Realtors Predict House Prices Will Skyrocket in These 9 Popular Retirement Towns

When it comes to setting up a financially stable retirement, many retirees choose to move to a new city. Many make the move expecting a lower cost of living to help preserve their nest egg for their golden years. But what happens when popular retirement towns see rising home prices? It could throw a wrench in the retirement plans of many.

Explore several popular towns where real estate agents predict rising home prices are coming soon.

Editor's note: All housing data comes from Zillow, unless otherwise stated.

Average home prices: $603,237

"This area keeps landing on the best places to live list for a reason," says Ryan Smith, real estate investor and founder of Cinch Home Buyers in Cary, North Carolina.

According to Smith, demand is outpacing supply in the area, which will likely lead to rising home prices in the near future.

Average home prices: $486,446

Retirees looking for a lake lifestyle with relatively mild winters have begun to flock to the shores of Lake Norman, including Mooresville, which sits just outside of Charlotte. While the pace might be relaxing, the rising home prices might set the stage for a financially stressful retirement.

According to Smith, "parts of Iredell County around Mooresville have sewer moratoriums that freeze new construction. When you choke off new supply in a place, demand is flowing right now. Prices have nowhere to go but up."

As more people flock to the area, it's likely home prices will climb.

Average home prices: $333,224

"Low taxes, an increasing job market and a mild climate are attracting residents to Greenville from much more expensive cities like Charlotte and Atlanta," says Jonathan Ayala, founder of RealEstatePhotography.com and a licensed real estate agent.

With more newcomers, including retirees seeking an affordable city, home prices might start to rise quickly.

Average home prices: $464,131

"It's a migration, not a boom," says Steve Jolly, real estate broker with Benchmark Realty, LLC.

Jolly shared that retirees are ditching the traditional strategy of retiring in Florida and Arizona. But as retirees transition to new retirement destinations, like Asheville, there simply isn't enough supply to keep up with the rising demand for homes.

Average home prices: $380,283

Although many retirees dream of moving to the Sunshine State, the cost of living in paradise might soon be too steep for most.

"An increase in population and jobs has pushed home prices up across a wide variety of neighborhoods," says Ryan Fitzgerald, owner and broker at Raleigh Realty. "For retirees, insurance costs and taxes are rising as everyone's biggest item in their monthly budget puzzle."

Average home prices: $508,258

In the past, Boise attracted retirees looking for a relatively affordable place to stay in touch with nature. But an influx of newcomers during the pandemic years has reshaped Boise's housing market into a more expensive landscape.

"Formerly value-oriented retirees who saw Boise as an affordable destination are now vying with out-of-state buyers willing to pay even lower prices," says Fitzgerald. "Inventory hasn't completely kept up with demand, leading to a rapid shift in affordability that has surprised many."

Average home prices: $911,179

Most visitors who pass through Sedona fall in love with its beauty. It's not too surprising that many retirees decide to put down roots in this breathtaking desert town. But with a high cost of living that seems to be on the rise, Sedona may soon become unaffordable for retirees.

"Restaurants and grocery stores constantly raise their daily prices to keep up with the labor shortage," says Andrew Fortune, real estate brokerage owner and realtor at Great Colorado Homes. "Service costs will drain retirement accounts very quickly in today's elevated prices."

Average home prices: $858,275

"I don't think Scottsdale will become unaffordable anytime soon, but affordability is decreasing as demand for Western lifestyle markets collides with very limited land for new development," says Blaz Korosec, realtor and founder of Investorade.

Beyond rising home prices, retirees may have to contend with other significant expenses in this town, including climbing electricity and water bills.

Average home prices: $598,419

Retirees are flocking to this charming southern city. But while the live oaks and waterfront streets practically ooze charm, the costs of retiring here can add up. Beyond rising home prices, increasing insurance premiums are pushing up total costs for homeowners.

"All of that starts to add up quickly for retirees seeking walkable communities or waterfront properties, as both premiums and taxes are rising much more quickly than for inland neighborhoods," says Korosec.

If you plan on moving to a new spot in retirement, it's critical to choose a place that suits both your budget and your lifestyle. Although it might be tempting to stretch your budget, locking in relatively high housing costs could be a major financial mistake that derails the rest of your retirement plans.

As you explore your options, make sure to visit your intended destination for more than a week to confirm you could see yourself enjoying your new home for the long term.