Pulse: The South Leads for Best Place to Buy Land and Retire

Last month, the LANDTHINK Pulse posed the following question to our audience: Which state would be your top pick to buy land and retire?

Our informal online survey revealed that most people want to buy land and head South during their golden years. Tennessee and Georgia ranked first and second respectively, followed by North Carolina, Florida, Texas and Alabama. In fact, 43% of our audience selected among these six states as their first choice for retirement. It’s easy to understand the appeal of Southern states. Their sunny locations offer warmer weather, relatively affordable cost of living, and friendly tax environment, as well as plenty of opportunities to hike, golf and swim.

People sometimes say that hard work is its own reward. That may be true for some, but most people like to know that after decades of hard work, they will be rewarded with, well, no longer having to work. We are talking about retirement – that special chance to write the next chapter of your life. But where’s the best place to retire? Type that question into Google, and you’ll find a whole bunch of articles boasting all the top spots for retirees to hang their hats. Deciding where to retire is a highly personal choice, accounting for both lifestyle and financial considerations.

A recent Bankrate survey examined the top priorities for most people when deciding where to retire. Here are the key factors that are top of mind for Americans when it comes to finding the right place for retirement living.

Overall Affordability

Key factors for retirement affordability include the cost of living, which covers housing, utilities, and daily expenses, and taxes, including income, property, and sales tax. Healthcare costs are major considerations as are ongoing expenses like insurance. Some states have a higher cost of living, which can quickly deplete retirement savings, while others are more affordable, allowing your money to stretch further.

Tennessee, which was the top pick for LANDTHINK Pulse respondents, ranked third among states with a lower tax burden. The ranking considers all the taxes in the state, including individual income taxes, corporate taxes, property taxes, general sales taxes, excise taxes, estate or inheritance taxes, and more. Tennessee has NO state income tax and NO estate or inheritance tax. Tennessee is one of the most affordable places to live compared to other Southern states. For instance, it’s cheaper than Florida, which has a higher overall cost of living.

The Volunteer State has a lower cost of living than many other states, though urban cities and resort communities are more costly than other areas. Housing is relatively affordable, with both rent and home values falling under national averages.

Georgia, which ranked second among our LANDTHINK audience, also has a cost of living that is generally lower than the national average. Georgia is known as a tax-friendly state for retirees. Georgia does not tax Social Security, and withdrawals from pensions and retirement accounts are only partially taxed, with generous tax breaks available for the older population.

For retirees that want to buy land for retirement, you can find land for sale in Tennessee and Georgia at various price points. There are dramatic variations in price that reflect location, parcel size, and land characteristics, but Georgia and Tennessee are one of America’s most diverse real estate markets for land buyers. Georgia waterfront counties show premium pricing and land near major metropolitan areas in both states will be more expensive. Whether you’re interested in buying rural land or want real estate closer to the “metropolitan hubs”, there are plenty of options in both states.

When choosing a state for retirement, keep in mind that income tax savings only go so far. Retiring in an income-tax-free state may seem like a no-brainer. However, other taxes, such as property, sales, estate, and/or inheritance taxes, could be higher than those levied by your current state of residence. What’s more, you could face increased costs of living as well as health insurance. So, even if you save on income taxes, you might spend more overall to live in an income-tax-free state.

Climate/Weather

When envisioning retirement, many dream of sunny skies and mild winters. States offering year-round sunny weather often top the list for retirees seeking a warm climate. The appeal of these locations isn’t just about avoiding shoveling snow and having to scrape your windshield, it also includes the health benefits associated with living in a milder climate, such as reduced joint pain and improved mood. However, weather preferences are subjective. While some retirees might relish the idea of never seeing snow again, others may look forward to a four-season climate like Tennessee and North Carolina, and the recreational opportunities they bring. The weather can vary significantly depending on the region.

Overall, Tennessee provides a pleasant climate with beautiful fall foliage and mild winters. Georgia’s weather and climate is an appealing place for many to buy land and move.

Safety and Community

Safety as a factor in retirement planning involves assessing both general and specific risks, including local crime rates, the quality and responsiveness of emergency services, and environmental hazards like extreme weather or climate change impacts. Safety and security are paramount when choosing a retirement destination. Research the crime rates and overall safety of potential locations to ensure that you feel comfortable and secure. In addition to general safety, consider the availability of emergency services, such as police, fire departments, and ambulance services. Living in an area with responsive emergency services provides the peace of mind that you’ll receive prompt assistance in an emergency.

Additionally, consider the frequency of natural disasters such as hurricanes, floods, or wildfires. Safety from natural disasters and strong community factors are critical considerations for retirement planning, particularly for older adults who may face increased health and mobility vulnerabilities. A supportive and prepared community significantly boosts resilience and recovery chances. Research potential retirement locations to understand the specific natural disaster risks such as hurricanes, wildfires, floods, and earthquakes, but almost everywhere has potential risks and burdens related to natural disasters.

Choosing a state to settle down in is a significant decision, and it requires some serious contemplation. From the cost of living to climate, to land prices and healthcare accessibility, there are crucial factors to consider. The ideal retirement state balances financial benefits with quality of life factors that matter most to you.

Do you have a suggestion for next month’s Pulse question? Submit your question and we might choose yours!