Retiring in the COVID-19 Era

 COVID-19 is a serious concern for older people and generally those looking at retirement are in that "older" category. How does COVID effect soon to be retired people? Can you still move? Can you still buy a house?

Well the move part depends on your local state, but in Washington real estate is alive and well. There are so protocols we utilize when showing properties, but sales are quite brisk. in fact the real estate market is holding the economy together right now. 

Our market here in SW Washington is seeing pressure on housing from multiple fronts. Low interest rates are driving millennials to the market. Geo-Political and taxation issues are drive Oregonians, particularly from Portland to the area. And the mass exodus in California is also driving buyers our way.

Washington enjoys a robust and high quality healthcare industry as well as a variety of quality living communities for the retired set. COVID-19 hasn't made this area any less desirable for retirees, in fact it may be even more so with quality heath care, no income tax, and somewhat flexible COVID-19 government restrictions.

Washington continues to be a great place to retire and the strong real estate market means retirees can enjoy a rising equity position as more and more people flock to the state.

This month I am recycling an article from my Real Estate website that has some relevance to retirees considering Vancouver, USA.

Originally posted on Realtor Rod, 8/14/2020, by Rod Sager

High-rise condos

Vancouver, USA is a place that has one of the most diverse residential real estate markets in the entire region. The city proper lies on the shores of the mighty Columbia River where nearly 200,000 people reside within the incorporated boundary. But Vancouver also has another 140,000 or so people living in urban and suburban neighborhoods just outside the official "city." 

This can make for some interesting transitions between various neighborhoods that have developed over the decades at different paces and under different county guidelines for development. When venturing outside the incorporated boundaries of the city, neighborhoods will take on a variety of different characteristics ranging from near rural to urban densities. Outside of the incorporated city one may find neighborhoods with streets that transition from fully developed suburbia to rural open culvert and back again. This is very rare inside the incorporated city but somewhat common in unincorporated neighborhoods. This is not a problem per se but for those that like a conforming neighborhood the incorporated city is the best bet.

It is mostly in the unincorporated neighborhoods that one can find a suburban home on a large 1/2 acre or even 1 acre lot with a bit of a country feel yet still "in town" with close proximity to suburban amenities like schools and shopping. But these are also neighborhoods where one might notice some quasi rural effects such as livestock, roosters, and other traditional rural and farming type ambiance for better or worse.

Most cities have a variety of transitional areas but Vancouver has 140,000 people living in these unincorporated neighborhoods. Vancouver has more people living in the neighborhoods outside the city than live in any of Portland's suburban cities including Gresham, Beaverton, and Hillsboro. 

At some point over the next decade or so, the city will annex most of these areas and when that happens some conformity changes will occur which in general helps the overall aesthetic, but may cripple some of the charm. 

Rural 5 acres, in close to "town"

People moving in from out of the area are often taken by surprise at the "size" of Vancouver and that is likely because they expected a city the size of the Vancouver described on the Wikipedia page and found the Vancouver of reality which is nearly twice as big. Vancouver has a robust downtown that has become very urban over the last 25 years yet remains notably more navigable than Portland's busier urban core. One can find high-rise condos and waterfront apartments in modern walk-able and sustainable neighborhoods. Vancouver has a large area of vintage classic homes in Norman Rockwell type neighborhoods such as Arnada, Shumway, Hough and Carter Park. The city has a wide swath of neighborhoods with homes dating to every decade of the 20th century. Vancouver is like a time machine of sorts offering a glimpse of neighborhood life across the decades. 

For those that want a house on five acres with horses and such, Vancouver even has a fair bit of that to the east in the Proebstel area. Like the title says, it's an eclectic mix with something for everyone :)

Low Rates Driving Buyers to Market

Low interest rates are driving new buyers to the market all over the country. Although many retirees plan on a cash purchase, having entry level buyers competing for similar one level smaller homes can prove troublesome for the budget minded retiree. 

Although Washington is attractive to seniors and retirees with no income tax it is also popular among young people coming into the state for high paying jobs across a wide number of fields. The Tri-Cities and Vancouver remain popular for both retired and working people.

Retirees looking for that one level dream home may find themselves in competition with up and coming youngsters looking the jump into the is hot market with sub 3% mortgages available for solid borrowers. Retirees over the age of 55 can sometimes find communities design for older residents and may find less competition from working persons. But those communities are often sought after as well by the millions of aging boomers looking to downsize and slow the pace.

In any case retirees thinking about paying cash for a house may want to revisit the notion of a loan. Borrowing a few hundred grand at less than 3% is not a bad deal at all.   

Is SW Washington State the BEST non Sun Belt Location in America?

I say non Sun Belt because let's face it, seniors tend to retire in warmer locales. Washington State and warm weather are rarely in alignment. That said Washington State enjoys the most mild winter weather of any state above the 45th parallel. How does the Evergreen State compare against the top US States to retire in? According to Investopedia the most POPULAR states to retire in and According to Wallet hub the BEST to retire in.

