How much will a new home cost? What will the taxes be? Will I have public water and sewer? These and other questions are important to ask and evaluate when you are buying a retirement home in another state. Statistics say that most people downsize and stay within an hour of their existing home when they retire.
An AARP survey in 2010 showed that people over 45 prefer to live near family, and within reach of basic services. The desire to stay close to the people and services that they rely on may be one factor keeping seniors in place.
If they do relocate, there are usually specific reasons and a lot of it has to do with taxes and cost of living. Weather may also play a role.
They will relocate to areas with a lower cost of living. Still, many boomers dream of relocating in retirement, leaving behind traffic, cold weather and high taxes. A quarter of a century ago, the most important consideration in choosing where to relocate in retirement was climate. Today, the primary drivers are the cost of living and access to affordable healthcare. US News
So, what will a new home cost in a 55+ community in Delaware?
In an improving real estate market I thought it would be a good time to talk about the relationship between lower taxes and the price of a home in Delaware. It has become no secret that Delaware is one of the most tax friendly states for retirees. (FAQ’s on DE Taxes) Depending on where live now, that does not necessarily mean that our home prices are lower.
Delaware is a small state
Did you know there are less than a million people in the entire state of Delaware? And, there are only 3 counties. Each county has much to offer and prices can vary greatly from one to the other.
The northernmost county, New Castle County, is closest to airports, Amtrak, and Route 95 with easy access to major cities within the Mid Atlantic Region. Middletown is the fastest growing area in New Castle County and home to several popular 55+ active adult communities. While this is a popular location for people from New Jersey, Pennsylvania, Maryland and other states in the area, it is not where you will find the least expensive homes. New homes will range from the mid $300s to the high $400s and into the $500s if you go further north into the Brandywine area closest to the Pennsylvania border.
Kent County is where you will find Dover, the state capital, and Dover Air Force Base. In this area, you will find a good choice of smaller 55+active adult communities and the prices can be significantly lower than in the areas to the north or south. It is possible to find attached homes in the low $200s or better and single family homes beginning in the mid $200s to the mid $300s.
Sussex County is what we call “Coastal Delaware” and this is where Boomers & Beyond look to move for not only a primary residence in retirement but often for a second home/vacation home even while they are still working. Although this county is the fastest growing, it currently has the smallest population of the three. Because of proximity to the beach resorts of both Delaware and the Eastern Shore of Maryland, land costs are again higher in the county and prices are higher than in Kent County and often higher than the northern part of the state as well. On the western side of the county, you can find a single family home in the $300s. The closer you get to the beach, the higher the price of a new home and the range will be in the $400s and $500s.
Considering retiring to Delaware? Let us help.