Discover the ultimate retirement havens in the U.S. complete with affordable housing markets, tax incentives, extreme leisure and thriving social scenes.
Are Americans Moving to a New State in Retirement?
Many Americans move to a new state to enjoy a certain lifestyle in retirement. Whether it's for a warmer climate, access to better healthcare or extending their pensions by reducing their housing costs, retirees are not scared to pack it up and find a new state to call home.
Here's a ranking of the top cities for the movement of retirees. Based on this data, Arizona, Texas and Tennessee are three of the top destinations for retirees in the U.S.
Looking at the most popular states for retirees, Florida, Arizona, South Carolina and Texas are the top choices.
Data shows that Arizona gains the most retirees but Florida saw a huge surge of more than 77,000 retirees in 2024. Also, 30% of Maine's population is retirement age and retirees are quick to leave places like Massachusetts and North Carolina for sunnier skies and different lifestyles.
What Makes a State Ideal for Retirement?
What makes a state ideal for retirement is subjective, sure, but there are factors that every retiree or soon-to-be-retiree needs to consider.
A state’s housing market should be at the top of anyone’s list because you need an affordable home that's a good investment and fits your current and future living needs. This is not the time to sink your fixed income or savings into a money pit.
There's also the quality and cost of health care, climate, lifestyle, cultural attractions and proximity to attractions. Even something that seems insignificant, like affordable homeowners insurance, needs to be part of the equation when deciding which is the best state to retire in.
Ultimately, you want to buy an affordable last home that meets your needs and where you’ll be comfortable. Maybe you need an extra bedroom for grandchildren or a healthcare provider or you want to be close to amenities like golf courses. No matter what, you need to find the right home for your new life of leisure.
The Housing Market Often Dictates the Best State to Retire
When considering where to retire, the U.S. housing market plays a crucial role in the decision-making process for most retirees. Evaluating the affordability of different states, especially in terms of housing costs, is essential to ensure a financially stable retirement. No one wants to be house-poor in retirement.
Selling your home should help you achieve a comfortable retirement. You want to take some of those profits and buy a new home that's more manageable and affordable. The remaining profits should be put into your retirement for things like healthcare and travel. But you can negate your profits by overspending in a hot market or buying a home that will depreciate for when it’s time to sell again.
Property taxes significantly impact the overall cost of living and can influence retirement decisions. Understanding local tax structures is pivotal before making a move, as different states have varying property tax rates that can affect your financial situation.
Following real estate trends and the ebbs and flows of the U.S. housing market can set you up for the retirement you worked hard to achieve. Buying a retirement home in Florida, for instance, or another popular spot for retirees lets you spend your last years doing what you enjoy and not worrying about your pension or savings running out.
5 Best States to Retire in the U.S.
Let’s look at some of the best states to retire in. Understanding your retirement income and how it varies by state is crucial for financial planning. Each offers some combination of a strong housing market, a desirable climate and a fun lifestyle.
Best Places to Retire: Retirement Living in Florida
Florida is one of the best states to retire in. It offers a warm and tropical climate, making it an ideal destination for retirees who enjoy outdoor activities and sunny weather. With its beautiful beaches and abundant natural beauty, Florida provides a relaxing and picturesque environment for retirement living.
In addition to its natural attractions, Florida is home to a vibrant cultural scene. Museums, art galleries and theaters give plenty of opportunities to retirees for entertainment and enrichment. Sports fans will also have their choice of professional sports teams to cheer for as Florida has multiple teams in the NBA, MLB, NHL and NFL.
Let's not forget the impact of not having a state sales tax on the cost of living in Florida. This greatly benefits retirees by reducing their overall expenses and freeing up more cash flow for them to enjoy life.
Furthermore, Florida offers a range of housing options for retirees, including new construction projects that may offer the customization they desire. The median housing price in Florida is $398,077, which is the middle of the pack among states. There are 106,030 new permits on record in Florida, a sign of a healthy housing market. It's a stable market with affordable options for retirees moving to Florida.
