Is South Carolina a good place to retire?
Today I’m going to share with you why South Carolina might be a good place for you to retire, but I’m going to give you a balanced perspective because just like in life not everything is perfect.
Now there are many things to consider when thinking about retiring to South Carolina like cost of living, taxes, healthcare, cost of homes, the weather and of course active adult communities. And I’m going to explore each of these topics in this post.
First the cost of living
This is what Patch.com has to say about retiring in South Carolina, but first here is something to keep in mind when comparing states to live in according to Patch.
Because cost of living and life expectancy differ from state to state, expected spending throughout retirement varies as well. States with higher retirement spending estimates tend to have either higher average cost of living, longer average life expectancy, or both – and vice versa.
Now In South Carolina, average retirement spending stands at an estimated $932,705 – the 12th lowest in the country.
Next, a look at what Upnest has to say about the cost of living here With a population of just over five million people, SC is the 40th largest state. Which means we don’t have a very dense population and that translates into a lot less hustle and bustle especially around the more metropolitan areas. Not only is South Carolina an affordable state to live in, it’s also great for retirement living. In fact, a survey by Retirement Living ranked South Carolina as the #4 best state in the US to retire to. They went on to say Many people choose to move to South Carolina for its affordable general cost of living. The cost of living in South Carolina is 11.5% lower than the U.S. average, and home appreciation is up 11.4% in the last year.
Now looking at another survey, this time from the Market research firm Top Data South Carolina was ranked as the #6 best state to retire, according to their recent study. Which was conducted to help individuals find the place where they would be most happy, following their working years and into their transition to retirement. Their study revealed that the category with the highest relevance in retirement was affordability followed by entertainment, healthcare, safety and wellness.
And just a little side note here when it comes to cost of living is one of the questions I am asked often, and that is what can we expect as far as ongoing utility expenses go and of course this varies from city to city or town to town but let’s take a look at utility expenses first
As a renter or homeowner in South Carolina, and it really doesn’t matter which one, you’ll probably have to pay for utilities. These basic necessities include electricity, water, gas, sewer, and internet services. The average electric bill for homes in the state is $145, while the average gas bill is around $100. Expect to pay a little over $32 every month for water, and $37 for sewer costs and around $52 for internet on average.
Just to give you an example, of what you can expect, depends on where you decide to settle down.
If you live in a bigger city such as Columbia, utilities may be slightly more expensive than if you live in a remote suburb. For example, for a 915 square foot home in Columbia, SC, basic utilities — electricity, heating, cooling, water, and garbage — runs about $168 per month total.
In Greenville, you’ll pay a little over $92 for basic utilities for the same size home, which is considerably less. For internet service, expect to pay $56.25 per month.
So to recap Upnest puts South Carolina at #4 spot and Top Data puts it at #6 spot for retirement.
Now lets look at taxes
Our friends over at Kiplinger rank our state as a Most tax friendly state. The South Carolina extends some real Southern hospitality to retirees by offering a charming collection of income tax breaks.
To start, Social Security benefits are completely exempt. As well as Military Retirement Income. In addition, taxpayers age 65 or older can exclude up to $10,000 of retirement income. Seniors can also deduct $15,000 from other taxable income, like retirement plans ($30,000 for joint filers).
Plus, the top income tax rate is going down. Beginning with the 2023 tax year, and each year thereafter until it equals 6%, the top rate will decrease by 0.1% if general fund revenues are projected to increase by at least 5% in the fiscal year that begins during the tax year. By the way the voters have spoken and the bill did pass by an almost 2 to 1 margin, so taxes will be going down for everyone in the state.
One more piece of tax information should be aware of if you are 65 or older and retiring in South Carolina you are not required to file a South Carolina income tax return if you are a South Carolina resident aged 65 or older and your filing status is single, qualifying widow widower, or head of household in your gross income is less than the federal gross income filing requirement plus the age 65 and older deduction.
Moving on it’s time to look at Healthcare here in the Palmetto state. And Ummmmm…there is no way to sugar coat this, but South Carolina Ranks 17th worst in the country according to 24/7 Wall St.
