With the older population in the US housing market growing at a very fast pace, real estate investors might want to consider buying rental property in the best places to retire.
US Housing Market 2020- Best Cities to Retire
Do you want to invest in real estate? According to a RentCafe study, the number of renters aged over 60 went up by 43 percent in the last decade. Over 22 percent of the current population is aged 60 and above, and come 2035, senior citizens will make up one-third of the rental market in the US. With today’s renter demographics shifting, the top locations of where to buy investment property are also changing. The increase in senior renters greatly outpaced the increase in the other two age groups. Those aged 35-59 grew 17 percent and renters aged below 35 only grew by 7 percent in the same period.
Clearly, senior housing is quickly becoming an opportunity zone for real estate investors as more and more look towards the fastest-growing retirement cities for investment. If you’re seriously considering buying an investment property targeted towards the older segment of renters, you need to know where the best places to retire in 2020 are; this is where you’ll find a high concentration of your target demographic.
1) Tucson, AZ
It’s no surprise that a low cost of living, warm weather, and affordable housing is something retirees are attracted to. Tucson is quickly growing to be one of the best places to retire in Arizona. Mashvisor- one of the best real estate investor websites– has data on how long-term rentals perform in the Tucson real estate market:
- Median Property Price: $280,783
- Price per Square Foot: $149
- Price to Rent Ratio: 19
- Average Days on Market: 62
- Monthly Traditional Rental Income: $1,240
- Traditional Cash on Cash Return: 1.4%
With over 65 retirement communities, 40 plus golf courses, many bike paths and hiking trails, and a lively downtown, the Tucson housing market is drawing in more and more retirees every year. But this isn’t just one of the best places to retire, it’s also got a very strong real estate market. Residential real estate has increased in value by 5.7 percent since last year and is expected to go up another 3.4 percent next year.
One of the most popular areas in Tucson among retirees and senior citizens is the Sam Hughes neighborhood. To analyze it and other neighborhoods for return on investment, click here.
Related: Arizona Housing Market Predictions for 2020
2) Tampa, FL
Florida is no stranger to the retirement community. You probably assumed that most of the best places to retire are in this state. Florida is expected to have a population of more than 23.5 million by 2020, with over 28 percent of this population being people aged 60 and over. Emerging as one of the best places to retire in Florida is the Tampa housing market. Let’s take a look at our data:
- Median Property Price: $378,705
- Price per Square Foot: $192
- Price to Rent Ratio: 18
- Average Days on Market: 77
- Monthly Traditional Rental Income: $1,731
- Traditional Cash on Cash Return: 1.8%
A lot of new construction in the Tampa real estate market is being built with the aging boomer generation in mind. It’s attractive and considered one of the best places to retire for many because it’s a more affordable city (as compared to hot Miami) but still comes with the sun, white beaches, and favorable tax laws. With senior citizens making up 18.7 percent of the Tampa Bay metro area’s population, you should be buying property in Florida. This is definitely where to buy investment property in 2020 if you’re looking for a fast-growing retirement city!
Related: 3 Florida Housing Market Predictions for 2020
3) Denver, CO
Denver is gaining attention from the nation’s aging population and is soon going to be one of the best places to retire in Colorado. Now while it may be a bit of a pricier city, the Denver real estate market has the potential for a profitable traditional rental strategy. Check out the data:
- Median Property Price: $459,423
- Price per Square Foot: $286
- Price to Rent Ratio: 19
- Average Days on Market: 49
- Monthly Traditional Rental Income: $1,968
- Traditional Cash on Cash Return: 1.9%
Looking for Colorado cap rates by city? Check out our state guides.
As the biggest city in the State of Colorado, this rapidly growing real estate market has an increasing percentage of retirees in it. It isn’t just a hot spot for young entrepreneurs. This is the city that’ll keep retirees active with a long list of things to enjoy in the community. Retirees won’t know what to choose from between fishing spots, skiing, rock climbing, hiking trails, and golf courses. Great news for real estate investors, the Denver housing market is currently a buyer’s market! Start analyzing houses for sale in Denver by signing up for Mashvisor now.
4) Las Vegas, NV
The city of Las Vegas has made quite the reputation for itself with it being the go-to spot for the party-driven younger generation, but boomers have their eyes set on Sin City as one of the best places to retire. Let’s take a look at our data for how investment property performs in the Las Vegas real estate market:
- Median Property Price: $378,735
- Price per Square Foot: $202
- Price to Rent Ratio: 23
- Average Days on Market: 76
- Monthly Traditional Rental Income: $1,375
- Traditional Cash on Cash Return: 1.6%
With 55 plus communities, the 14 percent of 65-year-olds and higher in the Las Vegas’ population is enjoying their years of retirement in this desert city. Sun City Summerlin is the largest active adult community located in Las Vegas, making it one of the best places to retire in Nevada.
Las Vegas home values are still increasing, with a real estate appreciation rate of 3.3 percent since last year, but it’s currently a buyer’s market, so I recommend you start searching for investment properties for sale while the real estate listings are high.
5) Sacramento, CA
Low prices are making Sacramento one of the best places to retire in California. It isn’t just the aging generation of boomers awakening the city, young professionals are drawn to the Sacramento real estate market as well. Check out our real estate market analysis for Sacramento:
- Median Property Price: $413,177
- Price per Square Foot: $266
- Price to Rent Ratio: 22
- Average Days on Market: 60
- Monthly Traditional Rental Income: $1,585
- Traditional Cash on Cash Return: 1.3%
Over half of the housing units in the Sacramento real estate market are rented. The population includes 59,796 seniors. Many of the boomers today are mainly attracted to the trendier and more historic side of the city- East Sacramento. Midtown is another very popular neighborhood among renters. The Sacramento housing market is full of investment potential and you could definitely consider it to be one of the best places to retire in the US.
Related: 5 California Housing Market Predictions for 2020
The best way to find rental properties in the best places to retire is to use our investment Property Finder– one of the best real estate investment tools. With a free Mashvisor account, you can filter search results based on your criteria. Learn more about it here.