Enclaves in New York and Illinois are home to the most popular 55 years and older retirement communities, according to a new study, and have the greatest value increase.
55Places.com determined that Long Island, New York, Chicago, Illinois, Las Vegas, Nevada, Philadelphia, Pennsylvania, and Central New Jersey are the areas in which active adult communities experienced the highest price appreciation from 2023 to 2024.
While places like Florida, Arizona, and the Carolinas remain popular, “a shift in the preferences of retirees to remain closer to friends and family means that more active adult buyers are seeking homes in northern states,” the report states. “Also, many retirees who flocked south during the pandemic have decided it’s time to return to the places they left.”
There are a wide variety of 55 plus communities, according to experts who weighed in on the trend, and their costs depend on the amenities and services provided by the community.
The more activities and amenities offered to residents, the higher the bill, according to Georgia estate planning attorney Amber Saunders.
“The cost can creep up on you,” Saunders told NTD. “People should be clear on the fees. Costs generally include landscaping, pool maintenance, trash removal, facilities, fitness center, organized activities, social clubs, and sometimes more.”
The study further found that the most affordable areas to buy into an active adult community are in certain parts of Florida, Chicago, Arizona, New Jersey, Texas, and Connecticut.
For example, in southeast Florida, the lowest median sales price is $254,00, in Chicago, it's $353,802, and in Tucson-Green Valley, count on paying $366,350.
“It is worth it if you want a low-maintenance lifestyle,” Saunders said. “They take care of a lot for you so you can enjoy life. If you are on a fixed income though, the cost may outweigh the benefit and if you are a family oriented person and like to have people over for extended periods of time, you may want to reconsider this option.”
That’s because most 55 plush retirement communities, like homeowner association (HOA) subdivisions, have rules and regulations.
The most common rule is that at least one person in the household must be 55 years old or older and anyone 18 years old or younger is often prohibited from living in the community.
“There can also be rules and restrictions for property modifications, how long guests can stay, and even parking,” Saunders added. “If you want to be able to have the grandkids for the summer, you might not be able to. It depends on the extended stay rules for the community. Also, the communities do not provide on-site health or assisted living at all.”
Tennessee-based Certified Financial Planner and ChildFreeTrust.com founder Jay Zigmont recommends Continuing Care Retirement Communities (CCRCs) for retirees who want assisted care, skilled nursing care, or memory care.
“The bonus of buying into a CCRC is that, in many cases, you can lock in your price for life,” Zigmont told NTD. “Many CCRCs offer a fixed monthly price for all levels of care. That means if you ever need skilled nursing support, it is included.”
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.