Housing is most Americans’ biggest expense. Due to inflation, pandemic-related supply and demand shocks and increased lifestyle flexibility, rents throughout the United States are soaring. These rent increases pose a serious threat to any retirement budget, but there’s a simple solution: Swap out life in the most popular U.S. retirement havens for overseas equivalents.
Many retirement spots overseas offer comparable lifestyles to the U.S. at significantly lower costs. Here’s a look at rental costs in U.S. retirement destinations versus similar locations overseas.
[See: The Best Places to Retire Overseas in 2022.]
Tampa, Florida, vs. Corozal, Belize
Florida is a popular state for retirement, and Tampa draws many retirees. Over a quarter of the population is 60 or older. Retirees love Tampa for its year-round warm weather and combination of laid-back beach atmosphere with big-city amenities. But housing costs in Tampa are no longer affordable for many retirees. The median monthly rent is $1,160, but it can be much higher in some areas.
Just over a two-hour flight from Florida is Corozal, Belize, where a couple can live comfortably on a monthly budget of far less. Rent is especially affordable in Corozal, costing between $300 and $500 per month for a two-bedroom, local-style home with sea views.
Corozal is found in northern Belize, tucked away in an inlet of the Caribbean Sea. Expats are drawn here for the warm weather, aquamarine ocean waters and simple, back-to-basics lifestyle.
But Corozal is a sleepy town. While it offers much of the same laid-back appeal as Tampa, its infrastructure is lacking. Luckily, Corozal is only nine miles from Chetumal, just across the Mexican border, where retirees can shop for U.S. products at big-box retailers and access additional health care options.
Myrtle Beach, South Carolina, vs. Rota, Spain
South Carolina attracts many retirees, and Myrtle Beach, with its coastal living opportunities and excellent golf courses, has a lot of appeal. Over a third of the Myrtle Beach population is age 60 or older.
Property prices in Myrtle Beach are lower than in some other parts of the U.S., but they are growing. The median monthly rent is $976, and it costs a median of $1,296 per month to own a home with a mortgage.
A lifestyle similar to what Myrtle Beach offers can be enjoyed for even less overseas. By relocating to Rota, Spain, you can instantly free up savings in your retirement budget on rent alone. The average rent for a two-bedroom place in Rota is about $600 to $750 per month.
Located on Spain’s southern Atlantic Coast, Rota also has seaside appeal, with long expanses of pristine, soft-sand beaches. It’s one of the warmest, sunniest areas of mainland Europe, and it’s an under-the-radar golf destination, where membership fees are a fraction of Myrtle Beach prices. Plus, the U.S. dollar is at a 20-year high against the euro, making Europe more affordable for Americans right now.
Rota is home to a naval base that’s shared by Spanish and U.S. forces, with many U.S. Marine Corps and Air Force personnel living in the area. If you’re looking for a lower cost of living in Europe with an American-influenced community, Rota is a top option.
[See: 10 Affordable Places to Rent an Apartment in Retirement]
Scottsdale, Arizona, vs. Chitré, Panama
Arizona’s pleasant winter weather is a big draw for many retirees. In the Phoenix metro area, 21% of the population is age 60 or older, and the median rent is $1,177 monthly. Scottsdale, in particular, draws many retirees, especially during the winter months.
Compare that to Chitré, an up-and-coming retirement destination on the northeast coast of Panama’s Azuero Peninsula, where a two-bedroom property typically rents for $300 to $450 monthly.
While everywhere in Panama is hot year-round, Chitré sits in a desert-like region that gets less rainfall and humidity than other parts of the country, so the climate is similar to Scottsdale’s. There are several nearby beaches where you can buy beachfront property at shockingly low rates.
Chitré is not a household name in the United States, but the area is home to a small group of about 500 North American expats. They’re drawn by the ease of life in Chitré, low cost of living and safe community. Chitré has above-average amenities and infrastructure for a Panamanian small town.
Chicago vs. Medellín, Colombia
For those who want a city atmosphere in retirement, Chicago is a top option in the United States. About 21% of the Chicago population is 60 and older. Chicago is centrally located and offers plenty to see and do.
Chicago can feel affordable compared to other big U.S. cities, but property prices are rising steadily. The median monthly rent is $1,155. But retirees don’t have to settle for these prices to enjoy a cosmopolitan atmosphere.
Medellín is Colombia’s culture capital, and it allows for a Euro-chic lifestyle at a fraction of Chicago’s prices. The monthly cost of living is highly customizable, but $2,000 monthly is enough for most couples to live comfortably, including the cost of renting a modern two-bedroom apartment, which is about $700 per month.
Medellín boasts world-class museums, galleries, sports teams, performing arts venues, festivals and fine dining. These big-city amenities are likely to feel affordable to Americans, thanks to the strength of the U.S. dollar against the Colombian peso.
Medellín has an efficient public transport system and pleasant year-round weather, helping you save money on your energy bills. There’s no need to heat or cool your home when the temperature is perpetually between about 65 and 75 degrees.
[SEE: The Best Beach Towns to Retire in the U.S.]
Sacramento, California, vs. Lisbon, Portugal
With natural beauty, wine country, great weather and cultural attractions, California is a dream retirement destination for many people. But the cost of living is prohibitively expensive for most retirees in the most populous U.S. state.
Sacramento is a relatively affordable choice for retirees compared to other California cities, but even here, life comes at a premium. The median rent for a Sacramento property is $1,364 per month.
On the other side of the Atlantic Ocean is Portugal, where the lifestyle is similar to California. Portugal’s capital city can feel like a bargain for U.S. retirees.
Lisbon apartments rent for an average of $840 per month. Even though property prices are on the rise, Lisbon is one of Europe’s most affordable capital cities. The U.S. dollar’s strength further accentuates the savings opportunities in Europe.
Lisbon is one of Europe’s oldest cities, with historical ambiance and Old World charm. It’s found where the River Tagus empties into the Atlantic Ocean, with swimmable beaches just a few minutes from the city. With some of Europe’s best weather and incomparable cultural amenities, it’s hard to deny Lisbon’s enhanced standard of living.
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Rent Comparison: Rental Costs in U.S. Cities Versus Overseas originally appeared on usnews.com
