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GOBankingRates
Why You Won’t Be Able To Afford Retiring in These 20 Cities in Florida
By Caitlyn Moorhead,
11 hours ago
Florida may be the Sunshine State, but how sunny is your retirement income and savings forecast if you are planning on retiring there? As it has long been a popular destination for retirees who want to fill their days with beautiful beaches, warm weather, rambling golf courses and the luxury of no state income taxes, even many smaller Florida cities are seeing a spike in real estate prices and general expenses across the board.
While financially planning for your life after work, you may have already ruled out retirement communities in more expensive places like Miami, Fort Myers, Palm Beach or Key West, but it is also good to know which smaller towns look to be offering less competitive cost of living options. Before you move to Florida — or any popular retirement destination — make sure your savings and Social Security benefits will last you as long as possible.
GOBankingRates recently evaluated which cities in Florida have rapidly increasing housing prices, property taxes, monthly expenses, mortgage rates or cost of living. Here are some key findings:
Of the over 450 cities in the study, nearly 30 have an average home value of over $1 million — places such as Key Largo, Bal Harbour or Miami Beach. However, the list below will focus more on small towns that are becoming unaffordable.
All 20 cities on this list still have an estimated cost of living under $3,000 a month.
Though Florida is a tax-friendly state as far as income state taxes are concerned, keep in mind this won’t factor in property taxes, estate taxes or surrounding rising real estate costs. Here are five cities that are becoming unaffordable where housing is concerned.
Mortgage payments can be the biggest chunk of your monthly retirement budget. Make sure you research which cities may have higher costs than you previously considered.
Whether it’s how rising food costs wrack up your grocery bill or if you just want to have some extra cushion to go to the occasional theme park or even Walt Disney World, necessary and discretionary spending can take a toll on your retirement savings. Some cities in Florida have growing estimated expenses that may push them to the point of unaffordability.
Interlachen
Population: 1,648
Average home value: $167,653
Average monthly mortgage payment: $999
Average monthly cost of expenditures: $1,843
Average monthly cost of living total: $2,841
Bascom
Population: 123
Average home value: $172,131
Average monthly mortgage payment: $1,025
Average monthly cost of expenditures: $1,838
Average monthly cost of living total: $2,863
Graceville
Population: 2,717
Average home value: $172,108
Average monthly mortgage payment: $1,025
Average monthly cost of expenditures: $1,838
Average monthly cost of living total: $2,863
Paxton
Population: 583
Average home value: $165,356
Average monthly mortgage payment: $985
Average monthly cost of expenditures: $1,913
Average monthly cost of living total: $2,898
Hosford
Population: 709
Average home value: $158,964
Average monthly mortgage payment: $947
Average monthly cost of expenditures: $1,953
Average monthly cost of living total: $2,900
Robert Daly / iStock.com
Florida Cities With Rising Cost of Living
There are so many rising costs it may seem hard to determine where your money is going every month. Knowing what to expect down the line can help you plan accordingly now. Here are five Florida cities where the rising cost of living may be too much for your retirement budget.
Wewahitchka
Population: 1,668
Average home value: $185,792
Average monthly mortgage payment: $1,107
Average monthly cost of expenditures: $1,822
Average monthly cost of living total: $2,929
Waldo
Population: 1,080
Average home value: $179,189
Average monthly mortgage payment: $1,068
Average monthly cost of expenditures: $1,869
Average monthly cost of living total: $2,937
Grand Ridge
Population: 824
Average home value: $185,213
Average monthly mortgage payment: $1,103
Average monthly cost of expenditures: $1,836
Average monthly cost of living total: $2,940
Century
Population: 1,952
Average home value: $186,812
Average monthly mortgage payment: $1,113
Average monthly cost of expenditures: $1,834
Average monthly cost of living total: $2,947
Coleman
Population: 918
Average home value: $195,013
Average monthly mortgage payment: $1,162
Average monthly cost of expenditures: $1,791
Average monthly cost of living total: $2,953
Methodology: GOBankingRates analyzed cities across the country to find replacement retirement cities for unaffordable cities. First, GOBankingRates gathered a few factors for each city, including: total population, as sourced from the U.S. Census American Community Survey; the cost of living indexes, as sourced from Sperling’s BestPlaces; the average expenditure costs for residents aged 65 and over, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey; the livability index, as sourced from AreaVibes; the average home value for single-family homes, as sourced from the Zillow Home Value Index; and, by assuming a 10% down payment and using the National Average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The total monthly cost of living can be calculated by using the average expenditure and the average mortgage costs. All data was collected on and is up to date as of July 8, 2024.
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