When it comes to buying a home for retirement, location and the cost of living in retirement matters. The price of the same two-bedroom home can be dramatically different in different cities, states, and even within the same area. Likewise, what you can expect to pay to sustain a standard of living—known as cost of living—varies across the country. Cost of living and the cost of retirement go hand in hand.

How to Determine the Cost of Living in Retirement

To come up with cost of living, several things are factored in. The price of necessities such as food, utilities, housing, services, transportation and taxes are all considered. If you’re looking to buy a home in a new location when you retire, comparing this number with the national average—as well as your current location—can be a useful way to determine where you can get the most for your money.

It helps to remember that cost of living doesn’t necessarily indicate quality of living—a more expensive location isn’t necessarily a better choice for you. Likewise, the amount you’ll save in a less expensive location might necessitate a change in lifestyle.

There are some factors that just don’t come with a price tag. It’s important to do your research and prioritize what is most important when you decide to retire. If you seek greater access to recreational activities and a milder climate, having a slightly higher cost of living may be worth it. In the end, your home and the community where you live is a reflection of what is most important to you, so take the time to get to know the location and the people who live there. For more information and to answer any questions you have about cost of living and buying a home, contact a mortgage professional such as Pulte Mortgage.