This article takes a look at the college town perfect for retirees. Check out our full list of 30 College Towns Perfect for Retirees.
Affordable Retirement: College Towns vs. University-Based Communities
According to data from the National Center for Education Statistics (NCES), there are 5,999 colleges throughout the US. Moreover, there are over 100 university-based retirement communities (UBRCs). UBRCs are communities that combine senior care with learning opportunities from local colleges and state universities. They are a useful way for seniors to engage in lifelong learning, all while enjoying the company of similar aging individuals. According to Assisted Living, most URCs require a one-time entrance fee estimating around $200,000. Moreover, monthly fees range between $2,000 to $5,000 on average which covers for areas such as dining, housekeeping, and additional amenities.
Some of the best university retirement communities include those created by Duke University, Stanford University, Dartmouth College, and several other top American colleges. These are some of the best colleges for retirees, offering seniors a chance to engage in continuous learning. While URCs can be an effective way to engage in learning, college towns are another option seniors can explore for retirement. Besides lifelong learning, college towns help seniors enjoy abundant arts and culture, vibrant cultural diversity, endless opportunities for dining and shopping, and even great healthcare. Choosing to live in such towns is a better option for seniors who cant afford the fees associated with living in a university community. After all, the median retirement savings for Americans is a mere $87,000, not even enough to cover for the entrance fees for most URCs.
Since many retirees don’t have enough saved, many of them are on the move in search of cheaper pastures. According to a report from marketplace Hire a Helper, more than 338,000 US residents moved to a new home in 2023. The top states retirees are moving to are Florida, South Carolina, New Jersey, Texas, and Washington. Many of these states are also home to popular college towns. Seniors can choose to live in residential homes in a college town or retire in a senior living community in the area.
One such leading builder of active adult communities is Del Webb, a subsidiary of PulteGroup, Inc. (NYSE:PHM). Since their founding in 1950, PulteGroup, Inc. (NYSE:PHM) has developed over 750,000 homes in the US. It is one of the largest home builders in the country operating in 40 major cities. The firm’s market cap is $24.47B and has a forward P/E ratio of 9.61. The company’s management has effectively maintained operational stability despite the fluctuations in the home building market. While the industry faces ongoing uncertainties, PulteGroup Inc has successfully managed to keep its backlog steady while also increasing new orders. Since 2021, the company’s operational teams have directed around $14 billion toward land acquisition and development initiatives, with plans to invest an additional $5 billion through 2024.
Notably, Sam Reid from Wells Fargo and Barclays analyst Matthew Bouley maintain a Buy rating on the stock. By the end of the first quarter, 39 hedge fund managers held long positions in PulteGroup, Inc. (NYSE), with total stakes valued at $1.67 billion, according to Insider Monkey’s database. The most dominant shareholder in the company is Greenhaven Associates with a position worth $684.014 million. Its Q1 2024 results reveal that the company reported net income of $663 million, or $3.10 per share.
“PulteGroup reported outstanding financial results that included first quarter records for home sale revenues of $3.8 billion, gross margins of 29.6% and earnings per share of $3.10, all of which helped to drive a return on equity* of 27.3. Our strong financial performance reflects both favorable demand conditions and our balanced operating model that allows us to more effectively meet the individual needs of first-time, move-up and active-adult consumers”.
-PulteGroup President and CEO Ryan Marshall.
While we acknowledge the potential of PulteGroup Inc (NYSE:PHM), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PulteGroup Inc (NYSE:PHM) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Katherine Welles / Shutterstock.com
Methodology
To compile the list of College Towns That Are Perfect for Retirees, we began by identifying the top college towns in each state through a consensus-based approach. We then ranked these towns based on their cost of living, livability scores, and distinctive amenities. The towns are listed in ascending order, from the lowest to the highest scores. It is important to note that some of the towns may host more than one college.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see the details here).
Here is the college town perfect for retirees:
1. Oxford, Mississippi
Insider Monkey Score: 58
Home to: University of Mississippi
IM Cost of Living: 92
Livability Score: 87
Besides the aura of intellectualism that Oxford boasts, the city is also famous for its Southern hospitality; boutiques, galleries, and an overall Cosmopolitan ambience. The University of Mississippi also has educational programs for seniors, offering them a chance to engage in lifelong learning. There are communiversity courses as well, which are non-credit courses to learn and experience new things-all without the hassle of grades and test papers.
At Insider Monkey, we delve into a variety of topics, ranging from the best places to retire to the best MBA programs; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Check out our full list of 30 College Towns Perfect for Retirees.
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Disclosure: None. This article is originally published on Insider Monkey.
