Enjoying your golden years shouldn’t require a hoard of gold to sustain an active adult lifestyle. Budget is a big part of retirement planning, especially for those with a fixed income and limited savings. Does this mean your retirement destination dreams need to take a backseat to your price point? Absolutely not! There are plenty of budget-friendly retirement options from coast to coast.
Of course, there are also a few heavy hitters regarding that bottom line that fiscally savvy retirees may wish to avoid. While many of the most expensive places to retire in the U.S. are expected, a few of our top 10 priciest places might surprise you.
Active adult retirement communities are all about living life to the fullest. Resort-style amenities, vibrant outdoor spaces, recreation, dining, and entertainment are where we’d all like to spend our money. Taxes, housing prices, and the overall high cost of living in the most expensive places to retire might be cause to check these areas off your list in favor of 55+ communities designed for optimal budget and lifestyle balance. Or if you’re ready and willing to find your dream home in the lap of luxury, you can also start your search in these areas.
1. Hawaii
The Hawaiian Islands are the most expensive retirement destination in the U.S. A high cost of living, a median home price of about $800,000, and health care costs above the national average create an expensive lifestyle for most. It’s worth noting that due to the additional cost of imports, groceries, dining, and shopping tend to have a higher price tag in this beachy paradise as well. If you’re seeking tropical vibes, maybe consider the Gulf Coast before Hawaii’s island sands.
2. San Francisco
California’s high cost of living comes as a surprise to no one. Looking at key areas where active adult communities tend to have a high price tag, San Francisco is among the most expensive retirement cities. California’s taxes are not retiree-friendly and the average home price eats up a good chunk of savings for most 55+ residents. If your heart is set on California dreamin’ on a budget, try San Diego instead.
3. Oregon
Oregon may rank as a surprising contender for the most expensive places to retire in the U.S. The cost of housing is 22% higher than the national average, with necessities like groceries averaging 5% higher. This may make living in the Pacific Northwest difficult for retirees on a fixed income. For a more budget-friendly option with mountain views, consider retiring in states like North Carolina or Tennessee, which offer a lower cost of living and access to beautiful mountain landscapes.
4. Orange County, CA
Coming in right after San Francisco is Southern California’s most expensive zip code. Orange County home prices are high because demand far exceeds supply. A desirable location, strong job market, and limited land for new development create intense competition, driving up prices. The OC ranks high on our list of most expensive places to retire, but other destinations like North Carolina, Utah, and Arizona may offer similar benefits at a lower price point.
5. Massachusetts
Massachusetts is known for its high cost of living which ranks 27.5% above the national average. Also, a typical home costs about $557,000, which is 64.8% more than the national average. While these costs may be a deterrent for some retirees, the state offers excellent health care and a rich cultural scene. If you’re set on an East Coast retirement with historic charm, we also recommend checking out Connecticut for a more palatable cost of living.
6. Colorado
If you’re looking for a nature-centered retirement destination, the Rocky Mountains certainly hold a lot of appeal. Unfortunately, Colorado also comes with a high price tag. Cities like Denver, Vail, and Breckenridge have seen soaring housing costs over the last few years. With the cost of living continuing to rise, you may want to consider states like Montana or Idaho, which offer stunning natural landscapes and a more budget-friendly retirement experience.
7. Vermont
Images of small-town B&Bs, the scent of maple syrup, and fall foliage might be the first thing many retirees think of when considering Vermont. However, recent statistics found that 27% of Vermont seniors spend 30% or more of their income on homeowner costs. Instead of spending all your savings in one place, check out less saturated active adult communities in Charleston or Myrtle Beach.
8. New York City
The Big Apple is well-known for its high property taxes and exorbitant home prices. NYC is a busy destination that doesn’t lend well to a stress-free retirement lifestyle. Rather than living in the heart of the city, consider areas like Albany or Saratoga Springs. While 55+ communities in these areas can still be quite expensive, the amenities even out the deal and foster a more peaceful speed of life.
9. Illinois
A surprising feature on our list of the most expensive places to retire, Illinois is fairly expensive when compared to the national average. This is driven by high demand and limited housing supply (particularly in prime areas like Chicago and the Chicago suburbs), high state taxes, and a broad sales tax base. For a more affordable Midwestern alternative, consider states like Indiana or Wisconsin, which offer a lower cost of living and a variety of retirement-friendly communities.
10. Orcas Island, WA
Finally, we come to the beautiful Orcas Island in Washington. Although this area is picturesque, the cost of living is about 35% higher than the national average, with a median home price north of $900,000. Many budget-savvy retirees have flocked to less touristy areas of Washington State that still feature scenic views and plentiful hiking trails. Consider Sequim, Olympia, and Anacortes before venturing out to Orcas Island in search of 55+ communities.
55places Can Help You Find Your Dream Home!
Balancing the books on retirement planning requires dedicated research into the cost of living for your top retirement communities. Luckily for 55+ homebuyers, the team at 55palces.com is here to do the heavy lifting for you! Our local real estate experts can help you sell your current home, identify your must-haves in an active adult community, and find low-maintenance properties within your price range. Contact us today to start your journey!
