LCOL, MCOL & HCOL Advantages, Disadvantages & Healthcare

[Offgrid Organic Farmer]

We have previously owned homes in California, Connecticut, Washington, and Scotland. And we have lived in Va, SC, and Fl.

After retiring we settled in Maine, which we perceive to be a LCOL region. We are about 30-minutes from the ocean, in a dense forested area.

Home prices range from $30k [inland] to $500k [in ocean-frontage tourist towns].

Food costs; we spend about $200 a month for 2.

Home RE taxes are 0.08% of appraised value.

Our town has about 135 people, we are 20 minutes from a big city which has everything. The city has most of the big box stores.

Vehicle taxes are based on MSRP and age, so a higher priced / newer car is taxed a lot more. But any vehicle over 5+ years old is taxed very low.

Military pensions are not taxed by the state.

No HOA.

Healthcare is abundant and no shortages or docs or Specialists. There are basically no real wait times to see any provider. We do get a lot of medical tourism here from Canadians, their long wait lines force many to come down here for treatment.

 

[ShokWaveRider]

Our only issue about living in a LCOL area would be access to services; HC services within a 3 -5 mile radius , Police, Fire, Upkeep of Roads, General Infrastructure etc. By definition if you put less $$$ into the area where you live, then something must suffer. Being older we are not effected by poor schools, but Access to HC hospitals and general other services that we take for granted where we live now, that contribute to our safety and overall Quality of life would be an ongoing concern.

 

[NW-Bound]

It's amazing how home prices vary all over the country. Decades ago, I thought homes in Phoenix were dirt cheap compared to California. Then, the Phoenix metropolitan grew and the price moved up, though still quite low compared to California.

Watching HGTV I am amazed at prices in other parts of the country, compared to Phoenix. The home my son bought 2 years ago is now worth $384K for 2,600 sq.ft., and the lot is small. A steal compared to California, but not cheap compared to other places. It's hot like heck here. Why so many people come?

 

[Teacher Terry]

Our local growth is driven by jobs being created and cheaper housing for California retirees.

 

[candrew]

Our local growth is driven by jobs being created and cheaper housing for California retirees.

Hi T.T.

Similar situation here in the Phoenix area with Cali retirees seeking lower cost housing. Job growth and housing market recovery in AZ has lagged behind much of the rest of the U.S. Has only recovered to pre-recession levels in the last couple of years.

 

[Teacher Terry]

Cand, locals are being priced out of the housing market. The average house is now 420k. A 2 bedroom apartment is between 1500-1900. Rents have went up 48%. Casino workers that don’t get tips and seniors are struggling. The crappy low cost housing near downtown has been ripped down and upscale housing will replace it.

 

[Chuckanut]

It's hot like heck here. Why so many people come?

It's hot, but it's a dry heat.

 

[Scuba]

Something happened today that reminds me of this thread. We are staying in South Palm Springs for 6 weeks to escape June Gloom and enjoy some real summer sun and heat. I know there is a Costco in Palm Desert. I looked it up on Google maps today and it said it would take 52 minutes - WHAT?? I guess we are spoiled having everything imaginable accessible within 15-20 minutes. We don’t even go to Costco that often, but there are a few items we like having around and had just assumed that it would be no problem to get them here.

 

[NW-Bound]

... It's hot like heck here. Why so many people come?

It's hot, but it's a dry heat.

Since retiring in 2012, we never ventured out during rush hours.

Then, last year, on an RV trek back from Alaska, we stopped for a night in Cal-Nev-Ari with the intention of making a mad dash back to Phoenix the next day to beat the traffic. Unfortunately, the motorhome got a mechanical problem, and I had to make a stop in Kingman for a mechanic to look at it. The result was a delay of a couple of hours, and we got back to Phoenix right at 5PM.

ARGHHH! It was as bad as LA traffic! The stop-and-go traffic on the freeway drove me insane. How do people drive to work every single day in a condition like that? I would just quit and eat ramen everyday if I could not afford better food.

Well, when I said it was as bad as LA, I remember the last time I got caught in traffic that bad in LA was also in an RV trip, but that time it was a Friday night. Yes, a Friday night at about 8PM. ARGHHH! And that was 6 or 7 years ago! Who knows how bad it is now.

OMG! I should be moving to Alaska. And stay out of Anchorage. It's expensive there, and they had traffic jam too. I experienced it.

