Realtors Predict House Prices Will Plummet in These 8 Popular Retirement Towns

While the real estate market has been hot over the past few years, signs indicate that it may be cooling, which is good news if you want to better prepare for retirement and are seeking more affordable living options.

From the Midwest to the South, several markets have long been favorites among retirees for their charm, amenities, and access to health care. Now that prices are expected to drop in some of these areas, it may be time to consider making a move.

We asked the people who know for their thoughts on where prices will plummet in retirement towns, and here's what the real estate agents we spoke with had to say.

Amy Stockberger, broker and owner at Amy Stockberger Real Estate, reports that her market is attractive to retirees thanks to its affordability and lower cost of living, with a median home price of $325,000.

"With no state income tax, we offer a more economical lifestyle compared to many other states, along with access to top health care facilities, diverse attractions, and Midwest charm," says Stockberger. 

She also notes that there are four seasons, lots of outdoor recreation, and convenient public transportation.

"Colorado Springs is showing up on more top 10 retirement communities lists than ever before, but home prices have been flat for the past two years, with prices slowly dropping in the higher sales prices," says Andrew Fortune, owner and REALTOR at Great Colorado Homes.

He notes that inventory is rising, which could also drive down prices from the current median home listing price of $475,000. Combine that with low property taxes and a desirable climate, and you have an ideal location for budget-conscious retirees hoping to have it all.

"The temperature is warmer than the mountain towns, so retirees like to live in Colorado Springs and vacation in the mountains all year round," he continues. "Downtown Colorado Springs and Manitou Springs have good walkability and charming turn-of-the-century homes that are great for retirees."

If you want proximity to the retirement hotspot of Phoenix, Arizona, but you don't want to pay the same prices, look at the suburbs. In Surprise, Arizona, the median home listing price is $430,000.

"It's a subtle price adjustment that's going on right now for Surprise," explains Kevin Shahnazari, founder and CEO of FinlyWealth. 

"Recent interest rate hikes have chilled the demand, which has created an excellent time for buyers to step in. I got a property in Surprise for one of my clients for 8% below last year's market value."

That's not all this Arizona hot spot has going for it, either. Shahnazari notes that the state doesn't tax social security benefits and has a $2,500 deduction for other retirement income.

"Medical care is available, with Banner Health and Mayo Clinic having operations nearby," he continues. "Add in the year-round sunshine and communities where one can often get around via a golf cart, and there's little left to want."

Texas is a favorite destination for retirees, thanks to its lack of state income tax. And the good news is prices may be dropping in some Lone Star State cities.

"Georgetown, known for its charming downtown and relaxed atmosphere, has long attracted retirees," explains Eric Bramlett, REALTOR and owner of Bramlett Real Estate. 

"With new developments continuing to emerge, there's potential for prices to stabilize or decrease, creating an opportunity for buyers."

That means you may be able to find a house for less than the median home listing price of $447,000, while also enjoying the amenities of the area, including its quiet pace of life, outdoor recreation, and health care.

"If you're retiring and looking for a place that has good health care access and amenities, Durham could present some solid opportunities," according to Rachel Stringer, a real estate agent at Raleigh Realty. 

"I wouldn't expect bargain prices, but compared to Raleigh, you might find more room to negotiate."

The median home sale price in Durham is $430,000, but Stringer points out that the prices have risen fast over the last several years, and the area may be due for a drop.

"One great place in Georgia for retirees where I expect home prices to drop is Macon," explains Charissa Bright, owner and founder of Bright Buys Houses. 

"It's a charming city where the market is cooling off a bit, and it gives retirees a chance to find affordable homes while enjoying a peaceful and laid-back lifestyle."

The median home sale price is $175,000. Bright says that Macon has affordable living, good health care, and a walkable downtown with plenty of local shops and restaurants to enjoy in your downtime.

"Plus, its mild weather and lower costs make it perfect for retirees who want a cozy community without going broke," she adds.

"Cary has always been popular, especially with people looking to settle down in a quieter setting that's still close to everything," says Stringer. "But, even there, we're seeing a bit of a slowdown."

She notes that the area, which has a median home price of $688,000, is seeing prices trend downward, especially in the higher price ranges. That could make retiring in this mid-sized city with a mild climate more accessible and help you maximize your retirement savings in the long run. 

Austin may be out of reach for many retirees, but Cedar Park gives you city access with more affordability. The median home sale price here is $550,000, but Bramlett says that the area's rapid growth may soon lead to price corrections.

Those corrections may be robust enough to make it more affordable for retirees who want access to amenities without the steep costs associated with urban living.

Not only that, but Cedar Park residents will be able to enjoy the lack of state income tax that Texas is known for, as well as parks, shopping, and access to the health care system in Austin.

When considering a place to retire, you may want to consider other important factors, like taxes, in addition to house prices.

With things like property taxes, state income taxes, and taxes on social security benefits, these regionally specific numbers could significantly impact a town's affordability and make a major difference in your retirement plan.