Moving to a place with a lower cost of living can improve your retirement finances. If you sell a home in an expensive city and buy or rent in another city with more reasonable housing costs, you may be able to boost your retirement savings, retire sooner or enjoy a higher quality of life.
A recent U.S. News analysis compared the 150 largest metropolitan areas in the U.S. as potential retirement spots. The study included data about housing affordability, happiness, desirability, retiree taxes, the job market and access to quality health care. These are the cities with the most affordable housing that also scored highly on the U.S. News 2024 Best Places to Retire ranking. Consider these affordable cities for retirement.
- 10. South Bend, Indiana.
- 9. Toledo, Ohio.
- 8. Mobile, Alabama.
- 7. Winston-Salem, North Carolina.
- 6. Fort Wayne, Indiana.
- 5. Huntington, West Virginia & Ashland, Kentucky-Ohio.
- 4. Brownsville, Texas.
- 3. Springfield, Missouri.
- 2. Hickory, North Carolina.
- 1. Youngstown, Ohio.
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South Bend is the home of the University of Notre Dame, located just outside the city, where retirees may be able to attend some of the sporting events, concerts and lectures. This college town has an affordable cost of living that benefits students and retirees. The median home price is $207,442, which is well below the national average of $431,000, according to the Federal Reserve Bank of St. Louis. The median mortgage payment is $730. If you want to rent an apartment in South Bend, the median monthly rent is about $874. The four-season climate provides opportunities for winter sports, including cross-country skiing and ice skating, as well as fishing and boating in the summer.
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Toledo, also known as the “Glass City” for its ties to the glass-making industry, is located on the western edge of Lake Erie near the border with Michigan. The city has a four-season climate, including hot and humid summers and cold winters. Toledo’s low home prices make it easy to enjoy a high quality of life on a limited retirement budget. The median home price is $157,983, with a median mortgage payment of $795. You can rent an apartment in Toledo for a median of $809 per month. However, if you are willing to pay more, the city also has many historic homes and buildings, especially in the Old West End neighborhood.
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You don’t have to live in New Orleans to enjoy Fat Tuesday festivities. Mobile is known for having one of the oldest Mardi Gras celebrations in the U.S. and is considered a cultural center of the Gulf Coast. The Port City is full of history and residents are less than an hour away from multiple beaches along the coast. Mobile is a growing city, but it’s still an affordable place to call home. The median home price is $214,910, with a median mortgage of $837, and renters spend a median price of $914 for an apartment in the Mobile metro area.
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Many retirees are priced out of wine country in Napa Valley, but Winston-Salem residents can enjoy locally produced wines at a much more reasonable cost. This vibrant, walkable community is situated among three North Carolina wine regions. The low housing costs make it easier to comfortably afford a home in the Winston-Salem area. The median home price is $327,063, with a median mortgage of $841, and you can rent an apartment in Winston-Salem for a median of just $834 monthly.
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With its low cost of living and quiet neighborhoods, retirees on a tight budget may find a lot to like about Fort Wayne. The median-priced home in Fort Wayne costs only $216,538, with a median mortgage of $706. Renters in Fort Wayne pay a median of $839 monthly. Retirees will enjoy big-city amenities as well as quirky special events. You can research your family history at the Allen County Public Library’s extensive Genealogy Center or visit the Fort Wayne Museum of Art free on Thursday evenings or with a senior discount any other day. Fort Wayne has several farmers markets that supply local produce and live entertainment, and the farmland northeast of the city proper is home to many Amish communities.
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The metro area that includes Huntington and Ashland, Kentucky, is located along the Ohio River and has a large riverport. Huntington is the home of Marshall University, the Huntington Museum of Art and an extensive park system. The low housing costs and affordable cost of living make it easier for retirees on a budget to live well. You can own a home in the Huntington metro area for a median price of $165,496, with a median mortgage payment of $758. Renting an apartment in Huntington costs a median of only $764 monthly.
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Brownsville is located at the southernmost tip of Texas and is known for its deep-water seaport and year-round semitropical climate. The comfortable climate makes it ideal for recreational fun and activities, and residents also enjoy cultural influences from nearby Mexico. Brownsville is much more affordable than Austin or Houston, and the median home price is around $276,671, with a median mortgage of $793. If you prefer to rent an apartment, the median monthly rent is $785. Waterfront communities will be more expensive than the average metro price, but Brownsville residents still pay less than the average American for everyday expenses. Brownsville ranks No. 1 for price parity, the costs of everyday goods and services, on the annual Best Places to Retire list.
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The Queen City of the Ozarks is the hub of southwest Missouri and home to higher education institutions and the headquarters of major companies. Springfield has a lively downtown where residents enjoy music, dining, museums, shopping and more, but the metro area has plenty of parks, trails and caves for outdoor enthusiasts. The cost of living in Springfield, including everyday expenses like housing, groceries, utilities and transportation, is much lower compared to other areas of the country. The median home price is $290,875, with a median mortgage of $764. Renters pay a median of $809 per month on rent for an apartment.
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Hickory is best known for furniture manufacturing, and you can find one-of-a-kind items made by local skilled artisans at the Hickory Furniture Mart. Lake Hickory is located along the northern edge of the city and has over 100 miles of shoreline and opportunities for boating and fishing. The city also has year-round moderate temperatures and is located at the foot of the Blue Ridge Mountains. The low cost of housing helps retirees live well on a modest income. The median home price in Hickory is $219,950, and the median mortgage is $756. Renters pay a median of just $743 per month.
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Youngstown is located within about an hour’s drive of both Pittsburgh and Cleveland, and it also marks the midpoint between New York City and Chicago. Although Youngstown was once a center for the steel industry, Youngstown State University is now the area’s largest employer. Retirees might enjoy a stroll through Mill Creek Park, which has two golf courses that provide discount rates to seniors and a “Cinderella” iron link bridge. The area’s housing costs are very affordable for retirees. The median-priced home in Youngstown is $137,546 – homeowners pay a median mortgage of $653 mortgage – and you can rent an apartment for a median of $706 monthly.
