Fun in the sun may still appeal to active seniors, but when it comes to buying homes in communities designed for over-55s many are now shunning the Sunbelt. Instead, they are laying down roots in mainly snowy Northern states where prices are appreciating – even as similar communities in some Southern states are seeing home prices drop and inventories rise.
“Nearly 5 years after the pandemic, we’re seeing a different trend emerge. What once was hot is, well, not. The places many retirees fled at the onset of the pandemic are now seeing retirees return in droves,” according to a new analysis by 55places.com, a resource for active adult communities.
The analysis is based on sales data from over 2,500 active adult developments across the United States that were designed as age-restricted and age-targeted communities for residents 55 and older.
The report found that seven of the top 10 regions with the highest price appreciation for such communities were in the North, led by Long Island where prices grew 10.7% and the Chicago area, where prices rose 9.5%.
Others in the top 10 for price appreciation were Las Vegas (9.4%), Philadelphia (8.1%), Central New Jersey (7.9%), Washington, DC/Baltimore (6.8%), Western Connecticut (6%), and Williamsburg (5.9%). The only two Southern metros that made it onto this list were Knoxville (7.7%) and Southeast Florida (6.8%).
These Northern states remain sellers’ markets with limited inventory and rising demand, the report said. It cited Western Connecticut as the prime example of the tight market with an inventory of just 0.12% of homes for sale in age 55+ communities. Other regions with low inventories in this category were Chicago, Philadelphia, Long Island, and Boston-Providence.
In contrast, 14 of the 15 regions with the largest increases in unsold housing inventory were in the Sunbelt. In San Diego supply rose by 83%, in Savannah-Hilton Head by 80%, and in Florida’s Central Gulf by over 65%, the report stated. It said Florida has become a buyers' market with regions like Sarasota, Tampa and the Southeastern part of the state offering over six months of housing inventory. The result is that Florida now leads the nation in affordability with median sales prices averaging $254,485.
“Throughout 2023, most regions of Florida had approximately 3 to 4 months of inventory within 55+ communities. But as the number of unsold homes in Florida grew in 2024, we saw that number shift to over 6 months or more. Florida topped our list of the five regions that have the most homes for sale within active adult communities,” the report said. Other metros in the state with high levels of similar unsold inventory were Fort Myers-Naples and Daytona Beach.
The report does not discuss the extent to which the hurricanes that have torn up the state in recent months may have accelerated the change.
Other metros with sharp spikes in 55+ home supply were Tucson (up 63%), Dallas-Fort Worth (up 48.7%) and Knoxville (up 44%).
However, while the trend has shifted, Florida still tops the list of most affordable places for 55+ buyers and leads the country in overall sales, the report found. And nine of the top 10-selling retirement regions are still located within the Sunbelt. They include Phoenix, Southeast Florida, Central Florida, Central New Jersey, Tampa, Los Angeles-Orange County, Fort Myers-Naples, Florida’s Central Gulf Coast, Myrtle Beach-Wilmington, and Tucson-Green Valley.