Retirement Properties

What is a Retirement Property?

A retirement property is any place you relocate to for the enjoyment of your retirement years. Houses, condos, and apartments located within senior communities with age restrictions fall into this category, as do homes outside of the confines of a designated community; these are often homes within a short distance of major hospitals, shopping centers, and entertainment facilities. Some retirement communities are all-inclusive and provide meals, daily activities, medical assistance, transportation, and luxury amenities, while other retirement properties are located near golf courses and private beaches that charge use fees.

How Much Do Retirement Properties Cost?

The costs of retirement properties vary significantly depending on several factors, including location, size, home features, and community amenities. When selecting a retirement property, ask to see all current fees for the community, as well as fees from the last five years. This allows you to evaluate not only the current costs, but also how costs may increase in the years to come. If you are relocating to a new state, consider the property and estate taxes. Budget for homeowners association dues, insurance, and maintenance.

Across the United States, monthly fees for homes in independent living communities range from around $1,500 to $10,000. According to U.S. Census Bureau data, older adults owning homes outside of designated retirement communities pay an average mortgage of $2,913 in New York City, $3,993 in San Francisco, $2,787 in Honolulu, $2,246 in Austin, $2,230 in Miami, and $1,580 in Phoenix.1

Buying a Retirement Property

Buying a retirement property is enticing to many older adults because homeownership is an investment that affords more independence and control over the property. You will be able to make desired modifications to the inside and may or may not be able to alter the outside, as many communities have rules limiting decorating, painting, and landscaping.

As buying a retirement property is a big investment, one of the most important considerations is the home's features and the maintenance required for upkeep. Consider how your needs will change as you age. Although you may be spry now, a single-story residence with walk-in bathtubs, wide hallways and bathrooms, and a small yard may become necessary as your eyesight, mobility, and stamina decline with age.

Renting a Retirement Property

For seniors used to owning their home, renting a retirement property can be an adjustment, but it also has advantages. Renting gives you a chance to try a new area before fully committing, which is important if you are moving away from friends and family whom you might miss more than you expected. On the flip side, it is also an advantage if you are moving to be near family; if your children move, renting allows you to more easily move again to be near them. Renting frees you from the responsibility of home maintenance and repairs, but it also makes you subject to the rules of the property owner.

Types of Retirement Properties

Waterfront and Coastal Retirement Properties

For seniors who love walks along the ocean or boating on the lake, waterfront and coastal retirement properties are great choices. These properties may include access to private sections of the beaches reserved only for residents; this creates a cleaner, quieter, more serene experience, as beaches are not crowded with loud tourists and children. Generally, waterfront properties are worth twice as much as landlocked homes; however, insurance costs are higher and insurance for floods, windstorms, and earthquakes may be necessary. For cost and features, CNBC suggests cities like San Diego, California; Portland, Maine; Sarasota and Fort Myers, Florida; Charleston, South Carolina; and Boston, Massachusetts.2

Properties in Golf Communities

Selecting a retirement property in a golf community is about more than well-maintained courses. Consider the amenities off the green, including the clubhouse and nearby access to shopping, entertainment, and medical facilities. When looking at costs, consider what is and isn't included, such as cart rentals, meals at the club, and course membership fees. Golf communities designated for senior living may have special tournaments, dances, and holiday events for residents, while also renting out facilities to nonresidents for occasions like proms and weddings.

Properties in Retirement Villages

Retirement villages help older adults remain in their homes while receiving affordable access to assistance services. A retirement village is simply a neighborhood of people who have pledged to help their senior neighbors with transportation, home maintenance, and simple tasks like taking out the garbage or just changing a light bulb. Group outings to movies and museums are common. Some helpers volunteer, while others are paid staff. Villages may be organized by the members themselves or run by a larger organization. Most retirement villages are located in major cities, with several in Boston, Washington, D.C., and San Francisco.

International Retirement Properties

International retirement properties give seniors a chance to explore new countries and often save on housing costs. While many parts of the world offer lower homeownership costs, other living expenses may be higher, such as gas and food.

Setting up a home in a new country can come with some unexpected delays, so it's important to plan far ahead. In some countries, for example, you may wait a month before your phone is set up, and your internet connection may be slower. When considering international options, make access to healthcare a top consideration. You cannot use Medicare overseas, and while some countries have excellent national health care systems, as a non-citizen, you may not be eligible for benefits.

How Do I Search for a Retirement Property?

Once you decide what kind of retirement property is right for you, there are many tools to help your search for a new home. If you’re interested in living abroad, check out International Living for overseas homes. Alternatively, if you know you want to stay in the United States, you can search our housing directory for all of your options.