This article looks at 15 cheap places to retire near the beach. If you wish to skip our detailed analysis on the baby boomer home-buying boom, go to 5 Cheap Places to Retire Near the Beach.
The Baby Boomer Home-Buying Boom
According to the latest study from the National Association of Realtors (NAR), baby boomers are now the largest generation of home buyers in the USA. The Home Buyers and Sellers Generational Trends report by NAR reveals that between July 2021 and July 2022, 39% of surveyed home buyer respondents were baby boomers. Meanwhile, Millennials were 28%; and Generation X was 24%.
Several reasons hold for this generational cohort buying the most homes. For starters, when individuals retire, they wish to be closer to friends and family. They are also drawn to newer, smaller homes. 18% of home buyers aged between 68 to 76 also revealed purchasing a multigenerational home. As of 2022, Baby Boomers have had the highest amount of generational wealth at $73 trillion, so buying the most homes isn’t a surprise at all.
While baby boomers dominate home purchases, the broader trend in home buying is on the decline. According to Fortune, mortgage rates have hit a multi-decade high at 7.49%, and the average American could need a raise as high as 55%, or at least a 35% correction in home prices, to afford a home. Due to the high mortgage rates, residential real estate deals have been falling through as well. Redfin Corporation (NASDAQ:RDFN) notes that nearly 60,000 deals fell through as of August 2023, which equals 15.7% of the contracts in that month.
“I’ve seen more homebuyers cancel deals in the last six months than I’ve seen at any point during my 24 years of working in real estate. They’re getting cold feet.”
While Redfin Corporation (NASDAQ:RDFN) may be sounding the alarm about a surge in canceled real estate deals, Zillow Group, Inc. (NASDAQ:Z), a tech-based real estate marketplace, sees the current market as the right time to make a purchase.
"For determined buyers, with enough budget room to accommodate the recent jump in mortgage rates, this fall is looking more and more like a sweet spot: There are more motivated sellers and more active listings overall than any time since last December, improving buyers' chance to find the right fit."
Tucker also notes that home buyers should remain cautious, given the rise in mortgage payments. Due to a surge in home prices, the typical mortgage payments as of August 2023 has reached $1,896. Moreover, the US housing market has surged by 50% from January 2020 to $52 trillion as of today.
Beach Housing
Retirees love to live near the beach for reasons more than one. Serene coastlines, a tranquil environment, and stunning sunsets provide them with a sense of relaxation. The warm climate is particularly appealing to them, especially if they have been living in colder climates all through their lives. Plus, there are lots of activities to enjoy, such as fishing, swimming, or simply taking a stroll on the beach.
Costa Rica, Panama, Portugal, and Mexico offer some of the best beaches to retire in the world. For the retiree who is looking for an affordable beach lifestyle, some of the most affordable beach towns to retire in the world are Playa Tamarindo and Manuel Antonio in Costa Rica, Bocas del Toro in Panama, and Santa Marta in Colombia.
However, popular beach areas are not getting any cheaper. For instance, the tri-county area of Miami-Dade, Broward, and Palm Beach is one of the most overvalued housing markets in the USA. Currently, home buyers are paying a 39% premium for properties in these areas. Moreover, Southeast Florida has been declared the 11th most overvalued area in the country. Homes in Newport Beach, one of the popular beach towns in the country, are up by 13% as of August 2023. Meanwhile, prices in Long Beach, California have been demonstrating an upward trend as well, up by 1.9% since last year.
For many retirees, it is better to opt for a retirement community rather than shift to a new home. As such, retirees can check out some of the most affordable beach retirement communities across the USA. Some prominent names include Sea Breeze at Lacey in New Jersey, Lely Resort in Naples, and Sugar Sands in Riviera Beach Florida, amongst others.
For those retirees looking for more scoop on an affordable retirement near the beach, we have developed an entire list of cheap places to retire near the beach.
15 Cheap Places to Retire Near the Beach
Methodology
To compile the list of 15cheap places to retire near the beach, we have used the real estate report from Property Shark that lists all affordable beach towns. Next, we ranked them based on their costs of living index and their median sales prices as of August 2023. The cost of living index has been sourced from Best Places and Numbeo, while median sale prices are from Redfin Corporation (NASDAQ:RDFN) and Zillow Group, Inc. (NASDAQ:Z). Additional points were awarded if any place appeared on our list of best beach towns for retirement.
