The United States is currently one of the most overheated property markets in the world. Low interest rates, stimulus check savings, and limited housing supply are working together to buoy property prices across the country. Values are up 15% on average over the last year, and it has become harder today to find an affordable home in the United States than it was at any point during the 2008 financial crisis.
If you’re looking to relocate within the United States for a better quality of life in retirement, the options are limited. Prices in the traditional go-to spots of California, Florida, Arizona, and the Carolinas are increasingly out of reach.
However, you do not have to give up on the retirement lifestyle of your dreams. You have many good options for retiring well beyond U.S. borders, where the alternatives are not only appealing but far more affordable than comparable locations in the United States.
Specifically, in the top retire-overseas markets on our radar, you can save 50% to 80% (and more) off what you’d pay in the top U.S. retirement spots. Here are six top options:
Texas Vs. Colombia
Medellin, Colombia
For three years running, U.S. News and World Report ranked Austin, Texas, the top choice for city living in the United States.
Austin is famous for its live music scene, and, in recent years, it has emerged as a smart, innovative city. Other attractions for retirees include its wide outdoor spaces and arts scene.
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If this is the kind of lifestyle you’re after, we’d suggest you also take a look at Medellín, Colombia—a city that’s transformed itself over the past two decades and continues to push forward. In 2013, Medellín was named “Most Innovative City” in the world. Popular among expats for its springlike weather year-round, it offers a healthy lifestyle with plenty of green space and the opportunity to spend more time outdoors. With dozens of museums and art galleries, botanical gardens, and a literary scene, Medellín is one of the most culturally appealing cities you’ll find south of the border.
Cost to own in Austin, Texas: Over the past year, homes in Austin have risen by an average 35%. Average per-square-meter price in downtown Austin is $8,300. A two-bedroom, two-bath condo of 140 square meters in a nice location, close to bars, restaurants, shopping, and parks, costs on average $565,000.
Cost to own in Medellín, Colombia: The most attractive area for U.S. buyers is the upscale neighborhood of El Poblado. Here, prices are an average $1,700 for existing property, $2,000+ for new-builds. In El Poblado, you could own a high-end, two-bedroom, two-bath penthouse close to restaurants, parks, shopping, movie theaters, and the business district for 750 million Colombian pesos. Right now, that’s $187,500.
Florida Vs. Brazil
Canoa Quebrada, Brazil
Not surprisingly, Florida dominates Conde Nast’s “10 Best Places to Retire in the U.S.” Its beach towns take four spots, including the top two. Top of the list is Fort Myers, offering the best of Florida’s beachside lifestyle without the crowds. Sarasota takes second place. This town offers a top beach lifestyle with lower property prices than in Tampa or Naples.
If you’re a beach lover, there’s little compromise in swapping Florida’s sunny coast for the world-class sands of northeastern Brazil. The standout city along this northeast coast is Fortaleza. Along with its surrounding beach destinations, Fortaleza is a major draw for foreign real estate investors. It’s also a hub for Brazilians, Europeans, and North Americans seeking a second home, drawn by the area’s fine sandy beaches, great weather, and rich lifestyle.
For better value—and the opportunity for uncrowded beaches with little to no high rises—look to the stretch of coast 90 minutes south of Fortaleza, around the popular resort of Canoa Quebrada. That’s where prices get exciting.
Cost to own in Sarasota, Florida: The average price for downtown Sarasota is $4,000 a square meter. Prices get higher the closer you get to the sand. In a small development, a half-block back from the beach, a 42-square-meter costs $325,000.
Cost to own in Northeast Brazil: Near the resort of Canoa Quebrada, you can own a one-bedroom villa just steps from a white-sand beach—with its own plunge pool and private terrace—for just $57,000. Cash buyers pay just $47,000.
Hawaii Vs. Northern Cyprus
A beach at Karpasia, Northern Cyprus
If you’re drawn to island living, Hawaii is a natural starting point. In Bankrate’s recent ranking of the 50 states (based on factors important to retirees like affordability and weather), Hawaii came in 10th.
Maui is a top choice with retirees for its beaches and opportunity for diving, snorkeling, and surfing.
Looking beyond U.S. borders, you’ll find all of the above on the Mediterranean shores of Northern Cyprus. In this former British Colony, English is widely spoken, the weather is warm year-round, and property prices are a fraction what you’d find elsewhere in the Med. This area has a rich culture and a growing expat community.
