20 Towns Middle-Class People Must Avoid Moving To If They Want To Retire Early

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Some say the middle class is shrinking. Some say it isn’t. Regardless, we’re still talking about millions and millions of people. Additionally, most Americans identify as middle class.

Across all income levels, tons and tons of people want to retire early. The middle class is no exception. But early retirement can often fail to launch or, what’s worse, launch and then fail. It’s necessary to budget aggressively and minimize spending if you want to meet your goal of an early retirement. If you’re middle class and you live somewhere quite expensive, you’re probably robbing yourself of the opportunity to retire early. 

In a new study, GOBankingRates analyzed cities across the U.S. to find those that the middle class should avoid if they want to retire early. Due to house prices, all of them are in New York or Hawaii. These are the top 20 to steer clear of if you’re planning to bid adieu to the workforce before you reach your full retirement age. 

See other cities to avoid in retirement as well.

Garden City, New York 

• Household median income: $204,883 
• Single family home average value: $1,254,305 
• Total cost of living annually: $122,237 
• Livability: 84

Honolulu

• Household median income: $82,772 
• Single family home average value: $1,285,351 
• Total cost of living annually: $123,689 
• Livability: 78

Koloa, Hawaii 

• Household median income: $72,143 
• Single family home average value: $1,298,548 
• Total cost of living annually: $124,599 
• Livability: 58

East Williston, New York 

• Household median income: $225,833 
• Single family home average value: $1,300,905 
• Total cost of living annually: $125,399 
• Livability: 82

Laie, Hawaii 

• Household median income: $108,965 
• Single family home average value: $1,352,742 
• Total cost of living annually: $129,219 
• Livability: 79

Kula, Hawaii 

• Household median income: $93,452 
• Single family home average value: $1,374,417 
• Total cost of living annually: $129,765 
• Livability: 68

Great Neck, New York 

• Household median income: $128,457 
• Single family home average value: $1,430,144 
• Total cost of living annually: $135,246 
• Livability: 74

Roslyn, New York 

• Household median income: $97,073 
• Single family home average value: $1,449,384 
• Total cost of living annually: $136,501 
• Livability: 80

Kailua, Hawaii 

• Household median income: $138,363 
• Single family home average value: $1,529,779 
• Total cost of living annually: $141,209 
• Livability: 83

Larchmont, New York

• Household median income: $220,714 
• Single family home average value: $1,651,559 
• Total cost of living annually: $150,763 
• Livability: 86

Kilauea, Hawaii

• Household median income: $85,227 
• Single family home average value: $1,650,879 
• Total cost of living annually: $150,976 
• Livability: 63

Haleiwa, Hawaii 

• Household median income: $92,173 
• Single family home average value: $1,656,864 
• Total cost of living annually: $151,722 
• Livability: 68

East Hills, New York 

• Household median income: $250,000  
• Single family home average value: $1,660,465 
• Total cost of living annually: $152,409 
• Livability: 77

Princeville, Hawaii 

• Household median income: $82,250 
• Single family home average value: $1,710,172  
• Total cost of living annually: $155,392 
• Livability: 68

Manhasset, New York 

• Household median income: $156,959 
• Single family home average value: $2,046,095 
• Total cost of living annually: $180,722 
• Livability: 82

Laurel Hollow, New York 

• Household median income: $250,000 
• Single family home average value: $2,053,389 
• Total cost of living annually: $181,545 
• Livability: 63

Muttontown, New York 

• Household median income: $226,477 
• Single family home average value: $2,094,640 
• Total cost of living annually: $184,534 
• Livability: 56

Old Westbury, New York 

• Household median income: $250,000 
• Single family home average value: $2,594,213 
• Total cost of living annually: $220,757 
• Livability: 64

Sands Point, New York 

• Household median income: $250,000 
• Single family home average value: $2,964,411 
• Total cost of living annually: $248,992 
• Livability: 73

Hanalei, Hawaii

• Household median income: $97,292 
• Single family home average value: $4,300,197 
• Total cost of living annually: $346,437 
• Livability: 69

Methodology. For this study, GOBankingRates analyzed cities across the United States to find cities the middle class should avoid if they want to retire early. GOBankingRates found the cost-of-living indexes for the most expensive cities in the country, as sourced from Sperling’s BestPlaces. For each location, a number of factors were found, including total population, population ages 65 and over, total households, and household median income — all sourced from the U.S. Census American Community Survey. Using this data, the percentage of the population ages 65 and over was calculated. The cost-of-living indexes were sourced from Sperling’s BestPlaces and include the grocery, healthcare, housing, utilities, transportation and miscellaneous cost-of-living indexes. Using those indexes and the national average expenditure costs for retired residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each location was calculated. The livability index was sourced from AreaVibes for each location. The average single family home value was sourced from Zillow Home Value Index for September 2024. Using the average single family home value, assuming a 10% down payment, and using the most recent national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage was calculated. Using the average mortgage and average expenditure costs, the average total monthly and annual cost of living were calculated. The cities were sorted to show the most expensive cities, representing places the middle class must avoid if they want to retire early. All data was collected on and is up to date as of Oct. 16, 2024.

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