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Homebuying Trends — 55+ Communities

EXPECTED READ TIME: 4 MINUTES

July 9, 2021

As more baby boomers retire, the trends — including location, home designs, and amenities of 55+ communities — are changing to suit their needs. What was popular in the active adult community of a decade ago isn't necessarily what new retirees are looking for now. Read on to discover what's new in modern 55 and over communities.

Location

Although many homebuyers relocate just a few miles away from where they're currently living, that's not the case for all retirees. In 2020, 313,000 people 65 and older relocated out of state. The number one reason was to be near family — kids and grandkids.

In addition to being closer to family, they were also looking to live in an area with a lower cost of living. Florida, Texas, and Tennessee were top destinations because there is no state income tax, and these states offer an affordable cost of living. Besides being close to family and living in a reasonable location, retirees looked for areas with plenty to do, including local attractions, parks, entertainment, shopping, and dining.

Dining

Besides having dinner at the country club, boomers love the convenience of ordering in using delivery companies like Door Dash and UberEATS. No longer is it an issue to cook for one or two, instead just like the younger millennials and generation X — convenience wins out every time.

Ordering in has become especially popular lately since some communities are finding it challenging to hire in-house chefs. And when looking for a new home to spend their retirement years, older homebuyers wanted convenient shopping and a variety of dining options from casual to five-star. Going out with friends for a wine-and-dine is a popular pastime, so convenience and variety were essential.

Customization

Although some of the largest 55+ communities like The Villages have various floorplans and home styles, some of the newest retiring boomers prefer to live in smaller communities compared to mega ones. In addition, they want more home customization. Outdoor spaces are a top request, including complete outdoor kitchens, covered decks, and swimming pools.

Technology and energy efficiency are also popular options — from whole house security to voice-activated lighting, thermostats, and solar.

Wellness Lifestyle

Instead of focusing on medical care, many active 55+ retirees have their attention on wellness. That focus extends into community gardens, eating organic fruits and vegetables, and having enjoyable exercise activities like yoga and Pilates available.

Also, spending time outside and experiencing nature is essential. That's why many 55+ communities are near beach towns in Florida, California, Georgia, North Carolina, and South Carolina.

Top Communities

If you're looking for large, established, tight-knit 55+ communities with incredible amenities, check out these four. They offer mid-priced and luxury homes.

The Villages in Florida has 54,186 homes, according to the US Census Bureau.
Sun City in Sun City, Arizona, has over 27,000 homes.
Sun City West in Sun City, Arizona, has over 17,000 homes.
Laguna Woods Village in Laguna Woods, California, has 12,736 homes.

Top States & Cities Retirees Love

55+ communities are popping up all over the country. Check out these five fast-growing towns retirees are moving to and their median home list price as of June 2021.

Fast-Growing Retirement Towns

Lakeland, FL: Median home list price is $265,000
Traverse City, MI: Median home list price is $329,900
Springfield, MA: Median home list price is $300,050
Coeur d'Alene, ID: Median home list price is $500,000
Wilmington, NC: Median home list price is $580,000

Top Retirement Towns

Here's a list of towns with more than twenty-five active adult communities:

Naples, Florida has 49 communities
Fort Meyers, Florida has 39 communities
Dallas, Texas has 39 communities
Las Vegas, Nevada has 39 communities
Tucson, Arizona has 32 communities
Mesa, Arizona has 28 communities
Sarasota, Florida has 29 communities

As you can see, there are more 55 and over communities in Florida than in any other state. It must be all that beautiful sunshine.

One thing for sure, there are many excellent options if you're looking to relocate to a 55+ community. Happy hunting!

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Disclosures

¹Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 30_YEAR_FIXED_CONFORMING_POINT discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.

^*Prime Rate is RV Prime Rate % as of Boat Prime Effective Date . The APR for this Home Equity Line of Credit (HELOC) is based on prime plus a margin and can change monthly. Fixed Rate Advances will be amortized over the Fixed Rate Advance Term, with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin, and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than 1020 ELOC OO CLTV 70 Rate % for primary residences and second homes.

Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary.
Home equity lines of credit (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis. Closing costs range between $500 and $8,500 for credit lines of $500,000. Contact a representative for additional details.

Appraisals: PenFed will attempt to establish value via an independent method. If that method is unsuccessful, or the value is not sufficient for the amount requested, an appraisal will be required regardless of CLTV. An appraisal is always required in the following circumstances:

For all loans with a loan amount greater than $400,000.

If an appraisal is required, it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $550 to $850 (some run higher).

Closing Cost Credit: PenFed will pay most closing costs associated with a home equity line of credit (HELOC), which includes credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county, and/or state taxes if the subject property is located in FL, LA, MD, MN, NY, TN, or VA. If an appraisal is required, the member, who is responsible for the fee whether or not the loan closes, will pay the cost.

Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Draw Period. During your Draw Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.

Fixed Rate Advances will be amortized over the Fixed Rate Advance Term with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than 1020 ELOC OO CLTV 70 Rate % for primary residences and second homes and 4.75% for investment properties.

Property Insurance: Property insurance is required.

Multiple PenFed Loans: Multiple PenFed Equity loans and HELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and HELOCs the total indebtedness cannot exceed $500,000 for all PenFed Equity and HELOCs combined.

PenFed does not lend on:

Mobile homes
Co-ops or time-shares
Properties that are currently listed on the market for sale
Commercial property or property used for commercial purposes, even if a residence is part of the property
Undeveloped property (land only)
Properties with more than 4 units

Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

Additional limitations may apply

Home Equity Line of Credit:

This Account has a Draw Period of 10 years, followed by a repayment period of 20 years.
If only minimum payments are made during the draw period, the loan balance will not decrease.
In Texas, the maximum CLTV available is 80% on owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
In all other states, the maximum CLTV is 85% on owner occupied properties and second homes. Additional restrictions or requirements may apply based on application characteristics.
Property type of Condo has a maximum CLTV of 80%.
The maximum CLTV available is dependent on credit qualification.
Rates vary depending on owner occupancy and CLTV and other loan criteria.

Minimum Loan Amount Requirements in all States:

For an owner occupied property or second home the minimum loan amount is $25,000 and the maximum amount is $500,000 with a CLTV of 85% or less of the fair market value.

Other terms and conditions apply; call 844-918-4307 to speak with a representative for details. All rates and offers are subject to change without notice. To receive advertised product, you must become a member of PenFed.

Affinity Title

Home Buying Steps

Mortgage Topics

Mortgage Products

Homebuying Trends — 55+ Communities

Location

Dining

Customization

Wellness Lifestyle

Top Communities

Top States & Cities Retirees Love

Fast-Growing Retirement Towns

Top Retirement Towns

Top Four States to Buy Rental Property

Questions to Ask When Buying a Vacation Home

Vacation Homes in Florida

Top Empty Nester Home Designs

Home Buying Steps

Mortgage Topics

Mortgage Products

PenFed HELOC

Disclosures

You are leaving PenFed.org and entering a third party Website that is not a part of Pentagon Federal Credit Union.

You are leaving PenFed.org and entering a third party site. PenFed Realty, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.

You are leaving PenFed.org and entering a third party Website.

You are leaving PenFed.org and entering a third party site. PenFed Title, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.

Location

Dining

Customization

Wellness Lifestyle

Top Communities

Top States & Cities Retirees Love

Fast-Growing Retirement Towns

Top Retirement Towns

SIMILAR ARTICLES

Top Four States to Buy Rental Property

Questions to Ask When Buying a Vacation Home

Vacation Homes in Florida

Top Empty Nester Home Designs

PenFed HELOC

Disclosures

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