The appeal of retiring in Florida is evident. From its pleasant climate and natural beauty to its cultural attractions and retirement-friendly housing options, Florida should remain one of the best states to retire in the U.S.
Best Places to Retire: Retirement Living in Texas
Texas is a top choice for retirees looking for a combination of affordability, quality of life, and diverse recreational opportunities. This state offers a low cost of living compared to many other retirement destinations, allowing retirees to stretch their retirement savings further.
In Texas, affordability meets a high quality of life. The state has excellent healthcare facilities and healthcare costs in Texas are relatively affordable, which is a significant financial consideration for retirees. Texas also offers a range of recreational activities, including outdoor adventures like camping and fishing and is home to many professional sports teams and cultural events like the Austin Film Festival and South by Southwest.
Another advantage of retiring in Texas is that residents don't have to pay a state income tax, a significant benefit to retirees on fixed incomes. The state also offers various tax exemptions for seniors, further reducing the financial burden of retirement.
The median housing price in Texas is $308,121 making it one of the more affordable states for retirees to buy a house. Texas has also seen a spike in new construction projects giving retirees more affordable housing options to suit their mobility needs and lifestyle preferences. Roughly 22% of all occupied housing in Texas was built in or after 2010. This demonstrates a consistently strong new construction homes market that can stabilize housing prices and give the supply a chance to keep pace with demand.
Retirees in Texas enjoy a winning combination of quality of life, recreational opportunities, appealing tax policies and affordable housing options.
Best Places to Retire: Retirement Living in Tennessee
Tennessee is a retirement destination that offers a unique blend of natural beauty and cultural attractions. The state is renowned for its stunning landscapes, including the Great Smoky Mountains, picturesque lakes and scenic rivers. Retirees in Tennessee can enjoy outdoor activities such as boating in these breathtaking natural settings.
In addition to its natural wonders, Tennessee is also home to vibrant cities and towns that offer a rich cultural experience. The state is known for its music scene, with Nashville being the hub of country music and Memphis famous for its blues heritage. Retirees can explore museums, attend live performances and immerse themselves in the arts and culture of Tennessee.
Furthermore, Tennessee offers a relatively low cost of living compared to other retirement destinations, making it an attractive option for retirees on a budget. The median housing price in Tennessee is $325,653. According to 2022 data, there were 17 new housing units authorized per 1,000 existing homes in Tennessee for a total of over 52,000 new homes. Tennessee is building the 11th most homes relative to the number of existing homes across all states. Housing options range from affordable homes in small towns to upscale condos in urban areas, providing retirees with a variety of choices.
Tennessee's relaxed tax policies, including the absence of state income taxes, are attractive to retirees. This can lead to substantial savings, particularly for those on retirement and pension income.
Retirement living in Tennessee offers a perfect balance of natural beauty and cultural highlights. Whether retirees seek outdoor adventures or a music festival, Tennessee has something for everyone.
Best Places to Retire: Retiring in Pennsylvania
Pennsylvania might not be at the top of most lists for the best states for retirees, but it offers a lot of benefits to an older population and it wouldn't be surprising to see it break the top 15 in the next few years.
Pennsylvania is rich in history and offers retirees a taste of the past and a slower pace. The state is known for its colonial heritage with cities like Philadelphia and Lancaster being home to historic landmarks and museums. Retirees in Pennsylvania can immerse themselves in the nation’s history and explore iconic sites such as Independence Hall and the Liberty Bell.
Retirees in Pennsylvania don't just have history to enjoy as the state offers a range of recreational opportunities. Experience stunning natural landscapes, including the Pocono Mountains and picturesque countryside. Retirees can hike, fish or even ski at one of Pennsylvania's winter getaways.
Pennsylvania's median housing price is relatively low at $272,477, a 5.3% increase over the previous year. The housing market is healthy among urban and rural areas, providing retirees with affordable housing options regardless of where they want to live.
