Thursday, July 4, 2013

RealtyTrac® Ranks Top 15 Retirement Hot Spots for Real Estate Investing and Provides Tips on Buying with IRAs




IRVINE, Calif. – July 4, 2013 — RealtyTrac® (www.realtytrac.com), the leading online marketplace for real estate data, today released a special report on  real estate investing in cities that are retirement hot spots — where at least one-third of the population is age 65 or older.

Daren Blomquist
 “These popular retirement cities will very likely be an area of growth in the housing market over the next 15 years as baby boomers retire in greater numbers,” said Daren Blomquist, vice president at RealtyTrac.
 “The baby boomer generation started retiring in 2011, a trend that will continue at least through 2029, ensuring plenty of demand for both rentals and owner-occupant purchases in these markets for the foreseeable future.”

 The report found 40 cities nationwide with at least 33 percent of the population age 65 or older. Among these 40 cities, 25 posted annual increases in median home prices, and 27 had a positive capitalization rate — which indicates rentals in those markets generate positive cash flow.

Naples, FL Fifth Avenue Shopping District
RealtyTrac also included relevant data on cost of living, average temperature and annual chance of sunshine in each of these markets.

 RealtyTrac ranked the top 15 of the 40 retirement hot spot cities based on the annual percent change in home prices as of May. 

Topping the list was the central Florida town of Dunnellon, where 38 percent of the population is retirement age or older and home prices jumped more than 31 percent in the past year.

 The estimated cap rate in Dunnellon is more than 10 percent based on the average rent for a three-bedroom home there.

Six other Florida cities made the top 15 list: Naples, North Fort Myers, Punta Gorda, Sun City Center, Venice, and Orange City. Arizona and California each contributed two cities to the list, and Arkansas, Pennsylvania, Oregon and New York each had one city in the top 15.

Emmett Laffey
 "The Hamptons will continue to grow into a retirement hot spot on Long Island, offering an attractive environment for seniors,” said Emmett Laffey, CEO at Laffey Fine Homes International, which covers Long Island and the five New York boroughs.

"Developers’ appetite to construct housing aimed towards retirement-aged adults is growing again. They are well aware that this buyer pool will only increase over the next 15 years.”

Top 15 Retirement Hot Spots for Real Estate Investing

City

Retirement Age Pct
Cost of Living Index
Average Temp
Annual Chance of Sunshine
Median Sales Price May 2013
Annual Pct Change in Price
Cap Rate
Dunnellon, Florida
38%
102.05
70.30
66.85
$76,941
31.42%
10.34%
Naples, Florida
44%
159.56
74.10
72.88
$267,473
26.79%
3.84%
Hot Springs Village, Arkansas
58%
104.59
61.80
59.84
$170,000
25.93%
4.87%
Douglassville, Pennsylvania
59%
107.03
51.10
55.89
$252,000
22.33%
3.80%
Sun City, Arizona
73%
116.81
73.20
80.87
$113,275
19.90%
8.86%
North Fort Myers, Florida
44%
106.39
74.90
72.88
$84,500
19.01%
9.39%
Rancho Mirage, California
46%
152.14
73.90
72.05
$430,000
16.77%
2.70%
Punta Gorda, Florida
45%
119.80
73.90
72.88
$138,938
16.71%
6.11%
Sun City Center, Florida
76%
105.83
71.90
66.85
$99,750
14.66%
8.73%
Venice, Florida
52%
115.51
73.20
72.88
$148,238
11.46%
6.52%
Florence, Oregon
38%
98.71
51.90
42.90
$165,000
10.37%
4.89%
Green Valley, Arizona
72%
108.37
64.20
77.81
$144,550
10.13%
6.48%
Seal Beach, California
39%
149.00
65.30
76.16
$692,000
9.84%
2.57%
Orange City, Florida
34%
106.38
70.10
62.74
$68,000
8.80%
12.92%
East Hampton, New York
43%
184.30
51.90
57.65
$952,500
8.18%
2.09%

For a complete copy of the company’s news release, please contact:

Jennifer von Pohlmann
949.502.8300, ext. 139

Ginny Walker
949.502.8300, ext. 268

Data and Report Licensing:
800.462.5193

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