6 Expensive Beach Towns You May Not Want To Consider for Retirement

If you’re like many people, you’re thinking about spending your golden years on the beach. However, maybe think twice about which beach town you set your sights on once you reach retirement age.

While all beach towns have sand and the ocean in common, living in some comes with a much higher price tag than others. Whether you’re retiring in a few years or decades, it’s never too early to start figuring out which towns are too expensive to be considered as your future locale.

According to Zillow, the average U.S. home value is $347,716. It’s probably not surprising that many beach towns have a much higher average home value, but there’s plenty left around this mark.

It’s possible your first — or even first several — choice beach town won’t be a realistic choice for your budget. Therefore, it’s important to be as flexible as possible, as this will increase your chances of making your dream of retiring at the beach a reality.

Of course, housing prices aren’t the only value to look at when searching for beach towns to move to. You’ll want to gauge the total cost of living in the area — i.e., food, utilities, transportation, healthcare and entertainment — to understand whether the town would best fit your retirement budget.

There’s no time like the present to start preparing for your retirement at the beach. To help you do so realistically, here’s a look at six expensive beach towns you might want to cross off your list, along with alternatives to consider.

• Average Home Value: $3.5 million

Whether you’re a Los Angeles resident hoping to retire local or simply want to enjoy the California dream from one of the state’s most famous beach cities, Malibu isn’t the most economical choice.

“Malibu is renowned for its affluent neighborhoods, celebrity residents and exclusive beachfront properties, resulting in sky-high housing prices and a high cost of living,” said Mehdi Khachani, co-founder and CEO at Miami Beach-based JMK Property Management.

If you have your mind set on a Southern California beach town, there are other, somewhat more affordable options.

Alternative: “Consider Oceanside, California, which offers a more affordable coastal lifestyle while still providing beautiful beaches and a range of amenities,” Khachani said.The average home value in Oceanside is $850,185.

• Average Home Value: $2.1 million

“Palm Beach is synonymous with luxury living, upscale shopping and multimillion-dollar estates, driving up property prices and the cost of living,” said Khachani.

There’s no need to get discouraged because Florida has other affordable options on the Atlantic Ocean.

Alternative: “Look into Vero Beach, Florida, which provides a more budget-friendly option with a laid-back atmosphere, beautiful beaches and a lower cost of living,” said Khachani.

The average home value in Vero Beach is $371,903.

• Average Home Value: $1 million

Wanting to retire in Maui is understandable, but it might not make sense financially.

“Maui’s stunning landscapes, world-class resorts and high demand from tourists and wealthy buyers contribute to its expensive real estate market and high cost of living,” Khachani said.

However, you don’t have to give up your dream of retiring to a Hawaiian paradise.

Alternative: “Consider Hilo, Hawaii, located on the Big Island, which offers a more affordable option with a slower pace of life, lush surroundings, and access to beautiful beaches,” he said.

The average home value in Hilo is $490,904.

• Average Home Value: $1.5 million (Dukes County)

If a beach town in a year-round climate isn’t your ideal spot, you might have your sights set on Martha’s Vineyard.

“Martha’s Vineyard is a popular summer destination known for its upscale communities, historic charm and exclusive atmosphere, resulting in pricey real estate and a high cost of living,” said Khachani.

If Martha’s Vineyard isn’t in your budget, he said another nearby beach town might be a better fit.  

Alternative: “Look into Cape Cod, Massachusetts, which offers a more affordable beach lifestyle with picturesque coastal towns, scenic beaches and a variety of recreational activities,” said Khachani.The average home value in Cape Cod (Barnstable County) is $695,447.

• Average Home Value: $961,909

“Sanibel Island’s pristine beaches, abundant wildlife and tranquil setting make it a desirable destination for retirees, driving up property prices and the cost of living,” Khachani said.

If you’re willing to move to the northeast side of the state instead, he recommended another chic, yet more affordable, option.

Alternative: “Consider St. Augustine Beach, Florida, which offers a more affordable option with historic charm, beautiful beaches and a range of amenities suitable for retirees,” Khachani said.

The average home value in St. Augustine is $451,076.

• Average Home Value: $920,536

Located in South Florida, Marco Island offers warm beaches, waterfront dining, high-end shopping and a plethora of golf courses — just to name a few of its many benefits. The largest of the Ten Thousand Islands, this Paradise Coast enclave is located on the Gulf Coast entrance to Everglades National Park.

Unfortunately, living on this chic island isn’t exactly cheap, but there’s another great option up the coast.

Alternative: Just over two hours north, the Sarasota coastline is home to six islands, meaning you’ll have your choice of beaches. Rich in culture, there’s also a plethora of museums, art galleries and performing arts venues, guaranteeing you’ll never be bored.

The average home value in Sarasota is $459,013.