5 US Cities for Retirees That Are as Cheap as Mexico, Portugal and Costa Rica

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You may know friends or family who’ve moved to places like Mexico, Portugal or Costa Rica to live more frugally to live out the retirement of their dreams. However, if you’re looking to stay in the United States for your retirement, there are plenty of affordable options available with similar tropical climates.

Recently, the U.S. News & World Report compared the top 150 U.S. cities to discover which are the best for retirement. Taking those that scored highly, GOBankingRates narrowed down that list further by looking for cities that not only had affordable housing, but that also had beautiful and warm environments. For those interested in cheaper living costs and sunshine that rivals popular areas abroad, here are the top five American cities for retirees.

1. Virginia Beach, Virginia 

• Median home value: $376,063
• Median monthly rent: $1,406

Though it may not technically be a tropical location, it does serve some beautiful weather and waterfront vistas. Creating a community is important in retirement, and Virginia Beach has an overall population of 456,053, 17% of which are retirees and seniors over the age of 65. 

2. Jacksonville, Florida

• Median home value: $302,616
• Median monthly rent: $1,241

Jacksonville may not be the first city you think of in Florida when it comes to living out your golden years. Still, it’s a popular destination for retirees due to its affordability and warm weather, not to mention it’s easy access to great healthcare and outdoor activities. 

3. Huntsville, Alabama 

• Median home value: $302,276
• Median monthly rent: $883

Though often an underestimated gem when it comes to retirement destinations, Huntsville can provide a high quality of life without the hefty price tag of other big cities. If you are looking for your perfect place to retire, but don’t want to commit to a big real estate investment just yet, you can find a ton of options where your monthly rent will be under $1,000.

4. Charlotte, North Carolina

• Median home value: $397,862
• Median monthly rent: $1,339

About 11% of Charlotte’s 920,072 population is over age 65, so you’ll already have a built-in retirement community that also moved there for a lower cost of living and warmer weather. It offers a blend of urban amenities and small-town living with options for active adults and those seeking a more relaxed pace. The city’s tax-friendly policies, particularly the exemption of Social Security benefits from state income tax, also make it attractive for retirees. 

5. Pensacola, Florida

• Median home value: $296,312
• Median monthly rent: $1,013

To round out the list of cheap places to live that are similar to Mexico or Costa Rica when it comes to affordable housing and a warmer climate, Pensacola is the Floridian recipe for retiring in style, with an added pinch of fiscal responsibility. It is often highly ranked on retirement destination and cheap places to live lists thanks to its beautiful beaches, relaxing atmosphere and affordable cost of living.

Chris Adam contributed to the reporting for this article.

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