Cost to own in Maui, Hawaii: The average per-square-meter price in Maui is around $7,600. Right now in Ma’alaea Bay, you can buy a one-bedroom, 52-square-meter condo on the beach for $385,000.
Cost to own in Northern Cyprus: Average per-square-meter price in Northern Cyprus is around $1,300, and upward of $1,500 for beachfront. In a new beach development, you could buy a one-bedroom apartment with a terrace and ocean views for less than $100,000.
Arizona Vs. Panama
Boquete, Panama
For retirees looking for an active outdoor lifestyle, it’s hard to beat the cities of Scottsdale and Prescott, Arizona. Those seeking better affordability tend to settle in Prescott. Unlike other parts of Arizona, Prescott offers mild weather and the opportunity to be out of doors all year.
The combination of its stunning natural setting, temperate climate, and large expat contingent makes the mountain town of Boquete a natural choice for those contemplating an outdoor lifestyle. Here you’ll find a range of activities from zip-lining and white-water rafting to golf and hiking up Volcan Barú.
The town is not short on culture either. Each February, local and international artists come to Boquete for its annual jazz and blues festival.
Cost to own in Prescott, Arizona: Average price in Prescott is $3,324 per square meter. Close to downtown but set in tranquil woodland, a three-bedroom home costs $950,000.
Cost to own in Boquete, Panama: Average prices in downtown Boquete are around $1,400 per square meter. In Alto Boquete (just five minutes from town), a luxury, contemporary three-bedroom home is $300,000.
South Carolina Vs. Portugal
Porto, Portugal
South Carolina is a popular choice among U.S. retirees—not only for its beaches but also for its historic charm. The port city of Charleston oozes elegance with its cobblestone streets, horse-drawn carriages, and sophisticated French quarter.
Across the pond, the city of Porto (Portugal’s second city) is the perfect rival. Globally known for its exquisite port wine, the city is surrounded by the enchanting Douro Valley. The valley itself is a UNESCO World Heritage Site and was the world’s first demarcated wine-producing region. In Porto’s older neighborhoods, you’ll find rows of colorful houses, crisscrossed by tiny cobblestone alleyways that are home to cozy cafés, restaurants, and bars.
One of the best lifestyle neighborhoods to consider—that still offers affordability—is Cedofeita… a quiet area that’s close to amenities and has strong public transport connections.
Cost to own in Charleston, South Carolina: Average price per square meter in downtown Charleston is $5,600. A 98-square-meter condo in a historic building is on the market here for $575,000.
Cost to own in Porto, Portugal: Average per-square-meter price in Porto today is 2,800 euros ($3,300). In Cedofeita, a renovated 100-square-meter apartment with a garden is 220,000 euros. That’s $260,000.
California Vs. Mexico
Mazatlan, Mexico.
For ocean lovers, it’s hard to beat the crash of the Pacific. Fortunately, those same great wide beaches and surf that California is famous for don’t stop at the U.S. border. For years, expats have been finding great values farther south… on the Pacific shores of Costa Rica, Nicaragua, and Mexico.
Among the choices, Mexico comes out tops. That could be why this country is home to more U.S. expats and retirees than anywhere else in the world. If you’re not planning on retiring just yet, you have the option to rent out your property to other expats (long term) or go after short-term vacation rental income.
One city that offers the option to do both is Mazatlán. The beaches here are reminiscent of Venice Beach in L.A. And, beyond the sand, you have a colonial city that attracts visitors apart from the usual beach-goers.
Cost to own in Venice Beach, California: Average price in Venice is in excess of $13,700 a square meter. Just off the beach, a two-bedroom, 131-square-meter luxury condo is a whopping $1,245,000.
Cost to own in Mazatlán, Mexico: Mazatlán is one of today’s best buys for beachfront property with average prices at less than half those of better-known Puerto Vallarta. The average per-square-meter price for beachfront is around $1,700. You can buy a 130-square-meter, two-bedroom condo in a luxury pre-construction project on the Mazatlán boardwalk—with views over the lagoon and Central Park—for 4.26 million Mexican pesos. At today’s exchange rate, that’s just $212,000.
United States Vs. Overseas—How Much Can You Save?
Here’s a summary of the discounts you can expect by going overseas—based on the average price per square meter in each market…
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