I’m a Retirement Planning Expert: These 3 Affordable Cities Have the Best Quality of Life
With both housing costs and overall prices still high, many places where retirees can afford to live aren’t necessarily places where they would want to live — but there are still some gems for the taking.
As a former Wells Fargo financial advisor, private real estate trust managing trustee and a financial lawyer overseeing the LLC Attorney firm, few people know more about the intersection of real estate and retirement planning better than Jonathan Feniak.
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“As general counsel and head of finance with a strong background in both estate planning and real estate, I’ve advised numerous clients planning for their retirement journey,” said Feniak.
Here are three cities he’s recommended to many of his clients heading into retirement for their high quality of life and relatively low living costs.
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Asheville, North Carolina
Feniak’s first recommendation is an oasis of art, music and culture in the Great Smoky Mountains near the Tennessee border in western North Carolina
“Asheville provides a rich cultural scene, mild climates, and quality healthcare facilities amidst picturesque mountains, all at a reasonable cost of living, especially when considering the amenities offered,” said Feniak.
The cost of living in Asheville is 13% higher than the national average, but groceries and transportation are both cheaper, while goods and services are precisely on par. Housing is the reason that Asheville costs more than average.
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Housing there costs 45% more than average and Zillow reports the average home value as $462,515, much more than the already painful national average of $347,7165.
But who says retirees have to buy?
The city’s prohibitively high housing costs don’t apply to the rental market. The average rent there is just $1,468 per month — 2% less than the $1,498 national average — which gives retirees who rent the chance to enjoy all the city has to offer without the crushing housing costs that put the otherwise affordable retirement destination out of reach.
St. Petersburg, Florida
Florida has beckoned generations of retirees, but many traditional hotspots are now saturated, overdeveloped and overpriced. Feniak recommends looking at a gem on the Gulf Coast in the state’s west-central Tampa Bay region.
“St. Petersburg is an attractive option with its vibrant social scene, warm climate and no state income tax,” said Feniak. “The healthcare services are commendable and real estate remains relatively affordable.”
But “relatively” is a subjective term. The average home in St. Petersburg costs around $375,000 — higher than the national average but lower than the Sunshine State average of $392,306. Like Asheville, renters might get the longer end of the housing stick.
The average rents are:
Studio: $1,387
1-bedroom: $1,784
2-bedroom: $2,173
There are certainly cheaper rentals to be found in America, but prices in St. Pete are moving in the right direction. The average three-bedroom dropped by 18% over the last year, the average two-bedroom dropped by 22% and studio prices fell by 34%.
If the downward trend continues, average retirees who rent can afford housing in St. Pete, which has otherwise reasonable living costs. Goods and services, health care and utilities are all cheaper than average and groceries are on par with the national average.
Omaha, Nebraska
For retirees who play their cards right — and renters — St. Petersburg and Asheville are affordable places to live, especially considering the exceptional quality of life. But for low costs and high quality, it’s almost impossible for the Southeast to compete with the Midwest.
“Lastly, consider Omaha, Nebraska, a bastion of hospitality and low crime rates, offering attractive housing prices and a cost of living below the national average,” said Feniak.
Omaha has an exceptional livability score of 83, with housing, health and safety, commute, amenities and cost of living all receiving A+ ratings. And it’s not a get-what-you-pay-for city.
Omaha’s cost of living is 4% lower than the national average, with goods and services, health care, transportation, utilities, housing and groceries all being cheaper.
The average home costs just $272,286, giving many average retirees an excellent buying opportunity. For retirees who choose to sign a lease instead of a home loan, the average rent for a one-bedroom apartment in Omaha is $1,007 — 33% less than the national average.
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