For years, some states were considered havens for retirees. They boast low taxes, mild weather, and affordable living, which made them magnets for older adults. But today, these states have become unaffordable for a variety of reasons. Rising housing costs, higher healthcare expenses, and changing tax policies are making it impossible for retirees to afford living there. Here are eight states where the golden years are costing more than expected.
1. Florida
Florida has long been the crown jewel of retirement-friendly states. Gorgeous weather and no state income tax are among the reasons why it is so popular. But housing costs have skyrocketed. The median home prices have risen dramatically since 2020. In addition, property insurance premiums have doubled in many areas due to hurricane risks and damage over the last few years. For many retirees, the Sunshine State no longer feels financially attainable.
2. Arizona
Arizona once drew retirees with affordable desert living. But home prices in cities like Phoenix and Tucson have surged well beyond what fixed incomes can handle. Phoenix home values have risen faster than national averages in recent years. Meanwhile, healthcare costs are climbing. This is due to factors like increased labor costs and provider consolidation. Once budget-friendly, Arizona is pricing out many seniors.
3. Texas
Texas attracted retirees with no state income tax and low housing costs. But this is no longer true. Property taxes have soared, often outpacing retirees’ Social Security income. The median property tax bill in Texas rose by 26% between 2019 and 2023, increasing from $3,900 to $4,916. Utility bills are climbing as well due to extreme heat waves. While it remains one of the most retirement-friendly states in theory, the affordability advantage has largely vanished.
4. Nevada
Known for no state income tax, Nevada was once a favorite for retirees. Plus, there is plenty of entertainment for retirees in the state. But in recent years, rents and housing prices in both Las Vegas and Reno have surged. Nevada now is among the states that are facing a housing crisis. Add in water shortages and rising utility costs to the mix, and the state is not ideal for retirees.
5. North Carolina
North Carolina marketed itself as a budget-friendly state with a wide array of landscapes. From gorgeous coastal beaches to scenic mountain towns, there truly is something for everyone in the state. But in popular areas like Raleigh, Charlotte, and Asheville, home prices and property taxes have soared. Demand from out-of-state buyers and burgeoning industry have driven costs up dramatically. While healthcare access is strong, affordability is slipping fast.
6. Colorado
Colorado’s mountain lifestyle once came at a reasonable price, but not anymore. Housing prices in Denver, Boulder, and resort towns are sky-high. The reason? Demand mostly fueled by young professionals. As a result, living costs and property taxes are too high for many retirees. Healthcare and insurance costs are also steep. For retirees, Colorado’s beauty now comes with a premium.
7. Oregon
Oregon attracted retirees with its natural beauty and absence of sales tax. But property taxes, housing prices, and healthcare costs are too much for fixed incomes. Everyday expenses are pricey too. Oregon is no longer the bargain it once was for retirees.
8. South Carolina
South Carolina has been viewed as one of the more affordable retirement-friendly states, with mild weather and tax breaks for seniors. But rising property taxes and rapid housing price growth are eroding its appeal. Charleston and coastal areas are pricing out retirees. Flood insurance is also becoming more expensive due to climate risks.
Why These Shifts Matter for Retirees
Retirement-friendly states aren’t always affordable in the long run. Rising housing costs, higher healthcare expenses, and local taxes are changing the financial picture. Retirees relying on fixed incomes may find themselves forced to move again or downsize to keep up. What used to be affordable havens may no longer offer the financial security retirees need.
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