What are the Best States for Investor Retirement?

By Evelyn Long

After years of dedicating your time to a career or side hustle in real estate, many people find that retirement gives them a new sense of freedom – including where they get to live.  As a real estate investor, you have the advantage of pre-existing knowledge about real estate markets, taxes and long-term savings.

That’s why thinking through your future retirement home now is an excellent idea.  Obviously, your priorities will be personal considerations like distance from family and weather preferences.  However, you should also consider important aspects of retirement living in different states — like the housing market, cost of living, taxes, and health care benefits before putting down roots.

Whether it’s moving near the coast, off the grid, or just to a town with a great golf course, the possibilities to begin a new chapter someplace unfamiliar are endless.  Here are six of the best states for investors to retire in.  And, for those who are still active investors, these are also some of the top states to invest in real estate as well.

1. North Carolina

North Carolina has a lot to offer retirees, from its southern hospitality to its pristine coastlines and spectacular mountain getaways.  It also boasts a moderate climate with four distinct seasons for those who still want to experience fall and winter weather.

Plus, you can choose from a variety of living settings, whether you like the charm of Asheville, the bigger city bustle of Charlotte or Raleigh or small-town country calm.

However, North Carolina delivers plenty of benefits from a financial perspective as well. For example, North Carolina’s overall cost of living is almost 10 points below the national average, including housing, utilities, groceries, and transportation costs.

Seniors may also appreciate the lack of taxes on Social Security income and state estate tax, as well as flat-rate income taxes and lower corporate income taxes.  Because of this, North Carolina is considered an ideal state for seniors to find work or start their own businesses.  If you’re not willing to give up your real estate investment career, you might find this an attractive place to be.

2. Florida

Of course this sunny state was bound to make the list. Florida has long been the quintessential state to retire in, providing year-round vacation weather and numerous active adult communities that feel more like summer camp.

There are several reasons why retirees flock to Florida, including the tax-friendly benefits, easy access to international airports, theme parks, and plenty of things to do for those who like to stay busy.

Florida is home to Busch Gardens, Disney World and Everglades National Park, among numerous other natural and manmade attractions. Not to mention, there are 825 miles of sandy beaches on both coasts for you to explore and relax.

However, perhaps most appealing is senior tax breaks on state income, retirement income, and Social Security benefits. Also, the large population of seniors living in Florida means the state boasts some of the best geriatric medical specialists in the nation.

3. Georgia

Georgia is a great option for investors to invest in retirement property, especially if they aren’t as keen on going all the way south to Florida. Georgia is known for being a landlord-friendly state and it also boasts fast growth for those looking to maintain passive income even in retirement.

There are a lot of advantages to investing and retiring in Georgia. For one thing, the median property value is 16 points below the national average while the cost of living is 6.6% below, including grocery, utilities, and health care costs.

Additionally, Georgia’s future job growth is expected to increase by 43.93%, and large companies, such as Coca-Cola, Delta Airlines, Home Depot, and Cox Enterprises, are headquartered there. With more families and individuals moving to Georgia for work, real estate values and housing demands should grow exponentially.

4. Tennessee

If you’re looking for a budget- and tax-friendly place to live with rolling landscapes and vibrant cities, Tennessee may be the perfect state to consider post-retirement.

The cost of living is well below the national average at 87.6% for grocery, transportation, housing, and utilities, while health care averages align with median prices across the country.

According to the U.S. Census Bureau, 16.7% of the population is 65 and over, meaning retired residents in Tennessee can find plenty of people close in age to become friends with.

5. Alabama

If you like what Florida and Georgia have to offer, but they’re just not on your radar, maybe you’ll want to consider investing in Alabama instead.

Alabama is just as tax-friendly as its neighboring states, and the cost of living is even lower at 17.7% below average. Like other southern states, Alabama doesn’t tax Social Security and has some of the lowest property taxes in the United States.

Otherwise, new residents will love exploring Alabama’s many small-town gems, charming historic homes, landmarks, and wildlife preserves.

6. Idaho

Although you may not have considered it before, Idaho is an up-and-coming state to invest in for your retirement. Nature enthusiasts will love its northwestern backdrop of protected wilderness, untouched forests, mountain ranges, and flowing rivers.

Idaho also has a high median property value and appreciation, an excellent incentive for property investors. In the past year, job growth has increased 2.8% throughout the state, helping to boost the real estate market for buyers and renters.

Retirees are bound to appreciate the low crime rates, as well. The state’s violent crime and property crime rates are much lower than the country’s average by 7.5% and 9.4%, respectively.

The Most Retirement-Friendly States

When choosing the right place to invest in for your retirement, you should always consider where you can have everything you want.  Lower cost of living?  Warmer weather?  Outdoor recreation?  A fun city to wander around?  Access to airports for frequent travel?

Retirement should be a time for you to enjoy things you couldn’t participate in before and is ultimately an investment in your happiness and well-being.

Author

Evelyn Long is the editor-in-chief of Renovated. Her real estate work has been published by the National Association of REALTORS®, Rental Housing Journal, and other online publications.