According to Morgan Stanley (NYSE:MS), 2024 will likely be a better year to purchase a home. While affordability challenges are expected to persist, the forecast indicates an improvement compared to the era of mortgage rate highs crossing 8% and median home prices surpassing $400,000. Moreover, economists have concluded that the Federal Reserve may have also ended their 20-month-long rate hiking campaign. According to Forbes, federal rates have been holding steady for a second consecutive meeting on November 1. Coupled with a deceleration in inflation during October, there appears to be a positive outlook emerging for mortgage rates. The federal funds rate, serving as the benchmark interest rate for overnight loans among financial institutions, typically has an indirect impact on mortgage rates.
“We think we are poised for an improvement in affordability that we have only seen a handful of times over the past 35 years.”
Considering these dynamics, many home buyers are wondering whether to wait it out and let these conditions unfold before making a house purchase. However, the real question is whether it is worth the wait. A senior economist at Zillow Group, Inc. (NASDAQ:Z) thinks otherwise.
"The housing market—like so many other markets—is almost impossible to time. The best time for prospective buyers is when they find a home that they like, that meets their family's current and foreseeable needs, and that they can afford."
So why is it not worth waiting for the housing market to ease? According to Divounguy, home appreciation will only take a step back and not plummet. Since inventory is still constrained, housing supply is expected to remain tight for the foreseeable future. Therefore, "getting on the housing ladder" is the wisest thing a home buyer can do to build their equity and net worth.
One popular and rather tax-friendly state that individuals have been eyeing is Colorado. Retirees, in particular, are attracted to this state because of its large retiree population (more than 15%), natural beauty, and abundance of outdoor activities. While the state’s cost of living is 6.9% above the national average, there are many affordable places to retire in Colorado as well.
These places within the state are cheap enough to live on Social Security alone. Given that the average monthly social security check is $1,781, individuals dependent solely on this income can explore such places to spend their golden years. However, the October Market Trends Housing Report by the Colorado Association of Realtors notes that the number of homes in the state has dropped by 13%. Moreover, sales have plummeted by 15% as well.
“For buyers waiting for the interest rates to drop, it is important to remember that when the rates drop, if they do, we will see another frenzy and very high demand for the low number of homes that are on the market.”
The Realtor further notes that acting in the slower holiday selling season can provide buyers the opportunity to negotiate on price and even receive concessions. These concessions are being demanded more and more from home buyers. According to the Denver Post, Denver metro’s median close price was steady at $585,000 in October. However, the close-price-to-list-price ratio dropped slightly to 98.9% mainly due to concession demands.
Considering many retirees are on the lookout for smaller and more affordable homes, concessions may help them get the best deals. On that note, let’s check out the best places in Colorado to live on only social security.
15 Best Places in Colorado for a Couple to Live on Only Social Security
To compile the list of best places in Colorado for a couple to live on only social security, we have used several sources such as Nasdaq, New Home Source, Smart Asset, and Movoto. Moreover, we also explored several forums such as Reddit and Quora to assess which places in Colorado are the best for older couples to live on social security. Next, we selected the places that have a cost of living index that is 95 or below (5% or lower than the national average). We scored them on their cost of living index, median home price, and the average monthly rent of a 2-bedroom apartment. The cost of living index has been sourced from Best Places, while median home price and rents have been sourced from Zillow Group, Inc. (NASDAQ:Z), Realtor, and Redfin. Scores were summed and places were ranked in ascending order from the lowest to the highest scores.
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Here are the best places in Colorado for a couple to live on only social security:
15. Canon City
Insider Monkey Score: 14
Cost of Living Index: 91
Median Home Price: $326,400
Average Monthly Rent: $1,300
The riverfront town of Canon City is one of the best places in Colorado for a couple to live on only social security. Famous for its natural attractions such as the Royal Gorge, the Rocky Mountains, and the Arkansas River, the city is one of the only few that has managed to maintain a small–town feel yet promises all the big-city amenities.
14. Delta
Insider Monkey Score: 14
Cost of Living Index: 93.2
Median Home Price: $351,000
Average Monthly Rent: $1,100
Another place in Colorado to live on social security only is Delta, boasting a cost of living that is 6.8% lower than the national average. The city is in proximity to picturesque landscapes such as the Grand Mesa, the largest flat-topped mountain in the world. It is mainly revered for its small-town charm, mild climate, and plentiful outdoor activities.
