Like much of the population during 2020, retirees took the opportunity to pack up and move south. As a result, prices of homes in 55+ communities across the Sunbelt (Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Tennessee, Mississippi, Louisiana, Arkansas, Oklahoma, Texas, New Mexico, Arizona, and part of Nevada and California) shot up while available housing inventory plummeted. But 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.
While most people assume that typical retirement meccas like Florida and Arizona are the hottest markets for retirees, our data is telling a different story. 55places.com, the leading resource for 55+ active adult communities in the country, tracks sales data from over 2,500 active adult communities across the United States.
2024 proved to be a year of many anomalies in the real estate market, but some of the most interesting trends emerged in the 55+ demographic. Active adults are bucking the usual trends of heading south and selecting 55+ communities in northern regions.
To help you better understand these trends, we analyzed over 150,000 home sales between 2023 and 2024 in the communities on 55places.com to get a true picture of what is happening.
Key Takeaways
- 7 of the top 10 highest price appreciation areas in 55+ communities were north of the Sunbelt.
- 14 of the 15 areas that saw the biggest increase in housing inventory of unsold homes were located in the Sunbelt.
- The 5 areas with the highest percentage of homes for sale are all in Florida.
- Florida tops the list with the most affordable homes in 55+ communities.
Long Island and Chicago Are the Hottest 55+ Markets in the Country
When one thinks about the most popular retirement destinations, places like Florida, Arizona, and the Carolinas typically come to mind. While these places 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. Also, many retirees who flocked south during the pandemic have decided it’s time to return to the places they left. As a result, 55+ communities in these regions top the list of the highest appreciating markets in the country.
Regions With the Highest Price Appreciation From 2023 to 2024 in Active Adult Communities:
- Long Island: 10.7%
- Chicago Area: 9.5%
- Las Vegas Area: 9.4%
- Philadelphia Area: 8.1%
- Central New Jersey: 7.9%
- Knoxville Area: 7.7%
- Southeast Florida: 6.8%
- Washington D.C.-Baltimore Area: 6.8%
- Western Connecticut: 6.0%
- Williamsburg Area: 5.9%
Unsold Housing Inventory in 55+ Communities Increased the Most in Florida and Other Southern States
As many retirees elect to stay (or return) closer to their familiar surroundings, 55+ housing inventory in the once-hot markets in the South has increased substantially.
Regions With the Biggest Increase in Housing Inventory of Unsold Homes From 2023 to 2024 Within Active Adult Communities:
- San Diego Area: +82.9%
- Savannah–Hilton Head Area: +79.6%
- Florida Central Gulf Coast (Sarasota/Bradenton/Port Charlotte): +66.1%
- Southeast Florida: +64.6%
- Tucson–Green Valley Area: +63.1%
- Tampa Area: +60.1%
- Fort Myers–Naples Area: +54.8%
- Daytona Beach Area: +51.7%
- Dallas-Fort Worth Area: +48.7%
- Knoxville Area: +44.1%
Most Regions in Florida Are Officially a “Buyer’s Market” for Retirees
When housing inventory increases within a region, it means more options for buyers and more competition among sellers. In real estate, a market is generally considered a “buyer’s market” when the housing inventory is 6 months or more. Months of inventory refers to the theoretical amount of time it would take to sell all of the existing homes for sale on the market in a given location at the current pace of sales in that location.
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 5 regions that have the most homes for sale within active adult communities.
Regions With the Most Amount of Homes for Sale as a Percent of Overall Homes Within Active Adult Communities:
- Florida Central Gulf Coast (Sarasota/Bradenton/Port Charlotte): 2.65% of homes for sale and 6.8 months of inventory at the end of 2024
- Southeast Florida: 2.63% of homes for sale and 12.5 months of inventory at the end of 2024
- Tampa Area: 2.52% of homes for sale and 5 months of inventory at the end of 2024
- Dallas-Fort Worth Area: 2.41% of homes for sale and 5.1 months of inventory at the end of 2024
- Florida Central Atlantic Coast (Port St. Lucie/Melbourne): 2.19% of homes for sale and 8.1 months of inventory at the end of 2024
Northern States Are Still Predominantly a Seller’s Market Within 55+ Communities
Many 55+ communities in northern states had much more limited inventory. Due to substantial demand, many of these regions ended 2024 with less than 3 months of inventory. Higher demand led to more significant price appreciation as potential buyers faced competition to find the perfect home.
