Why Baby Boomers Are Leaving These 5 Cities in 2024

Retirement marks a new beginning for many baby boomers, prompting them to rethink where they want to spend their golden years. Recent findings from Bank of America reveal that several major cities are seeing significant departures of retirees due to various challenges, making them less appealing for this demographic.

Washington, D.C.:

Many retirees are bidding farewell to Washington, D.C. due to its sky-high cost of living and concerning rates of property crime. With annual expenses averaging over $94,000 and median rents hitting $2,500 per month, based on data from BLS and Zillow respectively, the financial strain in the city is substantial. Niche.com’s poor crime ratings add to retirees’ worries.

New York City, New York:

Similar issues are pushing retirees away from New York City, where living costs exceed the national average by a staggering 127%. Annual expenditures of around $83,064 and median rents reaching $3,573 per month, according to BLS and Zillow, are simply unsustainable for many retirees. High crime rates, as highlighted by Niche.com, further discourage retirees seeking safety and affordability.

San Francisco, California:

San Francisco’s steep housing prices and exorbitant cost of living continue to drive retirees elsewhere. The average household spends about $101,880 annually, with housing devouring 40.6% of their budget—well above the national average.

Redfin estimates living costs are 71% higher than average, adding to retirees’ financial burdens. Heightened property crime rates further detract from the city’s appeal.

San Jose, California:

Retirees in San Jose face similar challenges, grappling with inflated housing costs, soaring living expenses, and significant crime rates. With median home prices hitting $1,500,000 and rents averaging $2,900 per month, as reported by Redfin and Zillow, retirees find their finances stretched thin. Niche.com’s “C-” rating for crime underscores safety concerns, particularly related to property crimes.

Seattle, Washington:

Seattle’s allure dims for retirees due to its high cost of living and notable crime rates. Annual expenses nearing $93,905 and median rents around $2,049 per month, according to BLS and Zillow, underscore the financial pressures retirees face.

Redfin notes living costs are 45% above the national average. Niche.com’s poor crime ratings, especially for property offenses, add to retirees’ apprehensions.

Why Retirees Are Seeking New Horizons:

Eliza Arnold from Arnie.co explains that the combination of expensive living, safety worries, and the bustling urban pace has prompted many baby boomers to seek more affordable and secure retirement havens.

Retirees often yearn for a relaxed lifestyle that these cities no longer provide, along with access to quality healthcare and climates that suit their preferences.

Where Retirees Are Eyeing Next:

Retirees are increasingly looking towards destinations like Las Vegas, Phoenix, Tampa, Orlando, and Austin—cities known for their lower living costs, favorable tax environments, and pleasant climates.

Many are opting for active adult communities or retirement villages tailored to seniors, offering amenities and social activities that enrich their retirement years.

Conclusion:

Deciding where to retire involves careful consideration of financial realities, lifestyle desires, and personal needs. Each retiree’s choice is deeply personal, shaped by their unique circumstances and aspirations for a fulfilling retirement.