15 Cities Where Retirement Is Getting Unaffordable and 15 Cities You Should Look at Instead

Choosing where you’re going to retire is a combination of finding the right environment and amenities and the perfect price tag. There’s no point in settling in a pricey city if it’s just going to eat up your nest egg too quickly. However, rather than getting disheartened by what you can’t afford, consider cities that offer similar qualities but are much more affordable.

A study from GOBankingRates drew from key data from Zillow, Sperling’s BestPlaces and the Bureau of Labor Statistics to give you some much more affordable options when you’re considering where to retire. Considering the median listing price for a home and the average expenditures for someone 65 and older, the study has identified which of the country’s cheapest places to live also offer a similar lifestyle to the pricier options that might spring to mind first.

So, before you immediately assume that you’ll need to work into your 70s to afford the retirement you want, you might find that these cheap places to retire have everything you want at a much lower price, giving you more financial flexibility and an easier time making ends meet on a fixed income. As you’ll see, it doesn’t necessarily take a lot to retire in a great city.

Alaska is known for its stunning, if rugged, natural beauty. While you might be tempted to settle in the gorgeous Juneau, it could be too expensive for the average retiree. The average home value is $521,490, and the total monthly cost of living is $5,134, which, if you’re living primarily on Social Security, is going to really stretch your budget.

Instead of Juneau, look to the small community of Kenai, where the average home value is $309,170, and and the monthly cost of living is $3,926.

While it’s easy to see why the bucolic town of Mountain Brook, Alabama attracts retirees, you have to have a very robust retirement fund to make it possible. The average home value is $839,333, and the monthly total cost of living is almost $7,000.

Selma, on the other hand, offers a significantly more affordable cost of living than Mountain Brook. Here the average home value is just under $60,000 and the total monthly cost of living is just $2,162.

Although the South is often notoriously cheaper than many other parts of the country, Goshen, Arkansas should not be a retiree’s first choice, as the average home value is $679,017 and the total monthly living costs are $5,797.

Instead of Goshen, consider Grubbs, a very small town, population 378, with an average home value of under $40,000. Grubbs’ monthly cost of living comes in at a remarkably low $1,835, as well.

Who wouldn’t be curious about a town called Paradise Valley? And while it’s true that it attracts a lot of people, unfortunately, it comes at a steep price. The average home value is over $3.5 million, which puts average monthly cost of living at a steep $22,879, factoring in high mortgage payments.

Ajo, on the other hand, actually has a slightly higher livability score than Paradise Valley at a vastly cheaper sticker price. The average home value here is just under $122,000 and the total monthly costs are under $2,500.

California is one of the more expensive states to live in, overall, but Atherton really takes a significant slice of the cake, making it well out of reach for the average retiree. Here, where the average home value is more than $7.5 million, the total monthly costs run over $47,000, when you factor in those steep mortgage payments.

Instead of Atherton’s out-of-reach affordability, choose Herlong, California, where the average home value is not only leagues less expensive than Atherton, but of much of the rest of the state too, at $118,213. Total monthly costs here are only $2,643, as well.

It’s probably not surprising that Aspen is out of the reach of the average retiree, given it’s a top choice for the wealthy to vacation and ski. The average home value of this famous town is over $9.2 million, bringing average monthly cost of living to well over $56,000, due to a monthly mortgage payment that is more than some people’s annual income.

Not only will you find Las Animas more affordable than Aspen, it’s likely to be free of tourists, too. Here the average home value is just $94,768. The total monthly cost of living is only $2,302, as well.

New England is charming and lovely, but depending on where you retire, also expensive. Forget about Greenwich, where the average home value is nearly $2.4 million. The monthly cost of living here is also steep, at $16,591.

Hartford gives retirees a much needed break, with an average home value of just $121,057. Monthly costs are much lower, too, at $3,550.

Rehoboth Beach might sounds like a nice place to finish out your golden years, but you’ll pay for it — the average home value here is $817,867. Total monthly costs come in around $6,830.

You can still retire in Delaware, just choose a more practical town like Elsmere, where the average home value is $225,685. Here your total monthly costs will run around $3,326, instead.

Florida is at the top of many retirees’ choices due to its incredible climate and high number of older adults. However, Palm Beach is most likely out of reach for all but the wealthy. The average home value here is a stunning $11.7 million. This translates to total monthly costs — including mortgage — of nearly $72,000.

Not only is Gretna much smaller than Palm Beach, it’s vastly cheaper. Here, the average home value lacks many of the zeroes of Palm Beach, at just $92,580. And the total monthly costs are only $2,557.

Milton, Georgia is another Southern city that defies the lower than average cost of living in the U.S. Here, the average home value is closing in on $1 million. Total monthly costs run closer to $8,000, as well.

For affordability, Georgia style, look to the colloquially named Lumpkin, where the average home value is a miniscule $52,023. Your total monthly costs will run around $2,108.

Retiring in Hawaii is probably most people’s dream, with a climate that rarely sees a bad day, save for stormy seasons, and promises a relaxed pace of life. Unfortunately, tourism makes it difficult to find an affordable city here. Forget about Kilauea, where the average home value is nearly $1.7 million, and the total monthly costs are over $12,000.

You can probably make retirement work in the Hawaii city of Mountain View, where the average home value is a more reasonable $330,705. While the total monthly costs here — $4,417 — are higher than many other cities on this list, it’s a far cry from Kilauea.

Many people have been making their way from the West Coast toward Idaho in retirement, but Ketchum is going to be a tough place to retire. The average home value here is almost $2.3 million. The total monthly costs run over $15,000.

You don’t have to give up on Idaho dreams — just look to Aberdeen, instead. Here the average home value is just under $250,000. And your total monthly costs, while not the cheapest on this list at $3,130, are a far cry from what you can expect to pay in Ketchum.

It’s not just big cities like Chicago where you can expect to pay more in the Midwestern state of Illinois. Kenilworth is fetching a high price for homes, with an average home value of almost $1.8 million. With monthly costs of $12,530, you’ll want to look elsewhere to retire.

Venice, Illinois, on the other hand, is so affordable you might pinch yourself. The average home value is lower than the cost of some new cars, at $33,806. You’d save a lot of money, with average monthly costs coming in just under $2,000, as well.

Zionsville, Indiana is another example of how the Midwest is not always the cheapest place to retire. Here, the average home value is $620,934. Your monthly cost of living is upwards of $5,500.

Bicknell can still provide some Midwestern charm with a much cheaper price tag. The average home value here is only $85,970. Your total monthly costs are $2,096.

You might not want to be in Kansas anymore, Toto, if you have to pay the high living costs of Mission Hills. Here, the average home cost is $1.4 million, and your monthly costs are over $10,000.

Coffeyville has a very low average home value, at just under $57,000. Here your monthly costs only run you about $2,023 as well, a much better deal than Mission Hills.

Jordan Rosenfeld contributed to the reporting for this article.

Methodology: For this study, GOBankingRates analyzed cities across the country to find replacement retirement cities for cities that are unaffordable. First, GOBankingRates gathered a few factors for each city, including: total population as sourced from the U.S. Census American Community Survey, the cost of living indexes as sourced from Sperling’s BestPlaces, the average expenditure costs for residents aged 65 and over as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the livability index as sourced from AreaVibes, the average home value for single family homes as sourced from Zillow Home Value Index, and, by assuming a 10% down payment and using the National Average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. The total monthly cost of living can be calculated by using the average expenditure and the average mortgage costs. The most expensive city and the cheapest city in the same state were recorded to showcase a cheaper location for residents aged 65 and over to live. All data was collected on and is up to date as of July 8, 2024.

Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.