The Most Affordable Places to Retire

Moving to a place with a lower cost of living can improve your retirement finances. If you sell a home in an expensive city and buy or rent in another city with more reasonable housing costs, you may be able to boost your retirement savings, retire sooner or enjoy a higher quality of life. A recent U.S. News analysis compared the 150 largest metropolitan areas in the U.S. as potential retirement spots. The study included data about housing affordability, happiness, desirability, retiree taxes, the job market and access to quality health care. These are the cities with the most affordable housing that also scored highly on the U.S. News Best Places to Retire in 2021-2022 ranking. Consider these affordable cities for retirement.

Youngstown is located within about an hour’s drive of both Pittsburgh and Cleveland, and it also marks the midpoint between New York City and Chicago. Although Youngstown was once a center for the steel industry, Youngstown State University is now the area’s largest employer. Retirees might enjoy a stroll through Mill Creek Park, which has two golf courses that provide discount rates to seniors and a “Cinderella” iron link bridge. The area’s housing costs are very affordable for retirees. The median monthly home cost with a mortgage is $1,060, and you can rent an apartment in Youngstown for a median of $681 monthly.

Relocating to a city with significantly lower housing costs than where you live now can allow your existing retirement savings to stretch further and improve your quality of life. It costs a median of only $1,058 per month to own a home with a mortgage in Fort Wayne. Renters in Fort Wayne pay a median of $771 monthly. You can research your family history at the Allen County Public Library’s extensive Genealogy Center or visit the Fort Wayne Museum of Art for free on Thursday or with a senior discount on other days. Fort Wayne has several farmers markets that supply local produce and live entertainment.

Many retirees are priced out of wine country in Napa Valley. But you can tend your own field of grapes and enjoy locally produced wines at a much more reasonable cost in the Yadkin Valley. The low housing costs make it easier to comfortably afford a home in the Winston-Salem area. Homeowners with a mortgage pay a median of $1,168 per month in housing costs. You can rent an apartment in Winston-Salem for a median of just $773 monthly.

Lexington is best known for its horse farms. You can watch horses race at Keeneland and the Red Mile, visit Kentucky Horse Park and enjoy regular horseback rides. Many of the streets are even named after famous racehorses. Lexington is also a college town that is home to the University of Kentucky. The area has a variety of golf courses with affordable prices as well as several unique bourbon distilleries. The low cost of living helps retirees enjoy all that horse country has to offer. A home in Lexington with a mortgage costs a median of $1,305 per month, and you can rent an apartment for a median of $867 monthly.

You need to enjoy winter to live in Rochester. The city has long winters filled with lake-effect snow. However, when the snow melts, the city comes alive with spring festivals, summer live music and delightful fall foliage. The area has multiple top colleges, including the University of Rochester and the Rochester Institute of Technology. The Strong Memorial Hospital of the University of Rochester provides health care services to the community. The area’s low housing costs make it possible to live well in Rochester on a modest retirement income. The median homeownership expense is $1,384 per month, and rent costs a median of $902 monthly.

Huntsville is located in Northern Alabama near the border with Tennessee. The area has a highly educated population and is a center for technology and engineering, thanks to NASA’s Marshall Space Flight Center, the U.S. Army’s Redstone Arsenal and the University of Alabama in Huntsville. The combination of high-tech jobs and a low cost of living gives many Huntsville residents a high quality of life. The median monthly cost to own a home with a mortgage is $1,286, and you can rent an apartment in Huntsville for a median of only $836 per month.

Toledo is located on the western edge of Lake Erie near the border with Michigan. Toledo has a four-season climate, including hot and humid summers and cold winters. Toledo’s low home prices make it easy to enjoy a high quality of life on a limited retirement budget. The median cost of homeownership is $1,244 monthly, including mortgage payments. You can rent an apartment in Toledo for a median of $752 per month. However, if you are willing to pay more, the city also has many historic homes and buildings, especially in the Old West End neighborhood.

Located about halfway between Chicago and Detroit, Kalamazoo is a smaller city with far lower home prices. The reasonable cost of living makes it easier to live well on a modest retirement budget. The median monthly cost for a house with a mortgage is $1,308. Renters pay a median of just $812 monthly. This college town is home to Western Michigan University, which has over 20,000 students. Kalamazoo is known for a wide variety of locally produced craft beers, and there are many breweries and pubs to explore.

