5 US Cities Quietly Becoming Top Retirement Towns
Don’t want to retire to Naples, Florida, and spend your entire nest egg on a house and insurance?
Get off the beaten path and explore hidden-gem retirement towns that offer an outstanding quality of life without breaking the bank.
We looked at Zillow data to find you five cities where the living is easy and often the costs are, too.
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1. Huntsville, Alabama
Want larger-city amenities with smaller-town prices?
“The cost of living is low, the housing market is still reasonable and the infrastructure has gotten genuinely good over the last decade with the tech and aerospace growth there,” said real estate expert Andrew Gardner of Leap Properties. “It’s not the Alabama people picture.”
Indeed, the average home costs $287,569 according to Zillow, 21.4% lower than the national average of $366,019. Alabama also doesn’t tax Social Security benefits or pension payments, making it tax-friendly for retirees.
But don’t let the affordability fool you. Huntsville still offers excellent healthcare and amenities, from dining to outdoor recreation. And retirees will get plenty of time outside, between the mild winters and easy access to nature such as the Monte Sano State Park and Green Mountain.
Looking to spend a little more in exchange for coastal living? Check out Fairhope, overlooking Mobile Bay, with its charming downtown and high percentage of residents over 65.
2. Las Cruces, New Mexico
Las Cruces too offers pleasant winters, plus excellent hiking in the Organ Mountains for those staying active.
Retirees have enjoyed the golfing in Las Cruces for decades and the artsy, college town vibe. Yet it remains affordable, with homes averaging $290,023, based on Zillow data. New Mexico doesn’t charge state inheritance taxes and offers some deductions for retirement income.
The dry desert air agrees with many retirees and the elevation of around 4,000 feet helps moderate the heat. And the town gets plenty of sunshine, with roughly 300 sunny days a year.
3. Chattanooga, Tennessee
Nestled in the foothills of the Appalachian Mountains on the Tennessee River, Chattanooga has earned the nickname “Scenic City.” Retirees enjoy quick access to hiking, boating, fishing and golf.
Home prices average $319,579 as per Zillow, making it 12.7% cheaper than the national average. It also doesn’t hurt that Tennessee charges no state income taxes, further stretching your retirement dollars.
“This is the town I recommend to people who want to enjoy four seasons, mountain access and tax breaks, but who don't want to spend the money that Nashville or Asheville will cost them,” said housing expert Sain Rhodes of Clever Offers.
The city also offers great healthcare, such as the Level 1 Trauma Center of Erlanger Health System.
4. Lewes, Delaware
If you want seaside living with Victorian charm, within three hours of four major East Coast cities, check out Lewes.
The historic downtown is quaint and beautiful and you can hop on the Cape May Lewes Ferry to pop over to its sister town across the bay any time. Extensive walking and biking trails connect Lewes to Rehoboth Beach and Cape Henlopen State Park, and retirees get access to outstanding healthcare.
“If you want a coastal town but you’re wary of Florida's heat and hurricanes, Lewes is a walkable historic town with access to the Atlantic beaches as well as the strong Beebe Healthcare,” Rhodes said.
As for affordability, don’t expect to stretch your nest egg in Lewes. Homes average $588,290, Zillow reported, making it a pricier destination. But that hasn’t stopped retirees from flooding in, as the average age has reached 67.2, according to Delaware Demographics. If you're selling a home of equal or greater value, it might be a charming proposition with no sacrifices required.
Also on the plus side, Delaware charges no sales tax and no estate or inheritance taxes. Residents 60 and over can exclude up to $12,500 in retirement income from state income taxes.
5. Sioux Falls, South Dakota
Prefer a northern climate? Take a closer look at Sioux Falls.
Homes average $329,723 in the Zillow data set, making the town 10% cheaper than the nationwide average.
“Plus, Sanford Health and Avera Health are the two largest healthcare systems in the upper Midwest, both headquartered in Sioux Falls,” said Brennan Kolar of Atlas CPA Index, who also pointed out that South Dakota charges no income taxes, estate taxes or inheritance taxes.
Sioux Falls is a “Goldilocks” size city: big enough to have great amenities, small enough to keep traffic down and the sense of community strong. Sioux Falls is also famous for its low crime rates, boosting the comfort factor.
If you get sick of the chilly winters, you can always hop south with the snowbirds for a month or two.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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