After individually ranking them on each factor, the sums were totaled. Places were ranked based on their total scores in ascending order from the lowest to the highest scores.
Here are the 15 cheap places to retire near the beach in the USA:
15. Pass Christian, Mississippi
Insider Monkey Score: 15
Mississippi is one of the best states to retire for cost of living and taxes, and Pass Christian is no exception to it. The median sale price of a home in the city is $345,000, while the cost of living in Pass Christian is 17.4% lower than the US average. The Gulf Coast boasts a moderate climate to enjoy the beach all year long and overall, the city is a cheap place to retire near the beach.
14. Springfield, Florida
Insider Monkey Score: 16
Springfield, a small city located in the Panhandle region, is another affordable beach retirement destination in the USA. It is located on the Gulf Coast of Florida, providing retirees with easy access to pristine beaches and numerous water-based activities. The median sale price of a home in Springfield, Florida is $235,000. Even though the cost of living in Florida is 2% higher than the US average, the cost of living in Springfield is 4.6% lower.
13. Bon Secour, Alabama
Insider Monkey Score: 17
Located near the Gulf of Mexico, Bon Secour offers retirees with pristine white sandy beaches and warm waters. The area, along with the surrounding areas of Gulf Shores and Foley, boasts a low cost of living as compared to the state. The pace of life is slow, and retirees can enjoy a peaceful lifestyle here. The median sale price of a home in Bon Secour is $325,000. The cost of living in the city is 5% lower than the US average.
12. Laguna Heights, Texas
Insider Monkey Score: 18
The bayside community of Laguna Heights is a cheap place to retire near the beach. The median sale price of a home here is $264,000., while the cost of living in Laguna Heights is 25% lower than the US average. Laguna Beach, in particular, is revered for its breathtaking views, mild climate, and beautiful beaches such as Main Beach, Thousand Steps Beach, and also the Crystal Cove State Park. The city also features several medical facilities.
11. Ocean Springs, Mississippi
Insider Monkey Score: 18
Another cheap place to retire near the beach in Mississippi is Ocean Springs. Beautiful beaches of the Mississippi Gulf Coast allow retirees to enjoy a beach lifestyle without the high prices. Owing to the Gulf Coast region, the climate remains mild throughout the year, offering various outdoor activities to enjoy. The median sale price of a home in Ocean Springs is $325,000; while the cost of living in the city is 16.5% lower than the US average.
10. Corpus Christi, Texas
Insider Monkey Score: 20
Affordable coastal living, access to Gulf of Mexico beaches, and a thriving cultural scene make Corpus Christi a popular beach retirement destination. The year-round climate is mild, with plenty of outdoor recreational opportunities to enjoy such as boating, kayaking, and windsurfing. The median sale price of a home in Corpus Christi is $252,000; while the cost of living in the city is 16.5% lower than the US average.
9. Long Beach, Mississippi
Insider Monkey Score: 21
Long Beach, Mississippi is one of the most affordable beach towns to retire in the world. Owing to its affordability, natural beauty, and cultural richness, many retirees are drawn to it. The median sale price of a home in Long Beach is $283,342; while the cost of living is 17.4% lower than the US average. There are medical facilities and hospitals available too, and a range of services and amenities.
8. Biloxi, Mississippi
Insider Monkey Score: 21.5
Biloxi Beach is another one of the best beach towns in the state of Mississippi. From beaches and water sports to casinos and cultural events, the city is a full entertainment package for retirees. The median sale price of a home in Biloxi is $279,000. Biloxi Beach is even more appealing because of its climate, with average summer highs in the 80s or 90s (°F). There is an active senior community as well, and several healthcare facilities and hospitals.
7. Freeport, Texas
Insider Monkey Score: 24.5
Another cheap retirement destination near the beach is Freeport in Texas. Freeport has a lower cost of living as compared to other areas in Texas. Housing options are affordable too. The median sale price of a home in Freeport is $142,315. The cost of living in the city is 0.7% lower than the US average, making it affordable to live both in terms of housing affordability and living expenses.
6. Port Arthur, Texas
Insider Monkey Score: 25.5
Another one of the best small beach towns to retire is Port Arthur, Texas. Celebrating more than a hundred years as a Gulf Coast city, it offers a coastal lifestyle and easy access to the beach. Swimming, sunbathing, and fishing are some of the many activities that retirees can enjoy here. Housing is also affordable. The median sale price of a home in Port Arthur is $126,000; while the cost of living in the city is 22% lower than the US average.