This upstate New York city has four distinct seasons, including a high amount of snowfall in the winter. Syracuse can be an excellent place to retire if you enjoy college sports, and you can root for Syracuse University‘s many NCAA Division I athletic teams. The State University of New York Upstate Medical University is the largest employer in the area and provides medical services to the community. You can rent an apartment in Syracuse for a median of $853 per month. It costs a median of $1,353 monthly to own a home in Syracuse, including mortgage payments.

Hickory is best known for furniture manufacturing, and you can find one-of-a-kind items made by local skilled artisans at the Hickory Furniture Mart. Lake Hickory is located along the northern edge of the city and has over 100 miles of shoreline and opportunities for boating and fishing. The city also has year-round moderate temperatures and is located at the foot of the Blue Ridge Mountains. The low cost of housing helps retirees to live well on a modest income. Owning a home in Hickory costs a median of $1,038 per month, including mortgage payments. Renters pay a median of just $692 monthly to live in Hickory.

Located along a bay of Lake Michigan, Green Bay has a four-season climate with hot summers and cold, snowy winters. Green Bay residents report having a manageable economic life, according to a Sharecare survey. The reasonable housing costs make it easier to live on a modest retirement income. A home with a mortgage costs a median of $1,356 per month, and renters pay a median of $784 monthly. The area’s beloved Green Bay Packers provide senior discounts to visit the Hall of Fame and for other events and tours.

Located about halfway between Atlanta and Charlotte, Greenville has considerably more affordable housing than these larger cities. Homeowners making mortgage payments have a median of $1,200 in monthly housing costs. Renting a house or apartment allows you to test out a retirement spot before committing to a home purchase. It costs a median of $855 per month to rent a home in Greenville.

Florida’s state capital city is an affordable place to live for students and retirees. Tallahassee is a college town that is home to Florida State University, which has over 40,000 students, and Florida residents age 60 and older can audit classes for free. Retirees might also enjoy attending football games and other sporting events on campus. A home with a mortgage costs a median of $1,358 per month in Tallahassee. You can rent an apartment for a median of $991 monthly. While not located directly on the water, this northern Florida city is just a short drive to Apalachee Bay and the Gulf of Mexico.

Michigan’s state capital city has a diverse economy with state government and education jobs as well as several major insurance companies. The 5,200-acre Michigan State University campus is located in nearby East Lansing and has over 50,000 students. Retirees can root for the Spartans or attend performances or concerts on campus. Lansing has four distinct seasons with cold, snowy winters and humid summers. Housing costs a median of $1,284 monthly for those who are making mortgage payments on a home. The median rent for an apartment in Lansing is $858 per month.

Pittsburgh combines low housing costs with a high quality of life. The median cost of homeownership is $1,335 per month for those making mortgage payments. Renting is also an affordable option for retirees who don’t want the responsibility of maintaining a home. The median rent in the Pittsburgh metro area is $831 per month. UPMC Presbyterian Shadyside is the top-ranked medical provider in the area, according to U.S. News best hospitals data, and UPMC provides care at multiple locations in Allegheny County. Pittsburgh is an ideal retirement spot for retirees who no longer drive. Free public transportation on the bus and rail systems is available for residents age 65 and older.

You don’t need a fortune to retire in an artistic community if you live in Grand Rapids. The median homeownership cost with a mortgage is $1,275 per month. Renting an apartment can be a good way to test out a potential retirement spot and easily move on if the neighborhood doesn’t suit you. The median rent is $884 per month in the Grand Rapids metro area. Grand Rapids has several art museums, including the Grand Rapids Art Museum and the Frederik Meijer Gardens and Sculpture Park, but you can also view the public art on display throughout the city for free.

Chattanooga calls itself the “Gig City” because the area has a high-speed fiber optic network. Chattanooga is located along the Tennessee River in the foothills of the Appalachian Mountains. On a clear day, you can check out the view from the top of Lookout Mountain, which is easily accessible via the Lookout Mountain Incline Railway. Chattanooga’s low cost of living makes it possible to live well on a limited budget. The median monthly housing cost with a mortgage is $1,220. You can rent an apartment in Chattanooga for a median of $827 monthly. Chattanooga even has its own typeface, Chatype, which is used on signage throughout the city.

