Why South Florida is the #1 Retirement Destination in the U.S.

Florida is the top retirement destination in the U.S. With no state income tax, affordable cost of living, hundreds of miles of beaches, and year-round warm and sunny weather, Florida attracts retirees and vacationers from all over the world.

According to U.S. census data, 12 percent of retirees who moved to a different state chose Florida in 2022, more than any other U.S. state. More than 78,000 seniors moved to the state in 2021 alone.

South Florida in particular is a haven for retirees. Many developments are senior living communities—like Boynton Beach by Kolter in Palm Beach County, America’s first destination resort.

This article explores the various reasons why South Florida has earned its reputation as the ultimate retirement location in America, including statistics, tax benefits, lifestyle, and a focus on Boynton Beach.

Here’s What We’re Going to Cover:

Florida Retirees: Statistics and Demographics

Florida is America’s number one state for retirement.

40 percent of Florida’s population is over the age of 50. More than 20 percent of the state’s population is over the age of 65, the highest in the nation. In fact, Florida has more senior citizens than the entire population of Switzerland.

Situated along the Atlantic coast, 31 percent of Palm Beach County’s population is over 60 years old. Boca Raton in Palm Beach County saw its population grow at a rate three times the national average over last two years, including a high number of young and working-age residents.

In Sarasota County on Florida’s Gulf coast, nearly 40 percent of the population is over the age of 65. Relatedly, 10 percent of multi-family residences in Sarasota County are 55-plus active adult communities.

A 2023 study conducted by WalletHub examined more than 180 U.S. cities on their favorability for retirees by measuring 45 different data points for each city, including quality of life, affordability, recreational activities, healthcare, and more. It found that the #1 city for retirement in America is Tampa, Florida. In fact, four of the top ten best cities for retirement were in the Sunshine State.

By 2030, Florida is expected to add 2.7 million more senior citizens to its current population. A study by the University of Florida found that, by 2024, more than 25 percent of Florida’s population will be seniors.

Across the country, retirees are a rapidly growing demographic. The number of living retirees in the U.S. has grown 40 percent in just 10 years. By 2030, experts estimate that one in five Americans will be age 65 or older.

American seniors tend to have more disposable income than their younger cohorts. The 71 million baby boomers in America control more than $70 trillion in wealth and real estate. Indeed, federal estimates suggest boomers will soon control more than 70 percent of the wealth in America.

Florida Tax Benefits for Retirees

One of the key factors that makes South Florida an attractive retirement destination is its favorable tax environment, meaning retirees can keep more of their hard-earned money, enhancing their overall quality of life.

Florida is one of the few states in the U.S. that does not impose state income tax.

Additionally, Florida does not tax Social Security benefits, pension income, or retirement account withdrawals. Florida also has no estate or inheritance tax. These lax tax laws allow retirees to live comfortably off of a Social Security check.

Florida is also famous for its lower cost of living. In fact, the cost of living in Tampa specifically is nearly 20 percent lower than New York City.

The average effective property tax rate in Florida is less than 1 percent, one of the lowest in the country. In 2023, the median property tax paid in the state was only $2,143. Meanwhile, residents of high-tax New Jersey pay an average of $8,797 in property tax, with a 2.47 percent tax.

Homeowners who declare Florida as their primary residence are exempt from up to $50,000 in property taxes. School district taxes carry an exemption of up to $25,000. Annual property tax increases are capped at 3 percent or the change in the Consumer Price Index (CPI), whichever is lower.

In order to take advantage of Florida’s tax benefits, homeowners must fill out and notarize a Declaration of Domicile to make Florida their permanent residence. The dwelling cannot be a seasonal or second home. Registering to vote in Florida, changing your mailing address, or obtaining a Florida driver’s license can help prove permanent residence.

To take full advantage of Florida’s tax benefits for retirees, planning is required. Additionally, it is advisable to seek the advice of a tax professional.

South Florida Lifestyle

The Sunshine State lifestyle is synonymous with relaxation, recreation, and enjoyment.

South Florida’s warm climate, with 237 days of sunshine per year, allows retirees to indulge in outdoor activities year round, from walks along pristine beaches to world-class golf courses and more.

Florida has 825 miles of sandy beaches, including world-famous destinations like Daytona Beach, Miami Beach, and Palm Beach. In addition, the region’s natural wonders, like Everglades National Park, draw eco-tourists from around the world for its swampy wildlife and birdwatching.

The weather is warm almost all year long, with humid summers and temperatures reaching 90 degrees Fahrenheit. In winter, South Florida rarely sees temperatures drop below 50 degrees Fahrenheit. Hurricanes, however, are a potential issue from June through November, sometimes requiring large-scale evacuation.

According to U.S. News and World Report, Florida is home to four of the five fastest-growing places in America in 2023 and four of the top five safest places in America. The magazine specifically referred to Naples, the number one safest city in its study, as “a preferred retirement spot for the rich, powerful, and cold averse.”

The top five destinations for retirees are Sarasota, Naples, Palm Beach, the Villages, and the Fort Lauderdale/Miami area. St. Petersburg, another popular locale known as the Sunshine City, enjoys approximately 361 days of sunshine a year and an average temperature of 74 degrees.

