Rancho Mirage is expected to be an area of growth in the housing market over the next 15 years after being picked as one of the "15 Best Retirement Hot Spots for Real Estate Investing" by RealtyTrac.
The real estate data company based in Irvine, Calif., narrowed its list to 40 cities nationally where at least 33 percent of the population is 65 or older. The top 15 were ranked based on the annual percent change in home prices as of May, according to RealtyTrac.
Rancho Mirage was ranked seventh based on price appreciation and capitalization rates, according to RealtyTrac. The median sales price for May 2013 in Rancho Mirage was $430,000, which was the third highest of the 15 cities. The city also had an annual change in home prices increasing 16.77 percent and a capitalization rate of 2.70 percent.
The RealtyTrac chart also indicated Rancho Mirage’s population is comprised of 45.70 percent of retirees; the average temperature is 74 degrees – which was the warmest location of the 15 cities – and the cost of living index is 152 or second to only East Hampton, NY.
Two Florida destinations grabbed the top two spots and landed six in the top 15 overall. Dunnellon (about 100 miles north of Tampa) was ranked No. 1 with Naples at No. 2, respectively, followed by Hot Springs Village, Ark., Douglassville, Pa., Sun City, Ariz., and North Fort Myers, Fla.
As 10,000 Baby Boomers retire each year through 2029, the demand for both rentals and owner-occupant purchases in the retirement hot spots like Rancho Mirage will remain strong, according to RealtyTrac.
1. Dunnellon, Fla. ($76,941; up 31.42%)
2. Naples, Fla. ($267,473; up 26.79%)
3. Hot Springs Village, Ark. ($170,000; up 25.93%)
4. Douglassville, Pa. ($252,000; up 22.33%)
5. Sun City, Ariz. ($113,275; up 19.90%)
6. North Fort Myers, Fla. ($84,000; up 19.01%)
7. Rancho Mirage, Calif. ($430,000; up 16.77%)
8. Punta Gorda, Fla. ($138,938; up 16.71%)
9. Sun City Center, Fla. ($99,750; up 14.66%)
10. Venice, Fla. ($148,238; up 11.46%)
11. Florence, Ore. ($165,000; up 10.37%)
12. Green Valley, Ariz. ($144,550; up 10.13%)
13. Seal Beach, Calif. ($692,000; up 9.84%)
14. Orange City, Fla. ($68,000; up 8.80%)
15. East Hampton, N.Y. ($952,500; up 8.18%)