Rank	Best	Most Popular	Rank Best List
1	Florida	New Mexico	49
2	Colorado	Florida	1
3	New Hampshire	Arizona	22
4	Utah	South Carolina	18
5	Wyoming	Idaho	9
6	Delaware	Maine	28
7	Virginia	Vermont	36
8	Wisconsin	Nevada	35
9	Idaho	Wyoming	5
10	Iowa	Montana	12

Notice that Washington State appears on NEITHER list. On the wallet hub list of "Best" places to retire Washington is crushed by it's Number 36 "affordable" ranking and that is driven largely by the atrociously expensive Seattle Metro Area housing costs.

The most popular list has some strange variance from the best list. Vermont is very popular for retirees yet ranks poorly on the best list which measure metrics important to retirees, like health care, weather, housing costs, taxes, etc.

This dynamic shows that some retirees ignore the ratings and go for other reasons, such as proximity to family, weather over all else, air travel corridors to visit family they may be leaving to retire, and so on. Why do so many North Easterners retire to Florida? Many reasons, it is a north south no-time zone flight between the Northeast and Florida. Florida is highly rated for retirees. It is a no brainer, really.

California is a state that is shedding retirees fast. Arizona and Nevada are no doubt popular choices for the exodus of California. Washington State enjoys a similar advantage to Florida for California retirees because of the short north-south flight corridor allowing for easy visits to family and friends left behind. Although California transplants are the #2 source of new residents to Washington State, Oregon remains #1 by a huge margin. Washington is an easy choice to make versus Oregon for retirees. In fact when housing costs are taken out of the equation, Washington State routinely ranks in the top 10 states in America to retire. The beautiful thing about Southwest Washington is that housing costs locally are less than HALF that of Seattle.

Southwest Washington State is regionally superior to Washington State offering all of the Evergreen State benefits without the glaring disadvantage on housing costs. Overall when separating this local area out from the rest of the state, SW Washington would easily land in the top ten best list.

Let's do a scale of 1-10 in Clark County, Washington for retirees compared to other West Coast locales, click on the chart to enlarge.



This area continues to be a large draw from West Coast retirees in Oregon and California, be it chasing the kids to better opportunities in retirement, Washington State outside of Seattle is still one the best places in America to retire.

COVID-19 Slowing Down but not Halting Construction

Several fantastic senior living projects are in a variety of phases right now in Vancouver. The progress on some of the projects actively under construction was slowed significantly for a couple of months when the Corona Virus pandemic first hit. Now crews are back on the job and most are running at at least 60% capacity.

A few projects that are still in the planning phases may also be a bit delayed but that process is going to start picking up as well. Any people that are further along the road of retirement and may be looking for living arrangements that allow you to age in place, may need to sit tight an extra couple of months should a newer facility be to your liking.

There is a great deal of construction and planning in the senior living space her in Clark County, Washington. Washington remains a great place to retire and may be the best four-season retirement state in the USA.

I mentioned in a prior post that The Springs Living is planning on building their first high-rise property on Vancouver's Waterfront. The Block 18 proposal is working its way through the planning phases. So long as the Springs has their funding in place that project should be shovel ready in less than six months. The City of Vancouver has master-planned that entire 21 block waterfront as an urban community. The Springs proposal at 12 stories meets the minimum density requirement and should have no issue with FAA height regulations for the nearby PDX and Pearson airports. I am actually very excited about the Springs project it looks fantastic and will give local retirees a modern urban living experience on the majestic Columbia River.

Affinity at Vancouver is wrapping up their large 170 unit project in Orchards near the SR-500 & I-205 interchange. This more suburban project is close to shopping and services as well as major highways.

Overall things are looking up for retirees in Southwest Washington state even as the COVID-19 restrictions continue, projects continue to progress as well.

Retirees Continue to Pick Washington

Washington State continues to attract retirees more often than any northern state in the US. The lack of a state income tax and breath taking scenery are all part of the allure. This has brought a fair bit of retirement community development to the state. Washington State offers that rare four season climate without the bitter cold winters found in most northern locales.

The Springs Living, an Oregon based upscale and full service retirement community developer submitted a pre-app package to the City of Vancouver, WA for a fabulous high rise project on the gorgeous Vancouver Waterfront. this project will feature 200 units from independent living to assisted living, and memory care.

Shea Homes, the developer of the popular Trilogy retirement resort style communities has four communities in Washington State which is as many as most of the sun belt states. Three of the Washington sites are long since sold out. The newest development, Trilogy at Bonny Lake still has new homes available.

Washington is the ultimate northern locale for retirees and the robust economy means your kids and grand-kids may already be here waiting for you!

Healthcare in the spotlight, with COVID-19 about

Retirees considering a move to the Evergreen State can rest assured that the health care system is in great shape. US News and World Report ranked all fifty US states for overall healthcare and Washington State was #4 and is the only no-income tax state in the top 10 and the best overall tax state among the leaders in healthcare.

Retirees tend to have concerns on healthcare and Washington State remains the best northern state int he nation for retirees and one of the best overall edging out many sun-belt locales for overall retirement living.

Washington has been hit hard by the Corona Virus but our system is handling the case load, and working through this trying time as well as can be expected for such a significant health event.

Since this site is focused on retirees, it should be noted that retirees are much more at risk to have a serious health issue from COVID 19 than younger people. Follow the direction of your local health officials and be mindful that this disease can and will kill older people and people with underlying health issues.

Be healthy, be strong, and retire to Washington State.