News & Trending Mortgage & Loans News

9 Cities Realtors Think Will Lose Their "Retirement Hotspot" Status

Some traditional retirement destinations are losing their luster.

By Cassandra Yorgey

Edited by Lauren Wellbank

Updated Feb. 3, 2025

For many retirees, retirement means freedom, which allows them to choose a new geographic location for reasons other than a job. These can include better weather, lower taxes, better housing affordability, or many other reasons catered to a person's unique preferences.

Some traditional retirement hotspots have lost their luster, and retirees are now beginning to migrate elsewhere to meet their retirement needs.

Financial restraints are increasingly a factor for those reaching retirement age. Many have to seek new ways to help pay the mortgage, which has them considering homes outside traditional retirement hotspots.

Keep reading to see what's out, what's in, and what you need to consider before making a move.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Naples, FL

Sunny weather, access to healthcare, and a vibrant community filled with activities like golfing have made Naples a popular retirement destination.

However, in recent years the rising cost of living, coupled with rocketing Homeowners Insurance (HOI) premiums, have pushed retirees to seek homes in areas less likely to be hit by hurricanes.

Many are choosing places like North Carolina or Tennessee that still offer the milder, warm weather but with less weather associated risks.

"Cities like Asheville offer a more temperate climate, thriving arts scenes, and outdoor activities," according to Jon Alper, a lawyer who specializes in Florida asset protection and estate planning.

"States like Tennessee provide affordability and a slower, more relaxed way of life that appeals to those looking for a quieter retirement."

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Sarasota, Florida

Florida's lack of state income tax has made many of its cities — like Sarasota — a prime retirement destination for those who are on fixed incomes or who have a sizable savings to put toward their retirement years.

"While Florida has always been prepared to welcome retirees, the challenges of managing weather-related risks have revealed some cracks," according to Alper.

"Concerns about accessibility during emergencies, especially for older populations, have led some to consider areas where the weather is less of a factor."

The Villages, Florida

Many retirees seek a community of like-minded individuals, which makes locations like The Villages popular for retirement.

These communities are known for restrictions that regulate the design and operation to cater specifically to senior living, according to Alper, who says some people find them too restricting and have instead decided to branch out to other areas, like Michigan's lakefront communities.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Savannah, Georgia

tree branches covering the path with lantern lights at forsyth park

"Savannah, Georgia used to be a popular spot for retirees because of its rich history, warm winters, and coastal lifestyle," according to Charissa Bright, owner and founder of Bright Buys Houses in Watkinsville.

However, she says that higher property taxes and insurance costs are now causing some retirees to look for more affordable places throughout Georgia and South Carolina.

"There are a growing number of retirees choosing Athens, Georgia instead." she continues, adding that Athens has a lively community, much lower expenses, and great healthcare options.

Allentown, Pennsylvania

The Lehigh Valley has previously attracted retirees with its strong medical care infrastructure and reasonable cost of living, but recent years have seen costs skyrocket without additional benefits.

Few natural disasters are likely to strike residents, however once a year they are plagued with an unreasonable number of invasive lantern flies. Now, it sounds like folks nearing retirement age are setting their sights more towards southern states.

"Retirees are also being lured to Fredericksburg, Texas, with its combination of historical charm and modern amenities, according to Alexei Morgado, CEO and founder of Lexawise Real Estate Exam Preparation.

"Affordability, quality healthcare, and a balanced lifestyle have now become the top priorities for retirees."

Charleston, West Virginia

West Virginia had gained recognition from retirees simply through a lower cost of living. Surprisingly, the state ranks very well for low property taxes and affordable HOI, which can draw in the retirement crowd.

But, one area it doesn't rank particularly well is weather, because it does experience all four seasons. Folks looking for someplace sunny and warm might be disappointed, and may prefer something further south, according to Morgado.

Grow Your $$: 11 brilliant ways to build wealth after 40

Dunedin, FL

"The city lies on the Gulf Coast of the Sunshine State and has seen its number of retirees decline over recent years," according to Omer Reiner, president of FL Cash Home Buyers, LLC, who notes that the cost of living has been steadily rising in Dunedin, and it's once beautiful weather has been shifting in less desirable direction.

Instead, snowbirds are now eyeing South Carolina instead. "Everyone loves the beaches like Myrtle Beach, they love the fishing, golfing, southern food and the quaintness of the cities," says Texas real estate agent Gleshia Joyner, who adds that other parts of the state have some pretty great spots going for them as well, like Hilton Head.

Separately, Ilene Horowitz, a residential REALTOR® with Coldwell Banker Realty in Mountain Lakes, New Jersey said that she expects some folks to still flock to Florida, but she thinks many more will find their dream retirement spot in Delaware.

"Recently, I've seen a shift among some clients towards inland areas in these states rather than coastal regions," she says. "Some are also considering city centers over beachfront locations in Florida, while Delaware's milder climate and proximity to retirement communities near beaches are attracting interest."

Los Angeles, CA

Everybody loves Los Angeles, but retirees are moving away from the California hotspot because of the high cost of living. Additionally, the ongoing wildfires of January 2025 have devastated the area leaving a housing crisis in their wake.

"Retirees are moving away from LA to retire in the Coachella Valley," explains Holden Andrews, founder of Helpful Home Group, who says the lower cost of living coupled with nice weather and access to senior-friendly activities like pickleball, golf, and tennis, all make this area a bit more popular.

Portland, OR

Portland is declining as a retirement destination, with some choosing to leave that area and relocate across the country to coastal Virginia instead, according to Jacki Paolella, a Hampton Roads REALTOR®, buyer, and listing agent with Keller Williams Coastal Virginia has noticed clients becoming frustrated with the city.

Instead, Paolella sees many benefits to retiring in southeastern Virginia.

"Our proximity to the ocean, beautiful waterways, cost of living, Virginia's laws about LGBTQ+ rights, and our (mostly) mild weather drew them to the area," she says of the incoming retirees planning to spend their golden years in Virginia.

Earn up to a $300 bonus and grow your money with up to 3.80% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. See full bonus and annual percentage yield (APY) terms at <a href="sofi.com/banking#1">sofi.com/banking#1</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Jan. 24, 2025. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account or overdraft fees⁵ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.⁶ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

Open your SoFi account and set up direct deposit

Bottom line

The shifting retirement landscape is changing what retirees once thought of as hotspot locations, and many Americans are looking in less traditional areas, including overseas, when it comes to finding the perfect place to spend their retirement.

This is why those about to retire may want to rethink those popular locations when it comes time to retire, and instead consider areas where it may be easier to maximize retirement savings for a better quality of life.

More from FinanceBuzz:

Build passive income with shares of rental homes

Ark7 - Real Estate Investing Benefits

Invest in cash-flow-generating, professionally managed rental properties without having to buy the whole property
Sell shares at will at no cost
3% sourcing fee and 8-15% monthly management fee
$20 minimum investment
Ark7 investors have earned 5%+ annualized distributions from monthly income alone⁹ The 5%+ return is the portfolio average and is based on figures since Q4 2022.

Get started