Background
I don't think luxury exist. Especially not in a world where "luxury" is marketed to the masses and then sold at a discount on Black Friday. Instead, I think what is in fact luxury is "exclusivity". Meaning having access to a good, product or service that is limited to the point that typical supply and demand economics are irrelevent. As true exclusivity isn't just price or physical proximity but also scarcity that cannot be paid for. To that end, it is my thesis that "luxury" real estate will give way to exclusive real estate.
What is the most exclusive real estate?
My economic thesis is that the most exclusive real estate are small towns. My cultural theory on capitalism is that small towns offer the ability for a single developer to pivot away from building so called luxury high-rise condos on South Beach or Manhattan for $800M to $2B dollars and instead purchase entire towns (less than 5k people) for less than $50M; thereby locking in an exclusive market.
What if you could go back to Mayfield from Leave It To Beaver or even the simplicity of the Simpson's Springfield? Skipping the entirety of zoning and permiting boards simply by purchasing entire towns and developing them by leaving them "undeveloped"?
As Boomers age and more and more people retire, small towns will become exclusive real estate markets as developers realize that by leaving the small town more or less locked/paused in time, they're able to maximize return. With that in mind below are 5 reasons (not including the thesis in above) why Small Town america is the future of "luxury" real estate.
Samson
Top 5 Reasons to Retire in Small Towns (3,000-5,000 Population) Instead of Big Cities
For decades, the allure of big-city living has captivated retirees seeking cultural vibrancy and convenience. Yet, a growing number of retirees are discovering a different kind of paradise in America’s small towns. With populations ranging from 3,000 to 5,000, these close-knit communities offer benefits that large cities simply can’t match. Here are the top five reasons why retiring in a small town may be the perfect choice for you:
1. Affordability Without Compromise
The cost of living in small towns is significantly lower than in metropolitan areas. Housing—the single largest retirement expense—is dramatically cheaper, whether you’re purchasing a home or renting. For example, a charming three-bedroom house in a small town might cost the same as a modest apartment in a major city.
In addition to lower housing costs, day-to-day expenses such as groceries, dining out, and utilities tend to be more budget-friendly. Stretching your retirement dollars further means you can maintain or even elevate your standard of living.
2. A Slower Pace, Less Stress
Big cities are often synonymous with noise, traffic, and a constant hustle that can be exhausting. Small towns, on the other hand, offer a slower, more peaceful pace of life. Imagine trading rush hour commutes for leisurely walks in the park, or crowded supermarkets for friendly local shops where the cashier knows your name.
This relaxed environment not only improves your quality of life but can also have tangible health benefits. Studies have linked lower stress levels with better heart health, improved sleep, and greater longevity—all crucial during retirement.
3. A Sense of Community
One of the greatest appeals of small towns is their strong sense of community. Unlike the anonymity that often comes with urban living, small-town residents tend to look out for one another. Community events, local festivals, and volunteer opportunities provide endless ways to build meaningful relationships.
For retirees, this sense of belonging can be invaluable. Feeling connected and supported by neighbors can stave off loneliness, a common challenge in retirement, and create a network of friends who enrich your life.
4. Proximity to Nature
Most small towns boast easy access to natural beauty, whether it’s rolling hills, serene lakes, or dense forests. Retiring in such a setting offers countless opportunities for outdoor recreation, from hiking and fishing to gardening and birdwatching.
Spending time in nature is proven to boost mental health, reduce anxiety, and promote physical activity. Plus, the stunning views and tranquil surroundings provide a daily reminder to savor life’s simple pleasures.
5. Safety and Security
Small towns typically have lower crime rates than urban areas, making them ideal for retirees who value safety and peace of mind. Walking to the local diner, leaving your windows open, or letting your grandchildren play outside becomes less of a concern in these close-knit, low-crime communities.
This added layer of security allows retirees to relax and focus on enjoying their golden years without the stress of urban risks like property crime or random violence.
The Best of Both Worlds
While small-town living offers numerous advantages, it doesn’t mean sacrificing the conveniences of city life. Many small towns are within a short drive of larger cities, allowing retirees to enjoy museums, theaters, or specialty medical care as needed. With modern technology, retirees can also stay connected to family, friends, and global events without ever leaving home.
In a world that often glorifies the fast pace of big cities, small towns offer a compelling alternative: a simpler, richer, and more connected life. For those nearing retirement, the charm and practicality of small-town living might just be the key to making your golden years truly golden.