Pennsylvania also boasts a strong healthcare system, with numerous world-class hospitals and medical facilities. However, healthcare costs in Pennsylvania are higher compared to some other states, an important consideration for retirees' financial planning.
Retiring in Pennsylvania offers a unique blend of history, natural beauty, recreational opportunities and a strong healthcare system. It’s a state that truly allows retirees to experience a taste of the past while enjoying a fulfilling present.
Best Places to Retire: Retiring in Georgia
Georgia is a hidden gem for retirees, a combination of Southern charm and a thriving cultural scene. The state is known for its warm hospitality and relaxed pace of life, making it an ideal destination for retirees seeking a peaceful and welcoming community.
Georgia oozes natural beauty. From the stunning coastline of Savannah to the majestic Blue Ridge Mountains, the state offers retirees a range of landscapes to explore and outdoor enthusiasts will have no shortage of activities to enjoy.
Georgia's most popular cities provide a rich cultural experience. Atlanta, the state’s capital, is a hub of arts, music and culinary delights. Retirees can visit museums, like the World of Coca-Cola, attend concerts and enjoy the diverse cuisine that has made Georgia a destination for many celebrity chefs like Marcus Samuelsson.
Another advantage of retiring in Georgia is the state’s affordable cost of living. The median housing price is $334,819 and options range from charming historic homes to modern condos. Retirees can enjoy a lenient tax environment with exemptions and deductions available for seniors. The state's property taxes are relatively low, which significantly reduces the overall cost of living and makes Georgia an attractive option for retirees.
It's easy to why Georgia is one of the best states to retire in. Its blend of affordability, culture, cuisine and entertainment makes it a state that has something for everyone.
New Construction Trends in Retirement-Friendly States
Retirement-friendly states such as Florida, Texas, Tennessee, Pennsylvania and Georgia have experienced a surge in new construction projects that are appealing to retirees. These projects provide retirees with a range of amenities and conveniences that enhance their retirement lifestyle.
One of the key trends in new construction is master-planned communities. Master-planned communities are communities that are carefully planned and include most of the amenities that residents need, including schools, hospitals, shopping centers, recreational activities and more. Many of these communities offer services such as lawn care, exterior maintenance and security, providing a worry-free retirement.
New construction projects are incorporating sustainable practices and universal design principles to make homes more accessible and age-friendly. Features such as step-free entrances, wider doorways and grab bars in bathrooms ensure that homes can accommodate retirees as they age.
The new construction trends in retirement-friendly states reflect the evolving needs and preferences of retirees.
FAQ
What states are the best for retirees?
States like Florida, Georgia, Tennessee, Pennsylvania, Texas, Arizona and South Carolina are some of the best states for retirees. Choosing the right state to retire in can significantly impact your quality of life, cost of living and access to healthcare. Some states offer better tax benefits, lower living costs and more activities for retirees.
When considering the best states for retirees, factors such as climate, healthcare facilities, and community engagement also play a vital role.
Why should retirees buy new construction in Florida?
Retirees should consider buying new construction homes in Florida to enjoy warm weather, a vibrant social scene, less tax stress and exceptional healthcare options and facilities. New construction homes are often customizable, so retirees can choose features and finishes that match their style and are more accessible and accommodating for their age. Most importantly, new construction homes in Florida are often more affordable than resale homes.
What are the benefits of buying new construction?
One of the primary advantages of buying new construction is affordability. If you buy early enough, they are often less expensive than resale and sometimes offer incentives. Since everything is brand new, owners typically have to perform fewer repairs and enjoy lower maintenance costs in the initial years. Additionally, new homes often come with modern amenities and energy-efficient features that save money in the long run.
Another benefit is the ability to customize your home. Many builders offer options for finishes, fixtures and layouts, letting you create a space that suits your needs and lifestyle.
