Two unstoppable forces — time and taxes — will keep the Sussex County housing  market growing for years to come. Low resale inventory and high property taxes in the Northeast and Mid-Atlantic states will keep retirees flowing to Sussex County, Delaware for its affordable home values, age-designed housing, low taxes, and low cost of living.  We can be certain that this trend will continue as Baby Boomers will continue to age and retire, and because taxes in the Northeast and Mid-Atlantic aren’t going down.

The facts are convincing:

  • Sussex County is one of the few markets with the housing stock to satisfy the demand of the growing retiree market.  More than 10,000 Baby Boomers turn 65 every day and many of them are ready to retire.  In Sussex County, over 3,000 housing units are permitted annually and most of those home designs are targeted to the retirees or pre-retirees who plan to retire in two to seven years.
  • Empty nesters who want to move should easily be able to sell their existing home. Low inventory levels in the Northeast and Mid-Atlantic are likely the result of rising interest rates and less housing turnover by empty nesters who are choosing to stay in their family home longer. We believe this low inventory trend will continue as mortgage rates raise over time.
  • Rising mortgage rates are less relevant to those buyers fleeing high-tax states due to property tax savings and all-cash purchases. Currently, rates remain low and are not having a major effect on home turnover. However, when rates rise, Sussex County’s low cost of living will continue to be a major draw.
  • High property taxes in the Northeast are more painful due to the $10,000 limit placed on deductions for state and local taxes. Homeowners in the Northeast could be paying six- to eight-times the property taxes than a typical homeowner in Sussex County as shown in the comparison below.

Listing source: Redfin.com