In 2024, the majority of baby boomers have either retired or are nearing retirement . For those who haven’t settled where they want to be quite yet, one of the lingering questions is where to live.
There are so many places to choose from that it can be hard to make that kind of decision. Part of that decision entails knowing the overall cost of living and housing in specific parts of the country. Factors like taxes and environment are also important considerations.
So, what are the best and worst states for boomers to buy a home? Here’s what the experts say .
Chris Motola, the special projects editor at National Business Capital , said that New Hampshire is, in his opinion, one of the best states for older Americans to buy a home.
“Property in New Hampshire isn’t cheap, but it rates well in quality of healthcare, overall safety and offers some tax advantages,” he added.
The median listing price is $550,000, and the effective property tax rate is 1.61%. The state doesn’t have a personal income tax, so income from Social Security and other retirement accounts will only be taxed on a federal level.
This is good news for those who want to stretch their retirement funds further — and who already own a home or have significant assets and are willing to sell it when they move.
West Virginia
Citing data from a recently published National Business Capital data report, Motola also chose West Virginia as one of the best places to buy a home.
“As far as sheer affordability goes, West Virginia has the cheapest property and some of the lowest costs of living in the country, so your retirement savings can go a long way there,” he said.
West Virginia does impose partial taxes on retirement income (including Social Security), but there are deductions to offset the extra cost. Sales (6%) and property taxes (0.55%) are also on the lower side.
Plus, properties really aren’t that expensive. The median listing price is just $259,900, well below the national average.
For those who want to live further south, South Carolina is worth checking out. It’s cheaper than many parts of Florida, both in terms of overall cost of living and real estate.
“South Carolina can probably offer the closest thing to the classic subtropical Florida retirement plan at a time when Florida has become quite expensive,” said Motola. “Housing is still fairly affordable there, taxes are low and you won’t have quite as much trouble with the weather.”
The effective property tax rate is just 0.46%, while the median home listing price is $364,900. There’s no state tax on Social Security benefits either.
3 Worst States for Boomers To Buy a Home
California
California may be beautiful with all of that sunshine, but it’s one of the most expensive states to live in.
According to Elyse Sarnecky, the director of marketing at Marketplace Homes , “California is known for its high cost of living, and the real estate market is still out of reach for many retirees.”
Retirement income — including that which comes from pensions and other accounts — are fully taxable. The effective property tax rate is pretty low at just 0.75%, but the median property listing price is $788,000.
New York
Similarly, New York is one of the most expensive areas in the country, though some areas are still affordable.
“The high property taxes and expensive homes, especially in and around New York City, make it a tough state for retirees,” said Sarnecky. Plus, rising home prices and frigid winters don’t help the cause.
The median home listing price in New York is $655,000, while property taxes hover at around 1.4%. The good news is that Social Security benefits aren’t taxed at a state level. However, some other forms of retirement income are.
Motola pointed out that healthcare tends to be more costly in New York, too.
New Jersey
And then there’s New Jersey where the median home listing price is $579,000. If that isn’t a deterrent, the taxes might be.
The state doesn’t tax Social Security benefits, but it does tax pensions. Their property taxes are also some of the highest nationwide with an effective tax rate of 2.26%.
“Even though the coastal lifestyle can be appealing, the financial burden and harsh winters make it less ideal for retirees looking for a more relaxed and affordable environment,” said Sarnecky.
Please note: Median listing price is sourced via Redfin and is accurate as of Sept. 25, 2024.
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local News
Comments / 0