IRVINE, Calif. – July 5, 2013 – RealtyTrac released a special report on real estate investing in cities that are retirement hot spots – ones where at least one-third of the population is age 65 or older.
“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,” says 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. In addition, 27 had a positive capitalization rate, which suggests that rentals in those markets generate positive cash flow. RealtyTrac ranked the top 15 of 40 retirement hot spot cities based on the annual percent change in home prices as of May.
Florida had almost half of the nation’s top 15 retirement hot spots, with seven in the list, and Dunellon ranked at No. 1 nationwide. In Dunellon, 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.
Florida cities in top 15
1. Dunellon: 38% of residents retirement age; $76,941 median sales price in May 2013
2. Naples: 44% retirement age; $267,473 median sales price
6. North Fort Myers: 44% retirement age; $84,500 median sales price
8. Punta Gorda: 45% retirement age; $138,938 median sales price
9. Sun City Center: 76% retirement age; $99,750 median sales price
10. Venice: 52% retirement age; $148,238 median sales price