Pennsylvania dethroned Florida as the leading retirement state, with the city of Lancaster topping the list of best places to settle.
A new US News & World Report poll found that Lancaster, 80 miles west of Philadelphia and home to the nation’s oldest Amish community, is the most desirable city for retirees concerned about affordable housing and quality of life.
The six main factors considered for the survey include happiness, quality of healthcare, retiree taxes, desirability, and labor market ratings.
While satisfaction was the key factor in last year’s report, US News noted that inflation, which remains persistently high at 8.2 percent, rising mortgage rates and concerns about the economy made a notable shift in this year’s survey.
“The drastic shift in the housing market, high inflation and fears of an imminent recession are prompting retirees to place greater emphasis on housing affordability when considering where to retire,” said Emily Brandon, senior editor for the retired from US News, in a statement.
Inflation is raging, and the economy as a whole has become the top concern for half of American voters just a week before the 2022 midterm elections.
Lancaster, Pennsylvania topped the usual Florida getaways in US News & World Report’s list of the 150 Best Places to Retire
Lancaster (above) has ranked high for quality and affordability of healthcare, with homes for sale well below the national median list price
Inflation remains persistently high at 8.2 percent, with core inflation, which excludes volatile food and energy costs, rising to a 40-year high
The Lancaster Amish
Lancaster County, Pennsylvania is home to America’s oldest Amish community.
There are more than 25 different Amish, Mennonite and Brethren groups in Lancaster, all referred to as “plain people” who prioritize family, faith and farmland.
The more traditional group called “Old Amish” do not allow electricity or telephones in their homes.
The county’s Amish population is estimated at 38,095.
The men in the community focus on farming or furniture crafts, while the women make handmade quilts.
Several communities open to visitors and tourists, but photographing people may be prohibited due to an interpretation of the Bible that says “carved images” are forbidden.
Lancaster, which has a population of approximately 58,000, is home to America’s oldest Amish community and offers several tours and buggy rides in the area.
The city also offers its own amusement park, daily hot air balloon rides, historical sites, and the Mountain Retreat and Adventure Center.
Affordability allowed Lancaster to take first place, with the city’s median house price standing at $285,000, a sharp drop from the US median price of nearly $455,000 recorded last month.
It’s an attractive option for those living on a fixed income, as mortgage rates topped 7 percent last week.
“As long as both rates and house prices are high, indices related to things like satisfaction or the quality of healthcare, while important, will take a backseat to affordability,” said real estate economist Patrick Duffy.
In the US News poll, the city scored an above-average 6.4 for affordability and a whopping 8.3 for quality of healthcare.
Pennsylvania eventually occupied half of the top ten spots on US News & World Report’s list, with Harrisburg coming in second, York fifth, Allentown ninth, and Reading tenth.
Florida’s Pensacola, Tampa, Naples and Daytona Beach finished third, fourth, sixth and seventh, respectively, with Michigan’s Ann Arbor finishing eighth.
While Pennsylvania seems to be the best retirement retreat, California cities rank among the top five least desirable cities to settle in.
San Jose was at the bottom of the list at number 150, followed by Santa Rosa, Stockton, Vallejo and Fairfield, and San Francisco.
Lancaster County is home to America’s oldest Amish community. Pictured: A group of Amish residents using a horse-drawn buggy to get around the country roads
Visiting Amish farmland is one of the top things to do in Lancaster
The median contract rate for a 30-year fixed rate mortgage rose to 7.16% in the week ended October 21, from 6.94% in the previous week
Concerns about retirement finances have increased this year as Americans anticipate they will need to significantly increase their retirement savings.
According to a survey released Tuesday by Northwestern Mutual, US adults now expect to need $1.25 million to retire comfortably, a 20 percent increase from last year.
But at the same time, the average American’s retirement savings have fallen 11 percent to $86,869, compared with $98,800 last year.
The expected retirement age has risen to 64 from 62.6 last year, suggesting Americans believe they need to work more years to have enough money to retire.
“For many people, this is a time of uncertainty, driven primarily by rising inflation and market volatility,” said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual.
“We’ve also seen spending increase year over year, not only because of inflation, but also because people have found a sense of normality in their lives again after the earlier days of the pandemic,” he added.
“These factors are causing many people to rethink how much they need for retirement and how long it will take them to get there.”
The average American’s retirement savings fell 11% to $86,869 compared to $98,800 last year
On average, adults in the US now expect to need $1.25 million to retire comfortably, a 20% increase from last year — albeit more than half
Not only has San Francisco been named as one of the worst places to retire in the nation, but it is also a leader in recent urban migration due to the high cost of living and rampant crime.
A new Redfin migration report shows that about 9,072 San Francisco homebuyers are looking to relocate to either Sacramento, California, or Seattle.
Because of high mortgage rates, Chen Zhao, head of Redfin Economics Research, said many Americans are looking for homes with inflation and recession on their minds.
“With a looming recession and high household spending, many people cannot afford to buy a home in an expensive area and/or want to save money in an emergency, making moving somewhere more affordable an attractive option,” Zhao said.
The San Francisco Exodus serves as a key example, where the average home price in the Golden City is currently $1.5 million, while Sacramento enjoys an average home price of $560,000.
Sacramento real estate agent Samantha Rahman said the city’s popularity is evident as more than half of her clients are from out of town.
“These are mostly remote Bay Area workers who may have to commute to the office a few times a month but save significantly on housing costs,” Rahman noted.
“It makes even more sense to move to a cheaper area now than it did when mortgage rates were low, because cheaper houses offset some of the cost of high interest rates and yield less interest.”
Major crimes in San Francisco are up 7.4 percent this year from the same period in 2021 so far
Along with the high cost of living, rising crime has tarnished the image of the Golden City, which has snapped back into the national limelight after the attack on Paul Pelosi, husband of US House Speaker Nancy Pelosi, in their $6 million home.
Major crimes in San Francisco are up 7.4 percent this year from the same period in 2021 so far, assault up 11.1 percent and robbery up 5.2 percent.
Amid the misery on the city’s streets, where drug use is outrageous and homelessness is rampant, a recent poll found that a majority of San Franciscos believe their city is going downhill and a third plan to see the city within three years to leave.
Some residents blame Mayor London Breed, whose previous popularity for navigating the city through the pandemic appears to have waned amid rising crime, the fentanyl epidemic and other woes.
Residents also ousted progressive prosecutor Chesa Boudin in a snap election after community outrage at his perceived soft policies.