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It’s no secret that Miami’s warm weather, cultural cuisines and beautiful beaches make it a great place to hang up the hat for many retirees. If those reasons aren’t attractive enough for retired home buyers, Trulia’s most recent rent vs. buy report makes the decision even easier.
Trulia economists have confirmed that it is significantly cheaper to buy a retirement home than to rent a home in Miami. For retirees, Miami is currently 48.7 percent cheaper to buy than rent and ranks as eighth cheapest metro in the country, with a variety of excellent neighborhoods to choose from.
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South Florida Dominates Purchase Value
At a national level for retirees, buying is cheaper than renting in all major metros by 41.8 percent, and many of the top metros are in Florida, with Miami, Fort Lauderdale and West Palm Beach ranking in the top 10. For all households (retiring or not) who move every seven years and can afford to put 20 percent down, it’s 34.8 percent cheaper to buy — slightly cheaper from 34.2 percent last year.
For retirees that don’t have any children or beneficiaries, or don’t mind passing down equity on a mortgage, renting turns out to be cheaper option. Any equity remaining in the home is passed on to the homeowner’s heirs.
| Where Buying a Retirement Home Beats Renting | ||||
| Rank | U.S. Metro | Median Home Value, Mar 2016 | Median Rent, Mar 2016 | % Cheaper to Buy a Home Than Rent, Mar 2016 |
| 1 | New Orleans, LA | $168,870 | $1,450 | -52.3% |
| 2 | Baton Rouge, LA | $159,362 | $1,350 | -51.3% |
| 3 | Columbia, SC | $121,115 | $1,150 | -51.1% |
| 4 | Detroit, MI | $61,363 | $850 | -50.6% |
| 5 | Fort Lauderdale, FL | $208,049 | $1,750 | -49.7% |
| 6 | Birmingham, AL | $124,897 | $1,100 | -49.1% |
| 7 | Philadelphia, PA | $134,208 | $1,200 | -49.1% |
| 8 | Miami, FL | $249,326 | $1,975 | -48.7% |
| 9 | Memphis, TN-MS-AR | $110,757 | $1,095 | -48.4% |
| 10 | West Palm Beach, FL | $228,703 | $1,850 | -48.1% |
| Note: Negative numbers mean that buying costs less than renting, while positive numbers means buying is more expensive than renting. | ||||
Where to Buy a Retirement Home in Miami?
Not only is real estate affordable for the retired demographic in Miami, it also boasts many neighborhoods that are ideal for retirees. Neighborhoods with a high concentration of 65-plus age group often have quiet streets, convenient amenities for the elderly and many tennis courts and golf courses.
Just north of Miami Beach, Hallandale Beach City boasts an idyllic retirement setting, with an average age of 51 and coming in at 60.4 percent cheaper to buy than rent. Hallandale Beach’s median home sale price is $174,000, and the median rent is $1,850.
The Aventura neighborhood, just next to Hallandale, is also home to many in the 65-plus age group and is 51.1 percent cheaper to buy than rent. Aventura is a bit pricier than Hallandale, with a median sales price of $295,000 and median rent at $2,800.
Of course, there are retirees who aren’t ready to give up their youth and prefer to be near the urban core of Miami. Downtown Miami‘s median sale price is $380,000 and median rent is $2,800, which makes buying 60 percent cheaper than renting.
Whether retirees are looking for the traditional golf course home or a more urban experience, Miami offers terrific retirement neighborhoods and suitable amenities.
Sam Brennan is a writer for Trulia.
