The first baby boomers turn 60 in 2006, and researchers estimate that, nationwide, during the next 18 years about 400,000 of them -- with an average of $320,000 to spend on new homes -- will retire beyond their state borders.
UT's Institute for Public Service (IPS) and Institute of Agriculture (UTIA) recently completed a study about the long-term economic impact these retirees -- termed "in-migrant retirees" (IMRs) -- have on a rural community. The idea for the study came out of community forums on rural development that IPS hosted in 2006 for the Southern Growth Policies Board. After facilitating those forums, Charles Shoopman, director of statewide initiatives for IPS, asked UTIA to help research the trend and its effects on Tennessee’s economy.
Many retirees are already choosing to make their homes in Tennessee. Census data from 1995–2000 indicates Tennessee ranked seventh nationally, with nearly 10,500 more people age 65 and older having moved into the state than having moved out. Cumberland County is already home to an estimated 11,000 IMRs, representing 21.5 percent of the county’s total population.
Using Cumberland County as an example, IPS collaborated with William Park, Christopher Clark, Dayton Lambert, and Michael Wilcox Jr. at UTIA to research the long-term effects IMRs have in a rural community.
UTIA researchers collected information through personal interviews, telephone surveys and focus group discussions with more than 700 Cumberland County residents. Those polled included long-time local residents, as well as those who moved to the area from outside Tennessee.
The study tracks the impact retirees have made in Cumberland County since the 1960s, when two large residential developments first started attracting out-of-state retirees to the rural area. UT researchers examined the effects in-migrant retirees have on employment, local government finances, health care, public education and social and quality-of-life issues.
Through the study, Cumberland County residents identified the positive, negative, and mixed impacts IMRs have had on the region. Favorable changes included an increase in the number and variety of employment opportunities; a higher average income for local households; a large fiscal surplus for Cumberland County and the City of Crossville, allowing for increased spending on government services and lower property tax rates; and a growth in the health care industry, providing job opportunities and increasing the availability of specialized services.
Both long-time local residents and IMRs now living in Cumberland County agreed that increased traffic congestion is the most detrimental impact of IMRs on the area.
Respondents noted that land and housing prices have increased, employment has shifted from manufacturing to retail and service sectors, and social values have changed. But, locals and IMRs have mixed feelings about whether these changes are good or bad.
IPS consultants will share details of the report’s findings with local government and industry leaders statewide in an effort to help cities, counties, and businesses understand the long-term economic impacts of a changing population.
The report summary is available at www.ips.tennessee.edu. The full report will be available at the website in early spring.
