Editor’s Note: Dennis Fassett is a former corporate finance executive turned real estate investing “Cash Flow Mercenary.” Dennis specializes in single-family and multi-family cash flow properties and thoroughly enjoys assisting his fellow investors with their own strategies, including how to buy your first apartment building.
As an ongoing contributor to Mogul’s “Market News Updates,” Mr. Fassett provides us with his own unique, lively, and thought-provoking commentary on the timely industry news and events of today that are impacting our industry. And be sure to check out his other super-helpful Market News Updates. For now, enjoy...
From Dennis Fassett, Cash Flow Mercenary...
A good friend of mine called me recently to talk about an explosive area of REI that he had just done some research on – senior housing.
The niche he had researched was basically a “senior roommate” type of concept, where seniors who no longer want to live on their own, but don’t need assisted living, get together and live in a house that has been somewhat modified to accommodate things like wheelchairs.
I started looking into it and found an article that identified the best places to invest in senior housing.
The piece opened with something that we already know - senior citizens aren’t known for being made of money. In fact, they often struggle to make ends meet with a measly pension or retirement fund.
Some seniors live on social security alone, which means their income is an average of $1,300 per month, leading to a yearly salary of just $15,600.
Approximately 30% of homeowners who are 65 years old or older are still paying off a mortgage, with the median amount owed being $79,000. It’s difficult to stretch that money to cover all costs, so many seniors opt to sell their family homes in search of something smaller and easier to manage.
Because of this, if you’re going to take the plunge into senior housing, it makes sense on doing it in smaller markets where the cost of living is lower.
Fortunately, there are several places where living and housing costs are low, making them great places for seniors to retire on smaller incomes. If you’re looking for a great investment property to market towards seniors, here are some places to look:
10 senior- & investor-worthy cities
1. Albuquerque, New Mexico
The climate is warm, and the daily forecast is usually sunny, which makes it ideal for those with achy joints. There’s plenty to do for seniors in the area, and the cost of renting or buying a home is low, as is the cost of living.
2. Austin, Texas
Another warm location, Austin is a hub of activity and events, which could keep seniors occupied day and night. Housing costs in Texas are notoriously low compared to the rest of the nation, and retirees could keep their monthly expenses at less than $1,000 per month.
3. Asheville, North Carolina
The economy is strong in this small city, and the cost of living is 3% below the national average. It’s full of doctors and includes plenty of culture to keep retirees entertained.
4. Athens, Georgia
The tax climate is great, and the fact that it’s home to University of Georgia means there are plenty of affordable places to live, surrounded by entertainment for the elderly. It’s also rated high on the walkability index, and the crime rates are extremely low.
5. Boise, Idaho
As the state capital, Boise promises plenty of culture, both in the city and in the surrounding areas. The cost of living is a little higher than the nation’s average, but the median home price is very low. And it’s a college town, meaning there are always fun events on the schedule.
6. Cape Coral, Florida
If enjoying coastal scenery is your idea of retiring, Cape Coral is the place to be. Both the cost of living and median home prices are low, and the weather is incredible. The crime rate is low, and the air quality excellent.
7. Buffalo, New York
If you don’t mind a little cold during the snowy winters, Buffalo is an extremely affordable place to live. The city provides senior discount cards, good for local businesses all over the city, and there are always events going on to keep you busy.
8. Columbia, South Carolina
One of the best perks about living in Columbia is that those over the age of 60 receive free tuition to the University of South Carolina if they’re no longer working. Housing and the cost of living remain affordable, and there are also plenty of discounts for the city’s local businesses and entertainment venues.
9. Grand Rapids, Michigan
This small lake town is loaded with culture and low costs of living. Retirees can live on less than $1,000 per month, not counting what they spend on discount services from local businesses.
10. Spokane, Washington
The green scenery of Spokane is breathtaking in the summers, and the temperatures are moderate year round. The cost of living is very affordable, and it’s surrounded by plenty of recreational activities. There’s no individual income tax, making it an excellent tax climate for retirees.
Final thoughts…
If you’re looking to make an investment in retiree real estate, these are some of the best places to look.
The cost of living, median housing prices and recreational activities in each area put these U.S. cities at the top of the list.
Are you senior friendly?
Think you’ll get in the retiree real estate game? Which city? Share below.