Realtors Predict House Prices Will Plummet in These 8 Popular Retirement Towns

While the real estate market has been hot the past few years, there are some signs that it’s beginning to cool, which is good news if you're preparing for retirement and looking for more affordable living.

From the Midwest to the South, several markets have long been favorites of retirees for their charm, amenities, and access to healthcare. Now that prices are predicted to drop in some of these areas, it could be time to make a move.

We asked the people who know for their thoughts on where prices will plummet in retirement towns, and here’s what the real estate agents we spoke with had to say.

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1. Sioux Falls, South Dakota

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Amy Stockberger, broker and owner at Amy Stockberger Real Estate, reports that her market is attractive to retirees thanks to its affordability and lower cost of living, with a median home price at $358,000.

“With no state income tax, we offer a more economical lifestyle compared to many other states, along with access to top healthcare facilities, diverse attractions and Midwest charm,” says Stockberger.

She also notes that there are also four seasons, lots of outdoor recreation, and convenient public transportation.

2. Colorado Springs, Colorado

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“Colorado Springs is showing up on more top 10 retirement communities lists than ever before, but home prices have been flat for the past two years, with prices slowly dropping in the higher sales prices,” says Andrew Fortune, owner and REALTOR at Great Colorado Homes.

He notes that inventory is rising, which could also drive down prices from the current median home price of $469,000. Combine that with low property taxes and a desirable climate, and you have an ideal location for budget-conscious retirees hoping to have it all.

“The temperature is warmer than the mountain towns, so retirees like to live in Colorado Springs and vacation in the mountains all year around,” he continues. “Downtown Colorado Springs and Manitou Springs have good walkability and charming turn of the century homes that are great for retirees.”

3. Surprise, Arizona

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If you want proximity to the retirement hotspot of Phoenix, AZ, but you don’t want to pay the same prices, look at suburbs like Surprise, AZ where the median home price is $465,000.

“It's a subtle price adjustment that's going on right now for Surprise,” explains Kevin Shahnazari, founder and CEO of FinlyWealth.

“Recent interest rate hikes have chilled the demand, which has created an excellent time for buyers to step in. I got a property in Surprise for one of my clients for 8% below last year's market value.”

That’s not all this Arizon hot spot has going for it either, Shahnazari notes that the state doesn’t tax social security benefits and has a $2,500 deduction for other retirement income.

“Medical care is available, with Banner Health and Mayo Clinic having operations nearby,” he continues. “Add in the year-round sunshine and communities where one can often get around via a golf cart, and there's little left to want.”

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4. Georgetown, Texas

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Texas is a favorite of retirees thanks to its lack of state income tax. And the good news is prices may be dropping in some Lone Star State cities.

“Georgetown, known for its charming downtown and relaxed atmosphere, has long attracted retirees,” explains Eric Bramlett, REALTOR and owner of Bramlett Real Estate .

“With new developments continuing to emerge, there’s potential for prices to stabilize or decrease, creating an opportunity for buyers.”

That means you may be able to find a house for less than the median home price of $423,800, while also enjoying the amenities of the area, including its quiet pace of life, outdoor recreation, and healthcare.

5. Durham, North Carolina

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“If you're retiring and looking for a place that has good healthcare access and amenities, Durham could present some solid opportunities,” according to Rachel Stringer, a real estate agent at Raleigh Realty .

“I wouldn't expect bargain prices, but compared to Raleigh, you might find more room to negotiate.”

The median home price in Durham is $439,000, but Stringer points out that the prices have risen fast over the last several years, and the area may be due for a drop.

6. Macon, Georgia

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“One great place in Georgia for retirees where I expect home prices to drop is Macon,” explains Charissa Bright, owner and founder of Bright Buys Houses.

“It's a charming city where the market is cooling off a bit and it gives retirees a chance to find affordable homes while enjoying a peaceful and laidback lifestyle.”

The median home price is $185,900, and Bright says that Macon has affordable living, good healthcare, and a walkable downtown with plenty of local shops and restaurants to enjoy in your downtime.

“Plus its mild weather and lower costs make it perfect for retirees who want a cozy community without going broke,” she adds.

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7. Cary, North Carolina

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“Cary has always been popular, especially with people looking to settle down in a quieter setting that's still close to everything,” says Stringer. “But, even there, we're seeing a bit of a slowdown.”

She notes that the area, which has a median home price of $624,900, is seeing prices trend downward, especially in the higher price ranges. That could make retiring in this mid-size city with a mild climate more accessible.

8. Cedar Park, Texas

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Austin may be out of reach for many retirees, but Cedar Park gives you city access with more affordability. The median home price here is $565,000, but Bramlett says that the area’s rapid growth may soon lead to price corrections.

Those corrections may be robust enough to make it more affordable for retirees who want access to amenities without the steep costs associated with urban living.

Not only that, but Cedar Park residents will be able to enjoy the lack of state income tax that Texas is known for, as well as parks, shopping, and access to the healthcare system in Austin.

Bottom line

When considering a place to retire, you may want to consider other important factors, like taxes, in addition to house prices.

With things like property taxes, state income taxes, and taxes on social security benefits, these regionally specific numbers could significantly impact a town's affordability and make a major difference in how your retirement savings stack up .

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).