From Palm Beach County to Miami, South Florida, known as the “Golden Coast,” has an endless stretch of beachfront condos, resorts, hotels, shopping, and vibrant cities.

Palm Beach was the first destination resort in America, with specially built railroads drawing tourists from New York and the Northeast. In FY 2022, Palm Beach County welcomed a record 9.1 million tourists to its beaches and attractions.

Due to these numbers, tourism in Palm Beach contributes more than $10 billion to the local economy and supports over 85,000 jobs. Tourist taxes, like the so-called “bed tax” on hotel-like lodgings, were 40 percent higher than 2019, the previous peak year.

Coastal areas in Florida account for 76.5 percent of the state’s population and have a gross domestic product (GDP) of $760 billion. However, waterfront living can be found nearly anywhere in Florida, with an abundance of lakes and watersports activities available even in Central Florida places like Orlando.

Active Adult Communities

The most popular housing option for retirees today is an active adult community.

There are more than 2,000 active adult communities for ages 55 and up in the U.S., and Florida is home to over 673 of them, with more developments announced each year.

“Over the past decade, the housing market has been driven, in part, by the 73 million Baby Boomers who have been buying homes as they retire and adopt new lifestyles,’’ says Rob Parahus, president of Toll Brothers, one of the top U.S. home builders.

Active adult communities provide residents a low-maintenance lifestyle. Many over-55 communities offer lawn care and home repair, freeing up retirees to enjoy more of their time.

Amenities such as fitness centers, swimming pools, social clubs, golf courses, walking trails, classes, and on-site healthcare facilities can help active seniors find the perfect community to suit their lifestyle and ensure a comfortable retirement experience.

Cost of living is typically lower in active adult communities than in assisted living facilities due to the reduced need for daily medical attention. Over-55 communities also often have security staff and gated entrances, making the neighborhoods safer.

According to Florida developer Michelle Young of Luxury Portfolio International, “Master-planned communities are perfect for the retiree who wants an active lifestyle and feels like they are on a permanent vacation. These offer a built-in social life with book clubs, card games, golf, tennis, pickleball, and walking trails… In all cases, convenience also means being close to quality health care facilities, including top-rated doctors and hospitals.”

South Florida offers a plethora of senior living communities designed to cater to the needs and preferences of retirees. For those seniors requiring more care, South Florida also has a range of housing options, including independent living, assisted living, and memory care.

Boynton Beach, Florida

Nestled within Palm Beach County in South Florida, Boynton Beach offers retirees a perfect balance between relaxation and recreation.

The area offers numerous popular attractions. Boynton Beach Oceanfront Park, with its famous boardwalk, was voted the #1 family beach in Palm Beach County by Florida for Boomers. Boynton Harbor Marina offers fishing charters, jet ski rentals, sightseeing cruises, scuba diving, and other waterfront activities.

The popular Arthur R. Marshall Loxahatchee National Wildlife Refuge in Boynton constitutes one of the largest urban wildlife refuges in the country. This preserve has more than 145,000 acres of protected natural land, including 400 acres of cypress swamp, and is home to more than 250 species of birds, making it a haven for birdwatchers.

With more than 80,000 residents, Boynton Beach is the third largest city in Palm Beach County. The average home price of all housing units—single-family homes, condos, etc.—was $328,370 in 2021.

With a variety of parks, waterfront activities, and a vibrant downtown area close to Palm Beach, Boynton Beach combines the tranquility of a beach town with the convenience of urban amenities.

Boynton Beach Multifamily EB-5 Project by Kolter

Boynton Beach Multifamily by the Kolter Group is a new multi-family active adult community for retirees in Palm Beach County, the heart of South Florida.

The development will feature 210 apartment units, a 14,000-square-foot clubhouse, pools, and other amenities for seniors.

The project features a 5.0% annual preferred return for EB-5 investors and a short 3.75-year investment duration target.

Boynton Beach Multifamily by the Kolter Group is only eight miles from the Atlantic coastline, a ~10-minute drive. This location offers proximity to the legendary beaches of Palm Beach County while providing relative safety from hurricanes, which cause their most damage along the oceanfront.

There are no existing, proposed, or under construction active adult communities within five miles of the property, making it uniquely situated in the Palm Beach area for seniors.

The Kolter Group is one of the largest private developers in the U.S. Since 1997, Kolter has invested in over 180 projects with an expected value of over $24.0 billion, including over 3,500 apartment units. Across its 25+ years of history and the billions of dollars it has borrowed, the Kolter Group has never failed to repay a loan or complete a project.

EB5AN has completed over 15 previous EB-5 projects with Kolter, each having achieved 100 percent financial success and USCIS project approval.

South Florida’s status as the top retirement destination in the world is well deserved, considering the region’s tax benefits, appealing lifestyle, and array of senior living options.

Boynton Beach Multifamily by Kolter is another such retirement community in the hottest active adult market in the U.S.

For more information on Boynton Beach Multifamily and other real estate EB-5 opportunities, schedule your free one-on-one consultation today or email us at info@eb5an.com.