insurance costs will eat you alive.
Our #1 son went to Cornell Law School, so we went up to Ithaca a couple of times. It IS a gorgeous area, but the town itself does have that hippie feel. Go out of the city and you’re in beautiful country! I wouldn’t want to live there because it’s too dang cold. I can’t wait to get out of MA; 20 years of cold and snow (actually 27, if you count the time we spent in NJ, before moving to MA) is enough for me!
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