News & Trending Mortgage & Loans News

Realtors Predict Rent Prices Will Skyrocket in These 10 Popular Retirement Towns

You’ll want to get in on these popular towns before prices go up.

By Andy Lindquist

Edited by Lauren Wellbank

Updated March 7, 2025

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.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Boise, Idaho

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.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Richmond, Virginia

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

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.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Durango, Colorado

town of durango in southwestern colorado

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

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

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.”

Grow Your $$: 11 brilliant ways to build wealth after 40

Fort Myers, Florida

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

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

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.

Earn up to a $300 bonus and grow your money with up to 3.80% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. See full bonus and annual percentage yield (APY) terms at <a href="http://www.sofi.com/banking#1">sofi.com/banking#1</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Jan. 24, 2025. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account fees⁵ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> or overdraft fees⁶ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>. Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

Open your SoFi account and set up direct deposit

Honolulu, Hawaii

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

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.

More from FinanceBuzz:

Invest in Paintings by Basquiat, Picasso, Banksy

Masterworks Benefits

Invest in art like a millionaire for a relatively low cost
Art investments have outperformed the S&P 500 by over 131% for 26 years
Purchase shares of artwork by top artists
Hedge against inflation and diversify your portfolio

Visit Masterworks