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

City		Retirement 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, Florida		38%		102.05		70.30		66.85			$76,941			31.42%		10.34%
Naples, Florida		44%		159.56		74.10		72.88			$267,473			26.79%		3.84%
HotSprings Village, Arkansas		58%		104.59		61.80		59.84			$170,000			25.93%		4.87%
Douglassville, Pennsylvania		59%		107.03		51.10		55.89			$252,000			22.33%		3.80%
Sun City, Arizona		73%		116.81		73.20		80.87			$113,275			19.90%		8.86%
North Fort Myers, Florida		44%		106.39		74.90		72.88			$84,500			19.01%		9.39%
Rancho Mirage, California		46%		152.14		73.90		72.05			$430,000			16.77%		2.70%
Punta Gorda, Florida		45%		119.80		73.90		72.88			$138,938			16.71%		6.11%
Sun City Center, Florida		76%		105.83		71.90		66.85			$99,750			14.66%		8.73%
Venice, Florida		52%		115.51		73.20		72.88			$148,238			11.46%		6.52%
Florence, Oregon		38%		98.71		51.90		42.90			$165,000			10.37%		4.89%
Green Valley, Arizona		72%		108.37		64.20		77.81			$144,550			10.13%		6.48%
Seal Beach, California		39%		149.00		65.30		76.16			$692,000			9.84%		2.57%
Orange City, Florida		34%		106.38		70.10		62.74			$68,000			8.80%		12.92%
East Hampton, New York		43%		184.30		51.90		57.65			$952,500			8.18%		2.09%