In a surprising turn of events, Iowa has jumped ahead in 2023 to claim the position of the finest state to retire in, according to a recent study by Bankrate. Yes, this heartland state, often associated with endless fields of corn, is now at the top of the leaderboard, trumping previous high-ranker, Florida.
What catapulted Iowa to the top spot? Well, the clue lies in two factors – housing affordability and economic sustainability over time. As of July 2023, the national median home price sits steadily at $422,137, yet Iowa shatters this median, coming in at a comfortable $232,200, as documented by Redfin’s data.
It turns out, for most retirees, this is more than just a statistic – it’s an opportunity. Retirement often means a fixed income, less earning potential, and tighter budgets. Iowa’s accessible property market means dollars can stretch further, offering retirees a bit more breathing room in their finances. In fact, this economic attractiveness accounts for a whopping 40% of what makes a state desirable for retirement according to Bankrate’s weightage.
But the allure of Iowa goes roads beyond monetary considerations. Sure, affordability matters, but retirees are also seeking sustainable living conditions. As Larry Sprung, a financial advisor, and founder of Mitlin Financial, emphasizes to Bankrate, “You have to make a decision not only about the way things look today, but whether a place is going to be sustainable and less expensive over the long term.”
Translation? Iowa isn’t just an affordable place to park your nest egg today; it is seen as a viable place to live an economically feasible retired life for tomorrow as well.
Looking at Iowa’s competition, one can see why the state’s retirement crown is well earned. 2022’s top state, Florida, slipped to the 8th spot, this year. Sure, it offers perpetual sunshine and beach vibes but the median home sale price hovers around $409,100 – nearly twice that of Iowa’s.
Contrastingly, the runner-up for 2023’s best state to retire, Delaware, ranked 31st in Bankrate’s affordability listing. Despite its commendable health care system and lighter tax burdens, the pinch of high living costs may deter potential retirees.
Choosing a retirement destination is a deeply personal decision. Affordability, quality healthcare, well-being, weather and crime levels are perhaps the five key factors Bankrate used to rank potential retirement states. Each carries a different weightage in the scale of importance, but it boils down to what aesthetic you are after and how well it can provide for your retired years.
In an age of rocketing home prices and fluctuating markets, Iowa’s economic stability and reasonable living costs rather than an Atlantic beachfront or balmy weather spells tranquility for retirees. For savvy retirees benchmarking their sunset years, this midwestern region thus emerges a clear winner. Take notes, future retirees. In 2023, it may be cornfields over coastline.