Myrtle Beach is a vacation destination located along South Carolina’s Atlantic coast. Popular attractions include the beaches, amusement parks and a boardwalk with a 200-foot SkyWheel. The reasonable cost of living makes it possible for retirees to live near the beach all year long. Housing costs a median of $1,290 per month for homeowners with a mortgage. You can rent an apartment in Myrtle Beach for a median of $959 per month. Those interested in golfing during retirement will appreciate the dozens of local courses, including greens designed by Arnold Palmer, Jack Nicklaus and Robert Trent Jones.

Scranton‘s low cost of living could help your retirement savings last longer. The median cost of homeownership is $1,294 per month including mortgage payments. You can rent an apartment in Scranton for a median of $789 monthly. A move to Pennsylvania might also reduce your tax bill if you are coming from a high tax state. Many sources of retirement income are generally not taxed by the state of Pennsylvania, including Social Security benefits and withdrawals from 401(k)s and IRAs taken after age 59 1/2. Scranton is just a two-hour drive from New York City, which allows residents to take advantage of big-city amenities and entertainment options without having to pay astronomical housing prices.

Living in a college town often has many perks for retirees. In Knoxville, the University of Tennessee allows adults 60 and older to audit classes for free and those 65 and older to enroll in classes for credit at the significantly reduced rate of $7 per semester hour. The University of Tennessee Medical Center provides health care services to the surrounding community. The median housing cost in Knoxville is $1,223 per month for homeowners with a mortgage and $833 for renters. The state of Tennessee doesn’t tax wages and salaries, but it does tax dividends and interest, although low-income people age 65 and older might be exempt.

Ocala is a less-expensive alternative to Florida’s beach destinations. This inland Florida city has a low cost of living and affordable housing. A house with a mortgage costs a median of only $1,099 per month in Ocala. Renting costs even less, with a median price of $896 monthly. There’s no state income tax in Florida, which means retirees who work get to keep more of their earnings. Ocala is best known for its award-winning horses and equestrian events and competitions. The city is also an ideal base from which to explore the Ocala National Forest.

While it’s certainly possible to splurge on Asheville’s high-end culinary experiences, the area’s natural beauty comes free of charge. There’s no entrance fee for Great Smoky Mountains National Park or to drive along the scenic Blue Ridge Parkway. The mountainous terrain provides numerous waterfalls and dramatic fall foliage. Outdoor enthusiasts will find plenty of opportunities for mountaintop summit hikes and mountain biking. Many of Asheville’s artists, writers and musicians are able to earn an income from their creative pursuits. Asheville scores high marks for affordable housing, with a median monthly mortgage cost of $1,316 and a median monthly rent of $911.

Waterfront property doesn’t have to be expensive if you consider retirement in this inland Florida area with 38 lakes. Lakeland is located within an hour’s drive of both Orlando and Tampa, but has far less expensive housing than these larger cities. Retirees with a mortgage pay a median of $1,251 per month to own a home in Lakeland. Renters are charged a median of $978 per month. Lakeland retirees enjoy mild winters, but must watch out for the humid summers and accompanying air conditioning bills. There’s no state income tax in Florida, which helps to keep costs low for retirees with part-time jobs.

If you’re looking for an affordable Florida beach retirement, consider Pensacola. This western Florida city is located on the Pensacola Bay near the Gulf of Mexico and the border with Alabama. You could spend your retirement years fishing, sailing or strolling along white-sand beaches spotting dolphins and sea turtles. Nearby beaches include Pensacola Beach, Perdido Key and the Gulf Islands National Seashore. The median homeownership cost is $1,305 per month with a mortgage, and renters are charged a median of $1,015 monthly. There’s no state income tax in Florida, which can benefit those who plan to work in retirement.

Retirement near the beach can be enjoyed on a modest budget in Daytona Beach. Homeowners with mortgages pay a median of $1,282 per month. Renting an apartment in Daytona Beach costs a median of $1,076 monthly. But don’t expect a quiet retirement in this dynamic city that contains the headquarters for NASCAR and hosts several large motor sports events each year. Cars can even be driven on some of the white, sandy beaches.

1. Daytona Beach, Florida.
2. Pensacola, Florida.
3. Lakeland, Florida.
4. Asheville, North Carolina.
5. Ocala, Florida.
6. Knoxville, Tennessee.
7. Scranton, Pennsylvania.
8. Myrtle Beach, South Carolina.
9. Chattanooga, Tennessee.
10. Grand Rapids, Michigan.