Top Retirement Towns: Where Rental Costs Are Expected to Rise

Many people 65 and older are looking forward to a stress-free retirement in a nice part of the country. Unfortunately, housing prices are increasing in these sought-after locations, and the skyrocketing cost of living is not ideal for your retirement plan. 

Spending a significant chunk of your monthly income on rent will quickly drain your net worth, and it's a money mistake you should try to avoid.

We spoke with several real estate professionals to understand the market's direction in popular retirement towns. Here are 10 popular retirement cities where rents are projected to significantly increase.

Boise, Idaho

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Outdoor lovers flock to Boise to explore the endless trails, rivers, and mountains surrounding the city. One of the most appealing aspects to the area until recently was the relatively low cost of living, which made it appealing to those looking to retire there.

Now, the secret is out and rents are surging in Boise. Median rent in the city has exploded by 32.1% from $1,672 to $2,208 over the past year. That puts a significant dent in retirees' finances looking for affordable rent on a fixed income.

Richmond, Virginia

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With plenty of historical heritage and walkable streets, Richmond is one of the best places to retire in the state of Virginia, though rents are increasing due to several factors.

According to Cindy Bennett of Maison Real Estate Boutique, the aftermath of the pandemic, coupled with high interest rates, has created a less affordable environment.

"Central Virginia has seen a huge influx of people from other (often more expensive) parts of the country since the pandemic. UVA research shows that over 52,000 people have moved to Richmond since 2020," she explains. But, Bennett doesn't think that those rents are set to deter anyone from making the move.

That's because she says this area is a destination for those moving from more expensive areas of the country, where these higher rents may end up being lower than what they're already paying.

"Average rents in Richmond are around $1,500-1,600 — per Zillow, 22% less than the national average — but, I work with lots of relocating people, and that is indeed an average," she says, adding that it's getting hard to find rentals for less than $2,000. 

"I don't really see any of this changing any time soon, because the underlying factors seem to be getting worse rather than better."

Virginia Beach, Virginia

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With 38 miles of pristine coastline, this inviting beach town is one of the hottest retirement spots in Virginia. However, the lack of housing availability and affordability only seems to worsen.

The median rent has risen a whopping 14.4% in the past year from $1,776 to $2,032. Given the military and government presence in the area, housing has always been in short supply. Still, such a sharp increase makes it difficult for retirees on a fixed income.

Durango, Colorado

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As one of Colorado's most idyllic mountain towns, Durango has a lot going for it. Stunning beauty, mild weather, and loads of amazing outdoor adventures are all great. 

Still, Brett Johnson of New Era Home Buyers, believes that demand is increasing at a rate that outpaces affordability.

"Durango, Colorado, with mountain vistas and small-town appeal, has been a retirement haven for decades, but constrained housing inventory and an influx of second-home purchasers are rendering it increasingly competitive," he says. 

"The attraction of its lively downtown, outdoor year-round recreation, and proximity to national parks ensures that prices will keep increasing, particularly as more and more retirees are making lifestyle relocations."

Charlotte, North Carolina

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With diverse neighborhoods, charming cityscapes, and plenty of outdoor activities, Charlotte has plenty to offer. The city has one of the best-maintained downtowns — with little clutter or garbage — and there's a vibrant social scene as well, making it a perfect retirement spot.

However, rents have been rising recently, making it tougher to afford. The area has seen the median cost of rent rise by 16.8% over the last year, from $1,719 to $2,008. Such a steep increase makes it harder to retire on a fixed income in Charlotte.

Grand Junction, Colorado

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Another gorgeous mountain town, Grand Junction, features plenty to love for the outdoorsy retiree. Still, Johnson says those same affordability and inventory issues are plaguing the town, and it will only increase.

"Grand Junction, Colorado is becoming a retirement mecca for those looking for affordability with no compromise on lifestyle, but inventory is reducing as more purchasers move in," he explains. "The combination of a robust healthcare industry, outdoor recreation, and lower cost of living compared to the Front Range is rendering it a destination of choice, and that demand is pushing prices higher."

Fort Myers, Florida

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This sunny beach city is an ideal retirement spot, but its popularity with older individuals means people looking to retire in the next few years will have to pay top dollar.

 According to Holden Andrews, founder of Helpful Home Group, Fort Myers is already skewed towards an older population, and the city is growing despite a lack of new inventory, driving up prices.

"According to Neilsberg data, 39% of the population in Fort Myers is over the age of 50," he says. "This, combined with the population of the city growing at around 3% per year, has caused an increase in demand for rentals, causing them to go up."

Prescott, Arizona

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Nestled in the Prescott National Forest and surrounded by the Bradshaw Mountains, Prescott offers stunning natural scenery and plenty of other amenities geared towards retirees.

Unfortunately, the word is out on Prescott as a retirement destination, so the cost of living there has risen greatly over the past few years. Median rents have risen 14.9% in the past year, from $1,662 to $1,910, so the appeal of this cozy community has dwindled.

While it's still cheaper than other cities on the list, it's no longer an ideal retirement destination for those looking to stretch their dollar.

Pensacola, Florida

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Life along the Gulf Coast in Pensacola is great, with stunning white-sand beaches and emerald-green waters. Not to mention the year-round beach activities like swimming, fishing, and boating.

Still, the beach life will cost you quite a bit these days, with the median average rent now 24.6% higher than a year ago. Like many locations on this list, the lack of supply and surging demand are the culprits. 

The city can't keep up with the influx of retirees to Florida, so prices continue to increase.

Honolulu, Hawaii

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The Hawaiian islands are already a top retirement destination, but they're becoming increasingly expensive. There's a great housing demand in the state capital of Honolulu, pushing the median rent by 12.2% in the past year.

Prices were already incredibly high — the median rental will now set you back a stunning $3,114 a month — making this area hard to afford on a fixed budget. 

While there's plenty to like about living on Oahu, the high cost of living beyond just rent makes it a tough sell for all but the wealthiest retirees.

Bottom line

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Planning for retirement can be a daunting and arduous process, since you may feel like you need a crystal ball to predict the future. 

To make it easier for you to come up with an approach that will work for you, you may want to consider a city with a lower cost of living, as choosing a city with already escalating rents could be a recipe for disaster.

Making the right money moves regarding retirement will help you stretch your dollars and reduce your stress levels.

We can help boost your earning potential even further!

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