RealtyTrac Lists Best Retirement Communities To Invest In

Dunnellon, Fla., tops RealtyTrac's list of the 15 best retirement communities to invest in for 2013, based on price appreciation and capitalization rates.

The list only considers communities where at least one-third of the population is retirement age or older. Other factors include the percentage of the population that is retirement age, average temperature and cost of living.

‘These markets will very likely be an area of growth in the housing market over the next 15 years as baby boomers retire in greater numbers,’ said Darren Blomquist, vice president of RealtyTrac. ‘The baby boomer generation started retiring in 2011, a trend that will continue through 2029.’

The report also offers 10 tips on investing in real estate using retirement accounts like IRAs or even 401ks.

Home prices in Dunnellon have shot up more than 31% in the past year, according to the report, yet the median sales price for May was $76,941. About 38% of the community is retirement age or older, and the average temperature is 70 degrees. The capitalization rate for the community was 10.34%, while the cost of living index was 102.

In second place is Naples, Fla., where home prices have increased almost 27% in the past year. The median home price there was $267,473 as of May. About 44% of the community is retirement age or older, and the average temperature is 74 degrees. The capitalization rate was 3.84%, and the cost of living index came in at 160.

RealtyTrac only included cities with a population of more than 10,000. RealtyTrac further limited the list to cities with a positive capitalization rate (net annual income as a percentage of the purchase price) using average rents on three-bedroom homes and the median sales price in May.


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