- As boomers enter retirement age, many will begin to consider moving and buying a new home.
- States such as North Carolina and Florida remain popular among retirees for tax benefits.
- According to SmartAsset, these are the top 10 cities where boomers are buying houses.
Americans are getting older.
According to US Census Bureau projections, the share of Americans 65 or older is expected to increase from 17% in 2023 to 20% by 2030.
With a flood of new baby boomers reaching retirement age, many will want to move and buy a new home. Retirees might move for better weather, a lower cost of living, or to downsize from their current homes. According to the moving company HireAHelper, over 338,000 Americans retired to a new home in 2023.
And now that mortgage rates are finally coming down from post-pandemic highs, the housing market is becoming a lot friendlier to prospective buyers. According to Freddie Mac, the 30-year mortgage rate is now at 6.08%, its lowest level in two years.
The financial information firm SmartAsset analyzed 2023 mortgage data for 40 of the largest US metro areas to find the areas where boomers are buying up the most homes compared to the overall population. SmartAsset looked at factors such as the percentage of local boomers who bought a home, the number of mortgages issued to boomers, and the median home price.
Unsurprisingly, quite a few Florida cities made the list. The Sunshine State is known for its favorable tax advantages, with no income, inheritance, or estate tax, making it a popular place for retirees to settle down.
Retirees also have their eyes on cities in North Carolina. North Carolina offers strong healthcare facilities, a pleasant climate, and does not tax income from Social Security.
On the other side of the spectrum, boomers were the least interested in San Francisco. The city’s housing market is notoriously difficult to break into, and that holds true for retirees as well. Only 0.25% of local boomers bought a home in the San Francisco metro area in 2023 for a median price of $1.55 million.
Below, we list the top 10 most boomer-friendly cities to buy a home, the percentage of local boomer homebuyers, and the total number of boomer mortgages originated in 2023.
