The Most Expensive Places to Retire in the U.S.

A recent report from WalletHub compared & ranked all 50 states using weighted metrics across affordability, quality of life, and healthcare.

In terms of affordability, specifically, the weighting was impacted by factors like adjusted cost of living, tax friendliness, inheritance tax, cost of health care and more.

Unsurprisingly, the Northeast was prominently featured among the least affordable states, with New York leading the way. One surprise in the rankings was California; despite being home to notoriously expensive cities like Los Angeles and San Francisco, the Golden State came in as "just" the 18th most expensive place to retire.

The Most Expensive Places to Retire

These are the top 10 most expensive places to retire, according to WalletHub's report:

1. New York

2. New Jersey

3. Vermont

4. Massachusetts

5. Maryland

6. Washington

7. Connecticut

8. Maine

9. Illinois

10. Oregon

It's clear to see why so many people have been leaving these areas and looking for more affordable markets (that also happen to have more favorable weather year round). That demographic shift and relative affordability are big reasons why we're focusing on the Sun Belt & other high growth regions in the deal flow for our new Multifamily Fund.

Cost of Living Considerations

The report also looks at how far retirees can go on a $1 million. nest egg. In New York, they project it would last just 14 years, a fraction of how long you'd typically expect retirement to last. Some studies find that, in order to live comfortably in New York City, you'd need $4 million dollars in retirement savings.

Cost of living is just one factor people will consider when deciding where to spend their golden years.

For many people, proximity to family and friends is a big factor when considering a move. Also, if you value the lifestyle these markets offer you may not be able to find a similar feel anywhere else.

The easy accessibility to world class food, culture, sporting events and other amenities in places like Boston and New York would be tough to replicate. Further, the proximity to world class medical facilities is something to consider as you age. Not coincidentally, the most expensive markets tended to score very highly in the quality of life and healthcare categories.

Retirement is different for everyone, of course. The most important thing to determine is what matters most to you in retirement and define your goals. That will help you be prepared emotionally and financially to maintain your desired lifestyle, even if it's in one of the United State's most expensive markets.

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About Ellie Perlman

Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.

Ellie is the host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.