Boomers Move to Las Vegas as City Soars as Top Retirement Destination
Baby boomers are trading their suburban lawns for glittering lightshows and desert adventures, as Las Vegas takes the crown as the hottest retirement destination in the U.S. A recent Bank of America report, Housing Morsel: The great migration continues, reveals a surprising trend: Boomers are embracing vibrant, exciting locations like Las Vegas, leaving behind the traditional retirement dream of quiet living.
Here is an excerpt from the Bank of America report, emphasis ours:
"Given the importance of Baby Boomers in the housing market, where are they moving to?
The generational breakdown of Bank of America internal data suggests Baby Boomers’ migration patterns over the past few years have been different from other generations. Specifically, while Austin continues to attract inward migration overall, the number of Baby Boomers in the city has declined over the past year. The exodus of the group with the most cash could have added to the downward pressure on Austin’s home prices over the last year.
Las Vegas, Phoenix, Tampa, and Orlando are among the most popular destinations for Baby Boomers, according to Bank of America internal data (Exhibit 8). Note that the pace of migration slowed for Vegas and Phoenix over the past year, but was relatively unchanged for Tampa and Orlando. In our view, this could partly explain the still resilient home price appreciation in Tampa and Orlando relative to other cities.
Alternatively, Baby Boomers, similar to other generations, are leaving some of the largest cities in the US, including the Bay area, New York and Seattle (Exhibit 9)."
"The latest Home Buyers and Sellers Generational Trends report from the National Association of Realtors found that for the first time since 2014, baby boomers overtook millennials as the generation with the biggest share of homebuyers," Bank of America shared in its Housing Morsel Report. "From July 2021 to July 2022, 39 percent of surveyed homebuyers were baby boomers, followed by 28 percent of millennials and 24 percent of Gen X."
But what exactly makes Las Vegas so alluring to this generation? Well, buckle up, because it's a winning combination of sunshine, savings, and senior fun:
Affordability Aces High: Las Vegas takes home the prize for most affordable U.S. city for retirees, according to Empower, a financial services company. "Based on our analysis, Las Vegas was the most affordable U.S. city for retirees," the report's findings stated. Ditch those hefty property taxes and say "hasta la vista" to state income, estate, and inheritance taxes – Nevada keeps things friendly for retirees.
Sunshine on Tap: Soak up year-round sunshine, ranking Las Vegas second for average annual sunlight hours. Vitamin D dreams come true in this desert paradise.
Thriving Community: Vegas isn't just for 21-year-old bachelors anymore. A growing senior community offers a vibrant social scene and endless leisure opportunities, from pickleball tournaments to line dancing classes.
Entertainment Galore: From world-class shows and dazzling casinos to stunning desert landscapes and outdoor adventures, Las Vegas keeps boredom at bay with endless options for exploration and amusement.
But hold your horses, cowboys. Before packing your poker chips, consider the housing crunch. Las Vegas is experiencing a demand for affordable homes, so finding your golden years oasis might require some searching.
Florida: Sunshine State, Second Choice for Boomers:
If Vegas sounds a tad too vibrant, fear not. Tampa and Orlando, Florida, also rank high on Boomers' retirement wishlists, offering similar sunshine-soaked perks with a slightly slower pace. "Bank of America data suggests baby boomers are relocating to Las Vegas and Tampa, Florida, while millennials prefer Austin, Texas," the report noted, adding that both "groups are leaving the larger cities of San Francisco and New York."
So, whether you're craving casino lights or beachside bliss, the sun-kissed South beckons. Las Vegas and Florida offer Boomers a vibrant alternative to the rocking chair, proving that retirement can be an exciting adventure filled with sunshine, savings, and senior swagger.