Homeownership may be key to achieving early retirement. A growing movement called “FIRE,” which stands for “Financial Independence, Retire Early”—an idea outlined in author Joe Dominguez’s 1992 bestseller Your Money or Your Life—lays out a way to retire early in your 30s or 40s. The plan focuses on stowing away 40% to 70% of your income, and then making smart investments to grow it. “Owning a home helps you build equity, forces saving—and, if you buy correctly, you’ll have your home paid off quickly,” Ilyce Glink, founder and CEO of BestMoneyMoves.com, told realtor.com®.
To find FIRE-friendly places that better your chances for an early retirement, realtor.com®’s research team analyzed 150 metro areas based on several factors, including home prices, cost of living, property taxes, and income potential. Topping realtor.com®’s list of places for the best chances for an early retirement are:
Huntsville, Ala.
- Average salary: $54,630
- Median home sale price: $202,900
Knoxville, Tenn.
- Average salary: $45,130
- Median home sale price: $192,500
Dayton, Ohio
- Average salary: $50,100
- Median home sale price: $146,000
Peoria, Ill.
- Average salary: $51,510
- Median home sale price: $135,000
Indianapolis
- Average salary: $49,380
- Median home sale price: $209,109
Beaumont, Texas
- Average salary: $49,150
- Median home sale price: $163,125
Winston-Salem, N.C.
- Average salary: $45,850
- Median home sale price: $178,000
Source: “Quit the Rat Race Now?! 10 Cities That Put Early Retirement in Reach,” realtor.com® (Nov. 4, 2019)
