3 States To Retire in That May Be Cheaper by the End of the Year
Written by
Jake Safane
Edited by
Gabrielle Olya
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Finding a great place to live during retirement doesn’t always have to be expensive. In some cases, you can lower your living expenses while improving your quality of life by relocating to an area with lower housing costs and warmer weather. While most areas are experiencing rapidly rising prices thanks to increasing real estate and the cost of living, you may be able to find a place to live where costs end up declining by the end of the year.
It may surprise retirees to discover that housing markets in Florida, Texas and Virginia have options that are becoming more affordable while also providing access to top-tier healthcare and lower taxes. Even with these states offering a lot of positive attributes, there’s potential for retirees to be able to find bargains, especially when house hunting. Here is a closer look at what these three states have to offer.
Florida
The real estate market for Florida retirees may have boomed in recent years, but many areas in the Sunshine State are forecasted to experience a decline. For example, according to Realtor.com, Tampa, White Haven and West Palm Beach are at about a 70% chance of prices falling. Though certain cities within Florida are driving increases to the housing market, many retirees might find that areas such as these are getting more affordable.
Florida also offers other financial advantages, like no state income tax and no Social Security tax. That could help some retirees save money, especially if they plan to work part-time. Florida also does not have an estate or inheritance tax.
Texas
Texas offers similar tax advantages as Florida, like no state income tax, no Social Security tax and no estate or inheritance taxes. You can find a wide range of climates in Texas to suit your preferences, too. Along the Gulf Coast, you can find beach towns with mostly year-round warm weather, while in northern Texas, you might get a bit more of that winter feeling.
In 2025, even housing market corrections are bigger in Texas thanks to a combination of oversupply, declining demand and persistent affordability issues. In general, according to Redfin.com, the median home price in Texas saw a slight decrease of 0.91% year-over-year as of April 2025. This means retirees can take advantage of all the tax benefits while saving on real estate if they are looking to spend their golden years in a warmer climate.
Virginia
Virginia might not be the first place you think of when it comes to retirement, but it has several attractive features and could get cheaper by the end of 2025. There is a state income tax here ranging between 2% and 5.75%, but it does not tax Social Security benefits and it no longer has estate or inheritance taxes. Also, property taxes are lower on average here than in many states — 0.76% in Virginia vs. 0.82% in Florida and 1.63% in Texas.
Virginia also has lots of great places to live, especially if you enjoy a bit more of that four-seasons feeling, though with relatively mild winters. There are beachy communities, historic towns and midsize cities as well.
Statewide, home values have ticked up sharply — 6.3% over the past year. However, there’s some variability among the many different areas of Virginia, and if you’re patient, you can find a good deal.
Final Take To GO: Retire in Style… and on a Budget
The bottom line is that these three states have the potential to provide retirees a comfortable life, without stretching their fixed income too thin. Even if not all areas within these states experience price drops, if you do some digging, you will find that certain cities or towns offer great deals. At the very least, you can find places where housing costs are rising more slowly than the national average while still being enjoyable places to live, or better yet, retire.
Caitlyn Moorhead contributed to the reporting for this article.
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