Retirees Are Losing Homes in California — 3 Ways To Secure Housing in Retirement
Written by
Marc Guberti
Edited by
T. Woods
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Rising housing prices have made it more difficult for buyers to enter the market, but it’s also presented challenges for retirees. Higher housing prices elevate property taxes, and for some Californians, another factor is in play.
Various Californian neighborhoods are slowly — and literally — sinking, prompting utility companies to pull back from those neighborhoods. In an X post, David Hermann explains how most of the people affected are retirees.
“Over 130 multi million dollar homes. Nobody will get reimbursed. Most are elderly residents who purchased these homes post WW2. The builders and city neglected the geological nightmare under their feet.”
Hermann goes on to state that the government has been completely absent. Retirees looking to secure housing in retirement should consider following these steps:
Pay Attention to Geography
It’s good to avoid areas where climate can play a substantial role in determining an area’s livability. For instance, the affluent Southern Californian neighborhood has been subject to slight land shifts for several decades, but heavy rainfall has accelerated the shifting over the past two years.
Natural disasters like hurricanes and tornadoes are also worth monitoring, depending on where you live. While natural events are unavoidable, the place you live influences which ones you’ll encounter and their severity.
Downsize
Downsizing is a straightforward way to secure housing in retirement. Your income won’t look the same when you walk away from your jobs, and you’ll need each dollar to stretch a bit more.
Opting for a smaller house won’t only reduce your mortgage, but you’ll also end up with lower utility bills and property taxes. Having fewer monthly expenses will make it easier to maintain your lifestyle instead of having to make drastic changes within a few years.
Move to an Area with a Lower Cost of Living
If you’re going to downsize, you may want to consider moving to a more affordable area. Retirees may not have as much of a need to live near big cities. Opting for rural or suburban areas in a state, providence or country with a lower cost of living can help you stretch your cash further.
This strategy can also help you prevent a downsize. You may end up with a property with the same square feet as your current home while saving a lot of money.
More From GOBankingRates
