5 Cities Better to Own for Retirees than to Rent

For many retirees, owning a home provides not just a sense of stability and permanence but can also be a sound financial strategy, particularly in cities where the cost of renting is high and property values are expected to appreciate. Here are five cities where buying a home could be a better option for retirees than renting:

• Why Own: Clearwater offers retirees not only a beautiful coastal setting but also favorable tax conditions with no state income tax. Property values in Clearwater have been appreciating steadily, making home ownership a good investment. The cost of renting can be relatively high, so owning a home here can help stabilize living expenses as property taxes and homeownership costs are relatively low compared to the national average.
• Average Home Price: $374,143
• Average Rent Price: $1,790 (average expected to increase this year)

• Why Own: Greensboro provides a compelling option for retirees due to its affordable cost of living and reasonable property prices. The city offers a mix of urban conveniences and suburban comfort, with plenty of green spaces and community activities tailored to seniors. Owning a home here can be significantly cheaper than renting, especially when considering the long-term benefits of equity growth. Additionally, North Carolina’s property tax rates are relatively modest, which helps keep homeownership costs manageable for retirees. Though the rent is cheap, the home prices are cheap too, and keeping in mind taxes and the popularity of this city with retirees, owning is much smarter here.
• Average Home Price: $255,891
• Average Rent Price: $1,262

• Why Own: This city has been gaining popularity due to its vibrant arts scene and excellent healthcare facilities, crucial for retirees. The cost of living in Grand Rapids is lower than the national average, and with rental prices on the rise, owning a home can lock in housing costs and offer long-term financial benefits through home equity.
• Average Home Price: $276,947
• Average Rent Price: $1,389 

• Why Own: Knoxville offers a cost-effective living environment with a low property tax rate and no state income tax, which is particularly beneficial for retirees on a fixed income. The real estate market here is reasonably priced, making it more affordable to buy than rent, especially considering potential long-term appreciation and stability.
• Average Home Price: $350,151
• Average Rent Price: $1,736

• Why Own: Known for its rich history and cultural vibrancy, San Antonio also boasts a retiree-friendly tax structure, with no state income tax and relatively low property tax rates. The housing market is still accessible to buyers, and owning a home can be less costly than renting, providing retirees with a financially prudent option that enhances their ability to manage retirement savings effectively.
• Average Home Price: $257,711
• Average Rent Price: $1,278

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.