Tuesday, July 29, 2014

15 Retirement Hot Spots for Real Estate Investing ranked by RealtyTrac

RealtyTrac Ranks Top 15 Retirement Hot Spots for Real Estate Investing

Posted Jul 4, 2013 via Marketwired - RealtyTrac, the leading online marketplace for real estate data, today released a special report on real estate investing in cities that are retirement hot spots -- where at least one-third of the population is age 65 or older.
Top Cities in Florida, Arkansas, Pennsylvania, Arizona, California, Oregon, New York; 25 of 40 Retirement Hot Spots Post Increasing Prices, 27 With Positive Cap Rates
"These popular retirement cities will very likely be an area of growth in the housing market over the next 15 years as baby boomers retire in greater numbers," said Daren Blomquist, vice president at RealtyTrac. "The baby boomer generation started retiring in 2011, a trend that will continue at least through 2029, ensuring plenty of demand for both rentals and owner-occupant purchases in these markets for the foreseeable future."
The report found 40 cities nationwide with at least 33 percent of the population age 65 or older. Among these 40 cities, 25 posted annual increases in median home prices, and 27 had a positive capitalization rate -- which indicates rentals in those markets generate positive cash flow. RealtyTrac also included relevant data on cost of living, average temperature and annual chance of sunshine in each of these markets.
RealtyTrac ranked the top 15 of the 40 retirement hot spot cities based on the annual percent change in home prices as of May. Topping the list was the central Florida town of Dunnellon, where 38 percent of the population is retirement age or older and home prices jumped more than 31 percent in the past year. The estimated cap rate in Dunnellon is more than 10 percent based on the average rent for a three-bedroom home there.
Six other Florida cities made the top 15 list: Naples, North Fort Myers, Punta Gorda, Sun City Center, Venice, and Orange City. Arizona and California each contributed two cities to the list, and Arkansas, Pennsylvania, Oregon and New York each had one city in the top 15.
"The Hamptons will continue to grow into a retirement hot spot on Long Island, offering an attractive environment for seniors," said Emmett Laffey, CEO at Laffey Fine Homes International, which covers Long Island and the five New York boroughs. "Developers' appetite to construct housing aimed towards retirement-aged adults is growing again. They are well aware that this buyer pool will only increase over the next 15 years."
Top 15 Retirement Hot Spots for Real Estate Investing
CityRetirement
Age Pct
Cost of
Living
Index
Average
 Temp
Annual
Chance
of
Sunshine
Median
Sales
Price
May 2013
Annual
Pct
Change
in
Price
Cap
Rate
Dunnellon, Florida38%102.0570.3066.85$76,94131.42%10.34%
Naples, Florida44%159.5674.1072.88$267,47326.79%3.84%
HotSprings Village, Arkansas58%104.5961.8059.84$170,00025.93%4.87%
Douglassville, Pennsylvania59%107.0351.1055.89$252,00022.33%3.80%
Sun City, Arizona73%116.8173.2080.87$113,27519.90%8.86%
North Fort Myers, Florida44%106.3974.9072.88$84,50019.01%9.39%
Rancho Mirage, California46%152.1473.9072.05$430,00016.77%2.70%
Punta Gorda, Florida45%119.8073.9072.88$138,93816.71%6.11%
Sun City Center, Florida76%105.8371.9066.85$99,75014.66%8.73%
Venice, Florida52%115.5173.2072.88$148,23811.46%6.52%
Florence, Oregon38%98.7151.9042.90$165,00010.37%4.89%
Green Valley, Arizona72%108.3764.2077.81$144,55010.13%6.48%
Seal Beach, California39%149.0065.3076.16$692,0009.84%2.57%
Orange City, Florida34%106.3870.1062.74$68,0008.80%12.92%
East Hampton, New York43%184.3051.9057.65$952,5008.18%2.09%