13. Fort Morgan
Insider Monkey Score: 15
Cost of Living Index: 87.6
Median Home Price: $308,000
Average Monthly Rent: $1,455
More than a quarter of the population in Fort Morgan is over the age of 65. Besides the elderly population, this city nestled on the South Platte River is also known for its access to good healthcare, affordable cost of living, and splendid outdoors.
12. Pueblo
Insider Monkey Score: 17
Cost of Living Index: 90.3
Median Home Price: $275,000
Average Monthly Rent: $1,500
Retiring to Pueblo offers a mix of affordability, a pleasant climate, and a rich cultural scene. The city offers scenic beauty, outdoor recreation, and a friendly community as well. The favorite past-time of seniors here is exploring the many shops and restaurants in its historic Riverwalk. The cost of living in Pueblo is 9.7% lower than the national average.
11. Walsenburg
Insider Monkey Score: 20
Cost of Living Index: 78.6
Median Home Price: $282,000
Average Monthly Rent: $1,500
Seniors who wish to escape the hustle and bustle of big cities can choose to retire in the peaceful city of Walsenburg. Embraced by natural beauty, this city is known for its unique museums, natural wonders, and small-town atmosphere. The cost of living in Walsenburg is 21.4% lower than the national average, making it one of the best places in Colorado for a couple to live on social security only.
10. La Veta
Insider Monkey Score: 21
Cost of Living Index: 78.6
Median Home Price: $295,000
Average Monthly Rent: $1,420
Huddled amidst scenic mountain views, La Veta is another nice place for a retired couple to live on social security. This small town is known for its artistic community, small-town vibe, and affordable living. The town's cultural events, outdoor recreation, and proximity to the Spanish Peaks create an inviting atmosphere for retirees.
9. San Luis
Insider Monkey Score: 25
Cost of Living Index: 74.7
Median Home Price: $295,000
Average Monthly Rent: $1,318
Those who choose to retire to San Luis are promised a distinctive experience that blends cultural heritage with natural splendor. It is also one of the most affordable places to retire in Colorado, with a cost of living that is 25.3% lower than the national average. The town, deeply rooted in Hispanic traditions, provides a tranquil environment along with a leisurely pace of life. It is surrounded by the breathtaking Sangre de Cristo Mountains, offering seniors both cultural richness and scenic beauty. Those who love art will especially love it here as it has numerous art galleries brimming with sculptures, paintings, and world-class quilts.
8. Cortez
Insider Monkey Score: 26
Cost of Living Index: 92.6
Median Home Price: $280,000
Average Monthly Rent: $1,040
Another nice place in Colorado for a couple to live on social security is Cortez. This city offers a blend of natural beauty, outdoor recreation, and a laid-back lifestyle. Nestled near Mesa Verde National Park, seniors get a chance to explore archaeological wonders and scenic landscapes. The town's friendly community, lower cost of living, and proximity to cultural attractions make it an attractive choice for retirees seeking a relaxed yet enriching retirement experience.
7. Trinidad
Insider Monkey Score: 27
Cost of Living Index: 77.6
Median Home Price: $318,000
Average Monthly Rent: $1,095
Nestled in the foothills of the Sangre de Cristo Mountains, Trinidad offers retirees a scenic backdrop to call home. The cost of living in the city is 22.4% lower than the national average. Its historic architecture, vibrant arts community, and proximity to recreational activities like hiking and fishing contribute to a fulfilling retirement experience. It is also widely known as the cultural, social, and economic capital of Southeastern Colorado.
6. Alamosa
Insider Monkey Score: 34
Cost of Living Index: 81.4
Median Home Price: $265,000
Average Monthly Rent: $1,016
Numerous reasons make Alamosa the right choice for a retired couple trying to live on social security besides its affordability. For instance, the town boasts stunning views of the Sangre de Cristo Mountains, a low crime rate, and also a relaxed pace of life. It also provides access to numerous outdoor activities such as hiking and hot springs, a strong sense of community, and lower rents and housing compared to many other Colorado towns.