I guess I could have said that we actually rank right up there in the bottom half of all the states….but let’s not go there either. Fact are facts. And speaking of facts, the Health Sciences of South Carolina has issued a report in which it states South Carolina is one of five states that showed the greatest improvement in healthcare quality, according to a new report from the research arm of the U.S. Department of Health and Human Services. The State Snapshots report, is the latest annual examination of state-by-state quality data released by the Agency for Healthcare Research and Quality. The report summarizes healthcare quality in three dimensions: care type, care setting, and clinical condition.
So it seems like things may be improving. And in my opinion, they apparently know there is room for improvement, and they seem to be taking corrective measures.
Now here’s another report and this time it is from U.S. News and World Report evaluated 89 hospitals in South Carolina. Eight meet high U.S. News standards and are ranked in the state. U.S. News also ranked hospitals in the Charleston, Charlotte, Columbia and Greenville metro areas. The number 1 hospital in South Carolina is MUSC Health-University Medical Center. With its main campus in Charleston SC and it has more than 100 outreach sites and ten hospitals in the state.
Something also to be aware of South Carolina residents are no longer required to have health insurance under the Affordable Care Act (also known as Obamacare). South Carolina state law also does not mandate individual insurance or require employers to offer group health plans to their employees.
And for you veterans there are 12 VA community-based outpatient clinics throughout South Carolina
Ok let’s swing on over to the real estate market here in South Carolina, and of course it goes without saying that the market is still in a state of flux and is not reacting the way that many people had anticipated it to do so thus far in 2023.
In December Zillow release the study that showed out of 15 metro areas in South Carolina that’s seven are projected to see home price gains between November 2022 and 2023 in the states largest city Charleston is projected to stay flat and the remaining metro areas are expected to see price drops in the range of 0.1 to 3.8%
I can tell you that personally I represented two buyers in the Charleston area and negotiated both of their home purchase prices down $25,000 from the Sellers asking price.
The metro forecast data released by Zillow in December last year showed that out of 15 metros in South Carolina, 7 are projected to see home price gains between November 2022 to November 2023. In Charleston, SC, home prices are projected to remain flat. The remaining 12 metros are expected to see a drop in home prices in the range of 0.1 to 3.8%. Please consume and digest this information carefully given it’s source.
Taking a look back at recent history here are some key takeaways from what happened in 2022 the typical home value in South Carolina was $301,659 with a one year value change of plus 11%, to put that into perspective the typical home value in the United states in 2022 was $356,819 with a value change of plus 3.5%
In South Carolina 23% of sales were over the list price 54.5% of sales were under the list price and there was a median days on the market until pending of 20 days.
Now the Good News and the Good News
The US housing market has begun to recover after hitting a low point in the second week of November. We’re not out of the woods yet, but homebuyers are coming off the sidelines:
Some agents are even reporting that bidding wars are back in some markets, including Seattle, central Florida and Richmond, VA.
The reason for this? Well, Homebuyers have started to Return as Power Dynamics Shift Toward Their Favor. Buyers have acclimated to the 6% mortgage rate, which feels like a relief after watching affordability erode as rates surpassed 7% in the fall. Some buyers are even scoring a rate that starts with a five, an important psychological threshold, while others are opting for an adjustable-rate mortgage or getting a rate buydown as a seller concession. Our buddies over at Redfin have just posted this on their site this week and I quote “Mortgage applications are up 28% from early November as the average 30-year-fixed mortgage rate has declined to 6.15% from its November peak of 7.08%—the largest 10-week decline since 2009. That has sent the typical homebuyer’s mortgage payment down 10% (about $180) since fall. Pending home sales rose 3% in December from November on a seasonally-adjusted basis—the first month-over-month increase in 14 months.”
So this is good news if you have been holding off on buying or looking to retire in South Carolina, lending rates are becoming more affordable and sellers are loosening up and playing nicer with potential buyers.
The longer range outlook is that The housing market will likely continue to thaw in the coming weeks and months, especially if inflation and mortgage rates ebb further, but there’s still a long way to go. Some neighborhoods will see fierce bidding wars while others hear crickets. The market is warming up, but is still cold compared to the pandemic homebuying frenzy and even pre-pandemic times. It may never again hit the meteoric sales of 2021.