Regions With the Least Amount of Homes for Sale as a Percentage of Overall Homes Within Active Adult Communities:
- Western Connecticut: 0.12% of homes for sale
- Chicago Area: 0.46% of homes for sale
- Philadelphia Area: 0.50% of homes for sale
- Long Island: 0.52% of homes for sale
- Boston-Providence Area: 0.58% of homes for sale
Florida Tops the List of Most Affordable Places for 55+ Buyers and Leads the Country in Overall Sales
These regions offer potentially more affordable options for retirees seeking a more budget-friendly community. With more supply on the market, homes will continue to be priced at an accessible level.
Regions With the Lowest Median Sales Prices in Active Adult Communities
- Southeast Florida ($254,485) with an increase of 6.32% YoY
- Tampa ($311,898) with an increase of 1.01% YoY
- Central Florida ($332,142) with an increase of 0.49% YoY
- Chicago ($353,802) with an increase of 10.33% YoY
- Tucson–Green Valley ($366,350) with an increase of 6.21% YoY
- Central New Jersey ($367,788) with an increase of 8.1% YoY
- Houston ($384,065) with a decrease of 2.35% YoY
- Western Connecticut ($384,573) with an increase of 2.55% YoY
- Southern New Jersey ($389,288) with an increase of 5.16% YoY
- Central Atlantic Coast ($405,967) with a decrease of 1.84% YoY
If you have a more expansive budget for a 55+ home, consider searching in one of the following regions with the highest median sales prices:
- San Diego ($724,567)
- Fort Myers–Naples ($651,167)
- Bay Area ($649,994)
- Boston-Providence ($649,815)
- Williamsburg ($635,714)
- Sacramento ($612,194)
- Palm Springs-High Desert ($581,933)
- Savannah–Hilton Head ($579,541)
- Denver ($572,440)
- Raleigh-Durham ($567,936)
Regions With the Highest Average Monthly Sales Volume in Active Adult Communities in 2024
Despite changing trends, 9 of the top 10 selling retirement regions are located within the Sunbelt.
- Phoenix Area (646 homes sold)
- Southeast Florida (574 homes sold)
- Central Florida (571 homes sold)
- Central New Jersey (377 homes sold)
- Tampa Area (331 homes sold)
- Los Angeles–Orange County (293 homes sold)
- Fort Myers–Naples (276 homes sold)
- Florida Central Gulf Coast (227 homes sold)
- Myrtle Beach–Wilmington (219 homes sold)
- Tucson–Green Valley (217 homes sold)
Find Your Perfect Fit for Active Adult Housing
Active adult communities are emerging as a financially attractive option in the current housing market. Ready to explore the possibilities? 55places connects you with specialized real estate experts nationwide to guide you through everything, from selling your current home to finding your perfect fit in an active adult community. Visit 55places.com today and unlock your thriving future!
Methodology
We utilized data from over 70 MLSs looking specifically at sales of homes in 2023 and 2024 within the geographic coordinates of over 2,500 active adult communities on 55places.com. The majority of these communities are age-restricted for residents over the age of 55, as stipulated by the Housing for Older Persons Act. We also include a nominal amount of age-targeted communities, which we define as communities that are predominantly populated by 55 and older residents due to the homes, amenities, and lifestyle catering to a mature population, but they lack a formal age restriction.
Our methodology produces a very comprehensive review, but it does not include transactions that occurred outside of the MLS, which is common for new construction homes purchased from a builder or transactions among friends or family members that do not get listed on the MLS.
FAQ
Below are commonly asked questions about active adult housing.
What Is an Active Adult Community?
An active adult community is an independent residential community designed for people 55 and older. These communities offer a variety of housing options, ranging from single-family homes to apartments. They provide an active lifestyle environment, offering leisure activities and high-quality amenities.
What Amenities Will You Typically Find in Active Adult Communities?
The biggest draw for active adult communities is the array of amenities offered to residents, providing opportunities to stay active and socialize. These often include:
- Fitness centers and gathering spaces
- Golf courses
- Nearby restaurants
- Walking trails
- Organized social activities
- Craft studios
- Transportation services
How Do I Choose the Right Active Adult Community for Me?
When considering if an active adult community is right for you and where to live, you should consider factors like budget, lifestyle, and preferences. Start by deciding on your desired location, whether it’s near the beach or close to other family members.
Then, spend some time researching and visiting communities to get a better idea of what life is like there. Ultimately, the best community should align with your vision of retirement and the lifestyle you wish to live.