 

[W2R]

We’re moving from a LCOL area to a MCOL area, though the only big difference is home prices. Living in a LCOL area in a cheap house for the past 26 years undoubtedly helped us retire early. Though I’d like to stay in a LCOL area and save $, we feel like we paid our dues and our WR in the MCOL area should still be very reasonable (not a big stretch). <—- To me that’s the key answer.

So we trade a dumpy town and horrible winters for a milder four season climate, a mile from a big lake, 2 hours to the mountains and 2-1/2 hours to the ocean and close to a major metro area with all the arts-culture-restaurants-shopping we need (even if it doesn’t match Chicago). We think/hope it’ll be worth it - finders crossed.

Sounds like a dream come true for you two! Hope you have a lot of fun exploring the new location; keep us updated!

 

[Cobra9777]

We live in a small suburb in North Texas, about an hour from DFW. Real estate is still reasonable but rising fast... ~$100-125/ft2 for an average house; $125 and up for higher quality. Suburbs closer to DFW are higher but nothing too drastic. Property tax is high at 2.4%, but no state income tax. Sales tax is 8.25%.

Home insurance is pricey due to very common roof damage from hail. Car insurance and umbrella seem reasonable.

We both have pre-Medicare retiree health insurance from our former employers. Cost is very reasonable at around $550/mo for the two of us. Deductibles, copays, and OoP max are same as when we were working. Good quality doctors, specialists, and hospitals are abundant and very close.

Gasoline is cheap because we are close to the refineries on the Gulf coast. Our electric averages about 10 cents per kWh. Natural gas is abundant and cheap.

We have dozens of grocery stores nearby, so prices are good. Proximity to Mexico means produce is always fresh and cheap. All the usual big box stores are here, except Costco is 25-30 minutes away.

I consider this LCOL but maybe on the high side. Property tax and home insurance are the two areas that seem quite high. But I suppose this is offset by the fact that we have no state income tax and you never have to pay for a new roof.

 

[Teacher Terry]

A friend of mine lives in burleson Texas and I was shocked at how cheap her beautiful house was. It’s on a acre.

 

[Chuckanut]

Since retiring in 2012, we never ventured out during rush hours.
<snip>
ARGHHH! It was as bad as LA traffic! The stop-and-go traffic on the freeway drove me insane. How do people drive to work every single day in a condition like that? I would just quit and eat ramen everyday if I could not afford better food.

Like you I avoid driving in rush hour unless it is unavoidable. Sometimes, one has to just put up with it. How? I find audio books make the time go by much quicker. Also, over time I have found certain routes and strategies that take some of the edge off driving in unavoidable traffic.

While I do not like the traffic or the moderate-high cost of living in my area, I view it as the price of progress. People (including my family members) are employed, needed services are available, and there are many things to do both indoors and outdoors, day and night. I am thankful I live here and can avoid the worst of the crowds, traffic, etc. Well, usually.......

 

[Rianne]

We’re moving from a LCOL area to a MCOL area, though the only big difference is home prices. Living in a LCOL area in a cheap house for the past 26 years undoubtedly helped us retire early. Though I’d like to stay in a LCOL area and save $, we feel like we paid our dues and our WR in the MCOL area should still be very reasonable (not a big stretch). <—- To me that’s the key answer.

So we trade a dumpy town and horrible winters for a milder four season climate, a mile from a big lake, 2 hours to the mountains and 2-1/2 hours to the ocean and close to a major metro area with all the arts-culture-restaurants-shopping we need (even if it doesn’t match Chicago). We think/hope it’ll be worth it - finders crossed.

Curious, what part of Chicago/Suburbs is considered LCOL? I understand you're moving from Chicago/near Chicago to better climate.

 

[NW-Bound]

... While I do not like the traffic or the moderate-high cost of living in my area, I view it as the price of progress. People (including my family members) are employed, needed services are available, and there are many things to do both indoors and outdoors, day and night. I am thankful I live here and can avoid the worst of the crowds, traffic, etc. Well, usually.......

There are reasons for crowded places to be that way, and job availability is perhaps the major factor. But once you reach retirement and no longer need a job, perhaps it is time to pack up, move somewhere less crowded and let someone younger move in and take your place.

If I just relocated 20 miles further out, for the same money I could have an even larger home, with more land to have a mini solar farm. It's just momentum and the dread of moving that keeps me from doing that.

I bought my 2nd home 15 years ago. I would not do that now, remembering all the work in moving furniture and setting that up. Too old and tired now.

