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Do you want a warm-weather lifestyle but wonder if it’s financially possible in retirement with rising housing costs? Good news: it is. Retiring to a sunny climate destination doesn’t have to deplete your savings.
There are still plenty of places where people over 65 can keep their monthly costs under $1,750 — and still enjoy mild winters, beautiful scenery, and outdoor amenities. For many retirees, renting a home can eliminate unexpected repair and maintenance costs.
GOBankingRates taps real estate experts to find affordable retirement destinations. From coastal communities to the high desert, here are five cities where you can retire in nice weather without spending a lot.
1. Tucson, Arizona
The average rent in Tucson is $1,550, with the average rent for a studio apartment being $797, one-bedroom being $924, and two-bedroom being $1,266. according to district.
Joseph Keshi, CEO Cashman Property Managementrecommends Tucson for its affordable cost of living and says, “Housing, property taxes and utilities alone cost about $1,750 per month.”
“Retirees benefit from health care options, baby-boomer-friendly insurance rates, connection to nature through walkable neighborhoods, and affordable recreational options. (Being outdoors year-round) is another advantage, and there are never flooding rains.”
Jeremy Yamamoto, Founder Easy House SaleEchoed this sentiment.
“Tucson is already a premier desert destination market, and the increased availability of 55+ active adult communities results in a strong, competitive market with low HOA fees and housing prices,” Yamamoto said.
In recent years, he said, retirees have been attracted to Tucson’s affordable health care costs, which are below the national average, and its mild climate keeps expensive winter heating bills in check.
“Its small-town feel within a major metro city means there is close and affordable access to all necessities,” Yamamoto said.
2. El Paso, Texas
With over 300 days of sunshine a year and a low crime rate, El Paso offers peace of mind and cost savings.
“The city is a top financial choice, given that housing prices are still about 50% cheaper than the national average and there are no state taxes on retirement income or Social Security,” Yamomoto said. “This represents a significant reduction in expenses, leaving a budget of $1,750 to spread quality health care, (food and entertainment).”
The monthly average rent in El Paso is $1,500, with studio apartments averaging $781, one-bedrooms $838, two-bedrooms $1,100, and three-bedrooms $1,610. per district.
3. Gulfport, Mississippi
Retirees who wish to live on the Gulf of Mexico can find a coastal oasis in Gulfport, Mississippi, without paying the high prices found in major Gulf cities.
“Mississippi is extremely tax-friendly for retirees, as it taxes neither Social Security benefits nor income from qualified retirement plans like IRAs and 401(k). And with a cost of living about 14% lower than the national average, seniors can afford to live close to the water while still staying within their budget each month,” Yamamoto explained.
The average monthly rent in Gulfport is $1,500. Retirees can find a studio apartment for an average of $797, a one-bedroom for $895, a two-bedroom for $1,300, and a three-bedroom for $1,600.
4. Daytona Beach, Florida
Retirees can enjoy a classic Florida lifestyle in Daytona Beach, where average home prices are typically 15% lower than the state average, Yamamoto said. The average monthly rent in Daytona Beach is $1,600, with studio apartments averaging $1,156, one-bedrooms $1,250, and two-bedrooms $1,550. according to district.
“Daytona is one of the last beach bastions of affordable living,” Yamomoto said. This is part of the financial appeal, helped by Florida having no state income tax, so the retiree now has more money in their pocket for food and shopping or local entertainment or trips.
The affordability and appeal of living close to the coast makes Daytona Beach an attractive option for people with limited pensions, Yamomoto said.
5. McAllen, Texas
With a cost of living 20% lower than the national average, low income taxes, no state income tax, and housing costs about 32% lower than the U.S. average, McClellan is “one of the most affordable cities in the country,” Yamamoto said.
“The city’s year-round tropical feel is enhanced by its location on the Rio Grande, making it perfect for those who want an active but affordable lifestyle,” he said.
In McAllen, the average monthly rent is $1,350, with one bedroom averaging $750, two bedroom averaging $1,100, and three bedroom averaging $1,600. according to district.