For decades, retirees sought out affordable, sunny destinations where they could stretch their savings and enjoy a comfortable lifestyle. Places like Florida, Arizona, and certain international hotspots were considered safe havens for seniors looking to retire without financial stress. But in recent years, those once-affordable locations have experienced skyrocketing living costs, property values, and taxes.
The harsh reality is that many retirement destinations that were considered budget-friendly just 10 or 15 years ago are now out of reach for the very retirees they once attracted. Rising housing prices, inflation, and an influx of remote workers have pushed these areas into the “priced out” category.
Below are 10 retirement spots that were once known for being affordable, but are no longer a bargain.
1. Sarasota, Florida
Sarasota was once one of Florida’s most affordable coastal cities. With beautiful beaches, warm weather, and plenty of retirement communities, it was a top choice for seniors. But with its growing popularity and influx of new residents, housing prices have surged by more than 60% in the past decade.
Today, retirees find themselves competing with younger professionals and remote workers, many of whom are driving up the local housing market. Add in rising insurance costs, especially flood and hurricane coverage, and Sarasota is no longer the budget-friendly paradise it used to be.
Tip for Retirees: Look inland for smaller Florida towns that still offer reasonable costs but similar access to beaches and healthcare.
2. Asheville, North Carolina
Asheville’s artistic vibe, mountain scenery, and mild climate made it a favorite for retirees seeking a slower pace of life. However, the city’s housing boom and soaring property taxes have made it difficult for retirees on fixed incomes to settle there.
The city’s growing popularity with younger buyers and tourists has driven the cost of living to levels that rival larger metropolitan areas. Even basic groceries and services have seen significant price increases.
Tip for Retirees: Consider smaller mountain towns in western North Carolina that offer the same natural beauty without Asheville’s inflated costs.
3. Austin, Texas
Austin was once praised as an affordable and vibrant city for retirees who wanted culture, good food, and mild winters. But in the past decade, housing prices have skyrocketed by over 80%, largely due to tech industry growth and population surges.
Even though Texas doesn’t have a state income tax, rising property taxes and insurance premiums have made Austin a financial challenge for many retirees. What was once a retiree-friendly city now feels out of reach for those on fixed budgets.
Tip for Retirees: Look to smaller Texas towns like Georgetown or New Braunfels, which still have some affordability compared to Austin.
4. Santa Fe, New Mexico
Santa Fe’s desert beauty, rich history, and cultural scene made it a top retirement spot for decades. But in recent years, home prices have soared well above the national average. Retirees who once thought they could buy a quaint adobe home on a budget are now finding that the median home price surpasses $600,000.
The cost of utilities and groceries has also risen due to increased demand from newcomers seeking the area’s artsy and laid-back vibe.
Tip for Retirees: Consider nearby towns like Taos or Las Cruces, which still offer charm without Santa Fe’s premium price tag.
5. Portland, Oregon
Portland’s mild climate, outdoor lifestyle, and cultural appeal once made it a hidden gem for retirees. However, the city’s popularity has led to a dramatic rise in housing costs and property taxes.
In addition, Portland’s growing population has increased demand for healthcare services and amenities, driving up costs across the board. While the city remains beautiful and vibrant, it’s no longer the affordable retirement haven it once was.
Tip for Retirees: Explore smaller Oregon cities like Salem or Eugene, where living costs are still more manageable.
6. Denver, Colorado
Denver was once affordable for retirees who loved mountains, outdoor activities, and access to quality healthcare. Now, it’s among the most expensive cities in the western U.S., with median home prices exceeding $600,000 and climbing.
The influx of younger professionals, combined with limited housing inventory, has pushed many retirees to consider nearby suburbs or even other states. Additionally, everyday expenses like groceries and dining have risen significantly due to Denver’s booming population.
Tip for Retirees: Consider smaller towns in Colorado’s Western Slope or southern region, which offer scenic beauty without Denver’s high price tag.
7. Scottsdale, Arizona
Arizona’s warm climate and tax-friendly environment used to make it a go-to retirement destination, but Scottsdale’s housing market has exploded in price. Luxury developments, combined with a surge of new residents, have driven up costs for both homes and rentals.
What was once an affordable desert retreat now rivals some California cities in terms of housing costs. Seniors looking for budget-friendly living often have to look outside of Scottsdale.
Tip for Retirees: Nearby towns like Mesa or Apache Junction still offer affordability compared to Scottsdale’s high-end neighborhoods.
8. Charleston, South Carolina
Charleston’s southern charm, history, and coastal beauty made it a top retirement spot. But its popularity has brought rising housing prices, increased tourism costs, and higher property taxes.
The influx of remote workers and vacation home buyers has made it difficult for retirees to find affordable housing. Even the cost of dining and entertainment has increased as Charleston caters to a wealthier crowd.
Tip for Retirees: Look to smaller nearby towns like Summerville or Beaufort for a slower pace and lower costs.
9. Naples, Florida
Naples was once one of Florida’s more affordable beach towns. Today, it’s one of the most expensive, with median home prices exceeding $600,000. Wealthy out-of-state buyers have driven up prices, and property taxes and insurance costs have followed.
Retirees who planned to live on a fixed income now find Naples increasingly inaccessible unless they have significant savings.
Tip for Retirees: Explore nearby towns like Cape Coral or Fort Myers for a more budget-friendly option with similar amenities.
10. Boise, Idaho
Boise was once one of the best-kept secrets for affordable retirement. But over the past few years, its housing market has skyrocketed due to an influx of Californians and other out-of-state buyers.
The median home price in Boise has doubled since 2015, and everyday costs, from groceries to healthcare, have risen alongside it. Retirees who once considered Boise a financial haven are now priced out.
Tip for Retirees: Look at smaller Idaho towns, like Twin Falls or Pocatello, where living expenses remain lower.
Why These Spots Became Expensive
Several factors have contributed to these rising costs:
- Influx of remote workers who can afford higher housing prices.
- Limited housing supply combined with increased demand.
- Tourism-driven economies that prioritize luxury living.
- Rising property taxes and insurance costs in coastal or high-risk areas.
- Inflation and higher healthcare costs hit retirees the hardest.
These shifts mean that even states once known for affordable living are no longer budget-friendly for retirees.
How Retirees Can Still Find Affordable Options
If your dream retirement spot is now priced out, there are alternatives:
- Explore smaller towns or suburbs near popular cities.
- Consider states with no income tax like Tennessee or parts of Florida (outside premium markets).
- Look for growing but not-yet-trendy locations that offer value before they become overrun.
- Rent before buying to see if the area truly fits your budget and lifestyle.
- Expand your search internationally, as some retirees are finding better value abroad in countries like Portugal or Mexico.
Is Your Dream Retirement Location Still Affordable?
The idea of an affordable retirement spot is quickly fading in many once-budget-friendly areas. Housing booms, rising costs, and shifting demographics mean that today’s retirees need to look beyond traditional hotspots to find value.
Which formerly affordable retirement destination do you think has changed the most, and where do you see retirees heading next?
Read More:
7 Financial Moves That Made Retirement Way Harder Than Expected
Why Selling Your Home for Cash Could Backfire in Retirement
Riley Schnepf is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.
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