Cities have become a draw lately for baby boomers entering their retirement years, but this cohort is also looking to college towns for active environments and lower mortgages, Fox Business reports.
Plus, “many want to downsize and trade in their home and yard for a condo or townhouse,” Fox writes.
Pied-a-terre, which means “foot on the ground” in French, is typically a small or undersized apartment capable of doubling as a retirement location. And as cities have become safer, boomers have been lured back to metropolitan areas largely because of their entertainment attractions, but also because they can walk their neighborhood and enjoy public transportation.
Contrary to what popular perceptions might be about the lure of urban environments for millennials (ages 20-34), U.S. Census Bureau data released in the summer on 2013 population growth reveals more baby boomers (ages 50-69) are flocking to cities instead of suburban locales.
Many of them are opting for a less traditional retirement setting — away from the coasts — in a quest for cheaper housing. This has drawn middle class retirees to pick up and move to fast-growing housing destinations, where they can enjoy lower mortgage payments or rental rates.
Urban areas such as Raleigh-Durham, N.C., Austin, Texas, and Provo, Utah are among these fast-growing cities.
However, the aging population is also narrowing its focus on college towns for the lower costs of living and the activities offered near university campuses.
Buying a condo or townhouse in a college town provides low prices and high benefits for retirees. Home prices are typically near the median national average price of $212,400 or below and real estate taxes tend to be low, Fox writes.
Many colleges also allow seniors to audit courses at no or low cost and attend college sporting events at bargain prices.
“More and more boomers are opting to retire in cities and college towns where they can have access to museums, free classes, restaurants and a faster pace of living,” the article states.
With 8,000 boomers retiring every day over the next 15 years, their decisions are poised to reshape the second home market.
Read the full Fox Business article here.
Written by Emily Study