 

[Chuckanut]

There are reasons for crowded places to be that way, and job availability is perhaps the major factor. But once you reach retirement and no longer need a job, perhaps it is time to pack up, move somewhere less crowded and let someone younger move in and take your place.

If I just relocated 20 miles further out, for the same money I could have an even larger home, with more land to have a mini solar farm. It's just momentum and the dread of moving that keeps me from doing that.

We 'could' do that. But......

I am walking distance to three very nice parks. I can buy a quart of milk or get an Rx filled within walking distance. My favorite coffee house is within walking distance. Costco, Trader Joes, and the supermarket are all not more than a 10 minute drive. Same with my doctor. I can take a bus into the downtown area of my city in 10 minutes or into the downtown area of the local Metropolis in 45 minutes. I get good FREE OTA TV reception so I don't need or want the cable company and its outrageous bills. I even have a choice of two Internet providers (yes, that is not enough for true competition but it is better than one). There are several local theaters less than 20 minutes from my home. I am 15 minutes by car from a state park that borders a lake and has forested walking trails.

Edited to PS: And, I am 25-45 minutes away from from an Intercontinental Airport from which I can easily fly to Joplin MO or Lower Slobovia. Thanks for the reminder NW-B.


Larger homes on larger lots = more expenses + more work for me = less time for travel and recreation.

Like I said.... We could do that.

 

[ShokWaveRider]

Anyone live near or around Las Vegas, Henderson, Summerlin or any other Las Vegas suburb? What a services and accessibility like there? We are thinking maybe looking out there for a change. Just looking, maybe a second place, maybe not.

 

[NW-Bound]

When we get older, we just fall into a rut and maintain status quo.

I do have a very comfortable 2nd home in the high-country boondocks. I did entertain the thought of retiring up there. Once I lived there a while, I realized the shortcomings. A grocery run would entail an 80-mile round trip to the next town. Same with Walmart, or Home Depot. Ditto for medical care. Forget about Costco and Trader Joe's. That's almost 300-mile round trip.

The medical care availability is a real problem at the boondocks home. Here at my metropolitan home, I have everything within a few miles, including access to an international airport.

But is there somewhere in between?

I visited relatives and friends living in the crowded areas of the LA metropolitan, and saw how they lived. They surely could tell me how they enjoyed living there, and would die there. But having no attachment to the place, would I want to move there now? Heck no.

Perhaps someone can say the same thing about my metro home now.

 

[ABQ2015]

Albuquerque would be considered MCOL by some and LCOL by others. The median home price is $200K but expect to pay at least $300K if you want to live in a nice, safe, and centrally located neighborhood. Property taxes are 1.1-1.3% and gross receipts taxes (taxes services as well as goods) are 7.875% but food/prescriptions not taxed. My state tax is about 4% and the state taxes Social Security. My utilities, not including lawn care or insurance, run about $250-300 pm but I have a large lawn to water. City services and access to shopping are adequate and similar to other medium/large sized cities. It can be a little hot in the summer but the weather is great.

My health insurance costs are low with federal retiree insurance but will increase to $400-500 pm at age 65 when I add Medicare Part B with the Level 2 IRMAA surcharge. But deductibles and copayments will be waived. Medical care is reasonably good in the area (but not in the rest of the state) but it can be difficult to find a PCP or get in with a specialist. I am on my third PCP in five years as one retired and another left the state. Even appointments with the PCP can take weeks. If I have an immediate problem, I go to Urgent Care. I know several people with more complex neurological or autoimmune conditions or cancers that go to neighboring states for treatment.

Like NW-Bound, I am tired of the city. So I am planning to move to a smaller city/large town in a higher COL area in the PNW for better quality of life and a new experience. From what I have read, healthcare is accessible but a high % of PCPs in that part of the country do not accept new Medicare patients. And one would need to go to Portland or Seattle for complex issues but I could afford that if necessary.

 

[Chuckanut]

I visited relatives and friends living in the crowded areas of the LA metropolitan, and saw how they lived. They surely could tell me how they enjoyed living there, and would die there. But having no attachment to the place, would I want to move there now? Heck no.

Perhaps someone can say the same thing about my metro home now.

+1

It's such an individual decision. I enjoy being on edge of a metropolitan area without being immersed in the middle of it. (Being retired and thus able to avoid the worst times in traffic, and the weekend/holiday congestion everyplace is a big help.)