It feels like a game of Whac-A-Mole: As soon as an affordable city gets “discovered,” it gets flooded with people and becomes expensive.
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These once-affordable cities are getting too expensive for many retirees, but consider the following alternatives as you hunt for the right retirement housing market.
1. Tampa, Florida
- Average home price: $374,888
Rising home prices, property taxes and insurance premiums have changed the equation for many would-be Tampans.
“We’re seeing more buyers shift their focus to cities like Ocala, where home prices and ongoing expenses feel more manageable,” noted Lesley Hurst of title company Penn Charter Abstract. While not on the coast, Ocala sits nestled between several lakes. Home prices also cost over $100,000 less, averaging $269,576.
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2. Phoenix
- Average home price: $410,169
Desert land isn’t always cheap, as Phoenix and neighboring Tempe ($468,281), Mesa ($435,134) and Scottsdale ($858,022) can attest.
“When you factor in higher utilities, HOA fees and other cost of living increases, it becomes a tougher market for fixed-income buyers,” explained real estate investor Austin Glanzer of 717HomeBuyers. “Many retirees have looked to nearby satellites like Casa Grande, where they can still find strong value without sacrificing lifestyle.”
At an average price of $319,032, homebuyers can get in cheaper while still enjoying access to Phoenix.
3. Nashville, Tennessee
- Average home price: $434,338
A pandemic darling, Nashville home values exploded 46% from mid-2020 to mid-2022. They’ve since hovered flat, as incomes slowly catch up.
To enjoy a similar Tennessee culture and experience, try Knoxville. Home prices cost 15% less at $369,216, and you still pay no state income taxes, and have access to great healthcare and outdoor recreation in the Great Smoky Mountains National Park.
4. Austin, Texas
- Average home price: $508,530
Austin was another pandemic darling that boomed too big for its britches — if inseams were measured in local incomes.
It too has seen a housing correction in recent years, but it remains expensive. As an alternative for retirees on a fixed income, Realtor and estate planning expert Greg Reese of AmeriEstate recommended Wichita, Kansas. “The cost of living is lower and more predictable, yet healthcare and transportation remain relatively easy,” he said.
He’s not kidding about the cost of living. Homes average just $202,720, and the city’s arts and culture scene has popped since the pandemic ended.
5. Raleigh, North Carolina
- Average home price: $433,996
A decade ago, retirees flocked to Raleigh for its affordable housing, strong healthcare and food scene. It doesn’t look quite so affordable post-pandemic.
“Retirement value seekers are discovering Huntsville, Alabama, as an alternative,” noted real estate expert Ben Mizes with Clever Offers. Homes average just $287,569, and Alabama doesn’t tax Social Security income.
Beyond cost of living, Huntsville offers great healthcare, a vibrant arts scene, and outdoor recreation with its proximity to mountains and lakes.
To keep your nest egg intact, explore these lower-cost alternatives to previously hyped retirement hubs.
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This article originally appeared on GOBankingRates.com: 5 ‘Affordable’ Cities Getting Too Expensive for Retirees — Here’s What Replaced Them