Next up the Weather
Ahhhhh the weather, to me there is nothing more rewarding about living here in South Carolina then the weather. There 4 seasons in SC. And the weather was one of the biggest reasons I moved here. Yes its hot during the summer it cools down in the Fall, can get a bit chilly in the winter. We can get an occasional flake or two and may need to cover up our landscape plants but that rarely lasts for more than a few days, and yes gas fireplaces and fire pits are a thing here and then there is Spring Ahhh yes spring is my second favorite time of year right behind summer if that makes sense…I just like it warm. Flowers start to bloom, foliage reappears and the waters in the Atlantic start to rise.
Just to give you an idea of the average temps across the state lets take a look Lets start in the upstate that’s where towns like Clemson and Greenville are, the avg high temp is 78 and the low 56, In the Midlands, where Columbia and Aiken are the average high there is 78 and low is 56, in Pee Dee the Myrtle Beach area the average high is 73/52 and in the Lowcountry That would be Charleston and Hilton head, the high is 76/56. So you can see the average temps moderate throughout the year. The nice thing for most folks who live here is that you do still get your sweater weather and your bathing suit weather.
#6 And here is a bit of information about Active adult communities.
There are over 150 active retirement communities in The Palmetto State, it’s clear that this has become a hotspot for relocation after age 55. Here are my picks of the top 5 communities in terms of lifestyle, location, affordability, and safety.
First Del Webb at Nexton Del Webb Charleston at Nexton is a gated 55+ neighborhood in Summerville, South Carolina. Located within the master-planned community of Nexton, the community provides low-maintenance single-family homes across a variety of unique floor plans. Del Webb Charleston at Nexton offers homebuyers an expansive 25,000 square-foot clubhouse that is the community’s social and physical hub. This luxurious clubhouse features indoor amenities like a state-of-the-art fitness center, gathering room, and even an indoor heated pool.
Let’s head on over to Sun City Carolina Lakes
Sun City Carolina Lakes is an active-adult community that sits on the banks of the Catawba River in South Carolina, six miles south of Charlotte’s city limits. Some 5,000 people from across the nation now call Sun City their home. The heart of their community is its two large community centers. Their indoor space exceeds that of the next three 55+ communities combined. More amenity space means more choices of daily events to keep you entertained, enlightened, and physically active. In addition, a public 18-hole golf course winds its way around ten lakes, around homes, and past miles of walking trails.
A bit down the road from SUN City Carolina Lakes is Tree Tops
It is a gated community exclusively for the Active Adult life, surrounded by nature and inspired by endless possibilities. Tree Tops’ resort-style amenities are nestled into a natural setting along the 10 acre lake. From the lakefront amphitheater and intimate village of activity cabins to the soaring Tree House club and pool pavilion, there are plenty of opportunities for homeowners to gather, play and celebrate. Located less than 45 minutes from Uptown Charlotte, Tree Tops provides the perfect balance of resort style living with big city entertainment and dining.
Heading to the Lowcountry is where you will find Sun City Hilton Head a Del Webb Community
Sun City Hilton Head, was awarded #1 by 55places.com again in 2021! Within the private gates of Sun City Hilton Head active adult community, you’ll find resort-style amenities and activities, including 3 golf courses, multiple fitness centers and pools, and a performing arts theatre. Sun City Hilton Head is far and away the state’s largest retirement community, with over 10,000 homes. For those looking to have all the conveniences right in their neighborhood, this area offers up: a 45-acre town square with resident-only amenities, and just beyond the gates, shopping, restaurants, grocery stores, and healthcare are within a five-minute drive.
My 5th choice is Latitude Margaritaville also in Hilton Head
The Margaritaville brand is huge in retirement living, with three campuses in the southeast United States. The Hilton Head area community will not disappoint, and with construction ongoing, owners can build a new home to suit their preferences. Residents can choose between single-family homes and attached cottages, and all homes are built through the trusted Minto development company, as with the other two Margaritaville settlements.
Sporting courts, a bandshell, kayaking, and on-site retail are just a few amenities and activities here, and with a pet spa and dog park, furry family members may enjoy the retirement life here just as much as their owners do.
