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Prices across America skyrocketed during the COVID-19 pandemic. Inflation reached a high of 9.1% back in June 2022, and it’s taken the past couple of years for it to come back down to a reasonable level of 3.4% currently.
But while prices remain higher than they were back in 2020, and even before then, the cost of living has actually dropped somewhat in certain areas since the pandemic. This is good news for those thinking about their future — and where they want to retire.
From housing to groceries, here are some potential retirement hot spots where the cost of living has dropped post-pandemic.
San Francisco
“Areas where the cost of living has plummeted include urban centers that were previously popular, like San Francisco,” said Ricky Gomulka, managing parter and founder of Jetlevel.com.
A reason for this, according to Gomulka, is the increased prevalence of remote work. Now, people who are still in the workforce can find more affordable places to live instead of having to face the exorbitant prices in the big city. This has led to other things, like housing prices, to drop quite a bit as well — a major plus for retirees.
This doesn’t mean that major metros are cheap. It just means prices are down. In San Francisco, the typical home value is still $1,296,843, but that is a 1.6% drop since last year alone.
Tucson, Arizona
“In my 25 years in the insurance industry, I’ve assisted numerous clients in planning for retirement, including finding locations that are financially advantageous,” said John Crist, founder of Prestizia Insurance. “Tucson, Arizona, has become more attractive due to reduced healthcare costs and lower overall living expenses.”
According to Crist, the cost of senior services tends to be much lower in Tucson than in other areas — up to 20% less expensive in some cases.
Tucson might be on the up and up again, too. Right now, housing prices are $333,364 on average, a 4.5% year-over-year increase. Housing in the city is cheaper than the national average, though, which is $358,734.
Arizona does have a higher cost of living than many other parts of the country, but if you go a bit beyond the city center you can still find some affordable options as a retiree.
Memphis, Tennessee
According to Missouri Economic Research and Information Center, Tennessee is the eighth least expensive state to live in. The overall cost of living index is just 90.3 — as weighed against the 100 national average — and everything from groceries and housing to utilities and transportation is less expensive.
Memphis is still a popular retirement destination, but it also appears to be dropping in price since the pandemic. In the past 12 months, housing prices have dropped by 2.7%. Right now, the average home is only valued at $151,054, less than half the national average.
Daytona Beach, Florida
Florida has a relatively average overall cost of living, though groceries, utilities, and transportation are all generally cheaper than the national average. While some places, like Miami, are still extremely expensive to retire, other locations could be dropping.
One such city is Daytona Beach.
“Particularly, the housing market has become more affordable, with prices decreasing by around 12-18% since the pandemic,” said Crist. “This drop has been fueled by changes in the real estate market and a temporary reduction in demand.”
Temporary is the key word here, however. Right now, the typical home value is $266,067, but it’s gone up by 1.3% over the past year. Given time, prices could continue to rise and even accelerate.
Coudersport, Pennsylvania
While Coudersport itself might not be the most popular retirement destination, surrounding areas in Pennsylvania — like Lancaster and Thompsonville — still are. But in Potter County, there are some very affordable places to retire that might be just what retirees on a budget are looking for.
“Operating Airbnb properties in Potter County, Pennsylvania, gives me a unique perspective on housing trends, especially as they appeal to retirees looking for serene, affordable living,” said Jonas Zook, Jr. of Sweden Valley Cabins. “In Potter County, post-pandemic, we’ve seen a significant reduction in property prices which benefits those considering retirement in a quiet, scenic area.”
In some cases, Zook said, they’ve seen housing price drops of as much as 15% or even 20%. Other everyday expenses, like healthcare, utilities and groceries, have also dropped in the area.
As for housing, the average home costs $165,284 in Coudersport. This is a 2.8% drop in the past year alone.
Boise, Idaho
According to USAFacts, the cost of housing in Boise dropped by 9.5% from 2022 to 2023. While prices are starting to increase again — up 4.3% — this area could still be worth looking at.
“Boise has seen a dip in real estate prices because of an oversupply,” said Griff Harris, president of Griffith E. Harris Insurance Services. This is something that’s also been happening in other key areas throughout the Pacific Northwest.
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