America's Top Suburbs for Retirees

America's Top Suburbs for Retirees

By William P. Barrett, Forbes.com August 26, 2011

It’s a perpetual question for the older set: Where to retire? A lot of people simply stay put where they’ve been for decades. Others move far away—-even abroad–for adventure or to save money. Another retirement option is a change to an inner-city neighborhood.

But there’s a middle ground that might be appealing to those who have spent comfortable decades in the suburbs, those largely residential towns full of larger homes with back yards within reasonable commuting distance of the big city they generally ring and draw energy from. Consider relocating to another suburb, maybe in another part of the country.

There can be savings and value generated, especially if one takes advantage of what can be the country’s widely differing tax environments. Texas and Florida, for instance, has no state income tax (although other higher taxes make up some of the difference). Some states like Pennsylvania and Florida afford retirees with special tax incentives.

Here’s how our roster came together. First, we set a 25-mile limit for the distance from the suburb to the center of the big city. A longer trip than that struck us as interfering too much with getting to the cultural, sporting and other amenities found in larger cities.

House prices everywhere are way down. We sought towns where the average home price was under $400,000. In nearly half, the price was $200,000 or less. The one exception was Davis, Calif., where home prices are in the mid 400,000’s but plenty of other factors offset this.

Drawing data from such sources as city-data.com, we scrutinized a variety of other factors. They included cost of living and the tax climate for retirees (generally a function of state law). We evaluated availability of hospitals and higher education (it’s never too late to keep learning). We took into account data for crime rates (almost all the towns listed register less than half the national crime rate) and air quality.

Finally, we looked at mass transit options—-especially the proximity of rail–back to the big city.

No single town excelled on every factor. But hey, life is full of trade-offs. We found plenty of interesting places worth your consideration.

Not every suburb we highlight is a tiny burb. From a 1960 population under 4,000, the Dallas suburb of Plano now tops 260,000, one reason for its five hospitals. But average home prices barely nudge $200,000, there’s no state income tax and rail can take you to the big (or bigger) city 18 miles south.

The smallest suburb on the list is Lauderdale, Minn., whose population of 2,200 sits just four miles from Minneapolis. The winters are cold, but homes go for less than $200,000.

Here are 10 of the top suburbs for retirees:

Broomfield, Colorado

Thirteen miles northwest of Denver, this 55,000-person city enjoys easy access to the big city, a nearby hospital and college, low crime and good air quality. Average home price is less than $300,000, although the cost of living is 7% above the national average.

Davis, California

The average home price of $450,000 is the highest on our list. But this Sacramento suburb of 65,000 has a lot going for it anyway. Favorable factors include a local hospital, its own University of California campus and rail links to both Sacramento 15 miles east and the San Francisco Bay area 50 miles southwest. There are good weather and above-average air quality, too.

Brentwood, Missouri

Its population of 7,000 is on the smallish side, but this close-in St. Louis suburb (six miles) has a rail link, low crime, a low cost of living, and a home price average in the mid 200,000’s. Downsides are temperature extremes and below average air quality.

Ft. Thomas, Kentucky

Although in another state, this 15,000-person suburb is so close to Cincinnati--five miles--that buses on their route double-back to Kentucky. Typical homes go for under $200,000. Cost of living is 9% below the national average. There's also a local hospital.

Meridian, Idaho

Eight miles south of Boise, this 70,000-person suburb also has an average home price below $200,000. Other favorable factors include low crime, a hospital, a low cost of living, and Idaho's hospitable tax environment for retirees.

Lauderdale, Minnesota

The winters are cold in this close-in (four miles) Minneapolis suburb of barely 2,000 people. But the town has low crime, an average home price below $200,000, and a nearby hospital and college. One drawback: the cost of living is 15% above the national average.

Allen, Texas

With a median home price of barely $200,000, this northern Dallas suburb of 84,000 has a low cost of living and crime, that favorable Texas tax climate and a local hospital. It sits near rail to downtown Dallas. One drawback: below-average air quality.

See the original article and more top suburbs for retirees at:

http://realestate.yahoo.com/promo/americas-top-suburbs-for-retirees.html