Texas, the new Florida, lures seniors with sun, low cost living

After trying out Atlanta, Miami and Pasadena, Calif., Lilian Junco decided this was the place to retire. Being near her son was the first attraction, but soon she was drawn in by the same combination of features that has lured tens of thousands of others from out of state -- Gulf Coast living, plus super-low costs.

With some of the country's cheapest prices for housing, gas and food, no state income tax and one of the most resilient economies in the nation, Galveston and other parts of the Lone Star state are emerging as the new Florida.

This week, when Florida demographers announce new population figures, they are expected to reveal a decline of 57,000 over the 12 months ended in April -- the first annual drop since the 1940s. Much of the loss has come in parts of southern Florida that long attracted retirees.

Stanley Smith, the University of Florida demographer who produces official population reports for the state, says the latest recession will make Florida's cost of living more competitive. Home prices have fallen by as much as 60% in parts of the state. What's not yet clear is how Texas will fare with Baby Boomers, whose retirement path remains undefined, experts say.

The oldest of that generation is 63 this year. The recession and loss of wealth may hold back their migration, and many Boomers may look to settle in places where they can find part-time work.

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Texas, the new Florida, lures seniors with sun, low cost living - The Baltimore Sun - October 30, 2009