4 Cities Where Your Retirement Dreams Will Be Crushed Due to Skyrocketing Prices

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Retiring comfortably in the U.S. has taken on a whole new meaning, and it can differ significantly depending on where you live. While some cities are built for retirees with a low cost of living, affordable housing, and friendly tax laws, other areas have become nearly cost-prohibitive for those hoping to retire without financial woes.

In some cases, even metropolitan areas that were once retirement hotspots have now become too expensive for seniors to afford.

Here are four cities where your retirement dreams will be crushed due to skyrocketing prices. 

San Diego

Sunny San Diego is an ideal location for retirees. Its year-round mild climate and beachfront location have drawn retirees for decades. The cost of living in San Diego has recently become nearly unaffordable. 

San Diego’s living costs have increased by 20% since 2019. Estimates indicate that the 2025 cost of living is $104,654, significantly exceeding the annual income for many retirees. Housing prices have fallen by 1.2% since last year, according to Zillow. The decrease, however, still leaves the median home value at $1,021,321. 

Miami

Once popular with retirees for its abundance of activities, turquoise waters, and white sand beaches, Miami has become too pricey for seniors to afford. According to the U.S. Bureau of Labor Statistics, prices rose an additional 2.2% in the past year. Home prices have also increased by .2% since 2024, bringing the median home value to $589,241, as reported by Zillow. 

To live in Miami, a single person would need to make $5,233 per month. The overall cost of living is 16.9% higher than the national average, as indicated by Best Places. Without considerable income, most retirees would be priced out of the area. 

Austin, Texas

Located just a couple of hours from Houston, Austin had long remained one of the Lone Star State’s hidden gems. Lush hillsides, a low cost of living, and one of the best music scenes in the country drew people, young and old, to the capital city. However, as the city grew in popularity, so did the price of houses. 

The cost of living in Austin is 29% higher than the national average and 37% higher than the state average, according to Best Places. While home prices have decreased slightly over the past year, the median listing home price remains at $615,000, as reported by Realtor.com. This price point is significantly above the average in the U.S. Retirees on a fixed income may struggle to keep pace with the high cost of living and expensive housing market. 

Palm Springs, California

At one point, Palm Springs was considered a bustling retirement community with ample outdoor adventures for retirees to partake in, inexpensive housing compared to neighboring Los Angeles, and nearly 365 days of sunshine. Substantial housing increases and a rising cost of living have made the idyllic setting less appealing to seniors on a budget. 

According to Redfin, home prices in May 2025 were up 14.5% compared to the previous year. The cost of living in the desert city is 31% higher than the national average, as reported by Best Places. A single person would need at least $4,600 per month to live comfortably in Palm Springs, while a family of four would need a monthly income of around $9,900 to reside in the city. 

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