Real Estate

Older home buyers are flocking to this New England state. It’s not Mass.

Metro Boston is attracting more older home buyers, but is well under the national average as region's educational, health, and financial sectors draw in young workers.

By Sury Chakraborty

November 21, 2024

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USA Today may have named Boston one of the best cities in the country to retire, but that’s not where older home buyers are flocking, according to a report Construction Coverage released on Nov. 14.

Forget the city, the state itself is not a must for older home buyers, according to this report. Massachusetts ranked among the bottom states for older home buyers, with only 17.5 percent at age 55-plus.

No New England state broke the top 10 except for Maine, which landed at No. 8, with nearly 26 percent of purchases by age 55-plus buyers and 10.1 percent by 65-plus, the research firm reported.

Maine’s economy is rooted in traditional industries such as forestry, fishing, and small-scale farming, said Michael Stromberg, lead data analyst at Construction Coverage. “These sectors offer fewer opportunities in modern industries like technology, which have drawn younger generations to other states in recent decades.”

Here’s how the New England states stacked up:

Most of the top 10 states on the list shouldn’t come as a surprise  — people tend to follow the sun  — but the inclusion of cold-climate states like Maine, Montana, and Wyoming may give you pause. Who wants to shovel snow in their later years?

“Warmer and more affordable destinations like Florida, South Carolina, Arizona, and Nevada draw a larger share of older buyers due to their retirement-friendly environments,” Stromberg said.

Save for Texas, the bottom 10 were states that brave the cold and snow:

“Overall, the Midwest and Northeast have some of the lowest rates of older home buyers, as these regions are typically less popular for retirement or second homes compared to warmer, sunnier areas,” the report states. 

It’s good to know that older home buyers would choose Massachusetts before New York.

Metro Boston ranks low, too

In metro Boston, 16.2 percent of home buyers were 55 years old or older, a percentage that is much lower than the national average of 21.2 percent, according to the report.

Stromberg said that the data reflects 2023 home sales and that Boston is gaining ground with older buyers. “Compared to 2022, the percentage of older home buyers in Boston has increased year over year,” he said.

Metro Boston has a lower share of older home buyers because of the strong appeal to working-age professionals and families, who are likely drawn by the region’s job market and educational opportunities, Stromberg said. “Boston’s reputation as a hub for career opportunities, particularly in education, health care, and technology, further positions it as a market where younger professionals dominate home-buying activity.”

Providence was the only New England city to be ranked near the top of the list of large metros with the oldest home buyers: 20.4 percent.

These were the top 10 metros:

1. Tucson, Ariz.
2. Phoenix-Mesa-Chandler, Ariz.
3. Las Vegas-Henderson-North Last Vegas, Nev.
4. Jacksonville, Fla.
5. Tampa-St. Petersburg-Clearwater, Fla.
6. Orlando-Kissimmee-Sanford, Fla.
7. Riverside-San Bernardino-Ontario, Calif.
8. Virginia Beach-Chesapeake-Norfolk, Va.-N.C.
9. Miami-Fort Lauderdale-West Palm Beach, Fla.
10. San Antonio-New Braunfels, Texas

And these were the bottom large metros, starting with the lowest percentage:

1. San Jose-Sunnyvale-Santa Clara, Calif.
2. Salt Lake City-Murray, Utah
3. Austin-Round Rock-San Marcos, Texas
4. San Francisco-Oakland-Fremont, Calif.
5. Seattle-Tacoma-Bellevue, Wash.
6. Dallas-Fort Worth-Arlington, Texas
7. Buffalo-Cheektowaga, N.Y.
8. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
9. New York City-Newark-Jersey City, N.Y.-N.J.
10. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.

For mid-size metros, Springfield and Worcester were near the bottom with roughly 16.5 percent of the oldest home buyers. For smallest metros, Barnstable had the 13th most, with 40 percent.

The research firm analyzed data from the Federal Financial Institutions Examination Council’s 2023 Home Mortgage Disclosure Act, according to the methodology.