Unveiling the True Cost of Living in Top Cities

Is warmer weather and affordable living something you desire in retirement? If so, the southern U.S. may be the place for you. Many retirees are flocking to the South for its tax-friendliness, agreeable climate, and below-average cost of living compared to other parts of the U.S.

In partnership with Southern Living, Investopedia staffed editors analyzed and scored data from the U.S. Census Bureau and other publicly available data sources (see our Methodology below) to reveal the cost of retirement in over 600 locations and identify where your money may go the farthest.

Our staff experts narrowed down that long list to 10 standout cities for retirees where your money might go farther. Hot Springs, Arkansas, Englewood, Florida, and Charleston, West Virginia ranked as the top three. Dive in to see what makes these locations and others so retirement-friendly.

1. Hot Springs, Ark.: America’s Spa

Hot Springs’ low cost of living and lack of state property taxes helped this location top our list for retirees in 2024. However, there’s much more to Hot Springs than those important qualities.

 If you want to be close to nature and have an active lifestyle in retirement, this is the spot for you. Hot Springs, Arkansas, is home to Hot Springs National Park and the Diamond Lakes—which gives great access to scenic biking, hiking, fishing, and water sports.

About 22.7% of Hot Spring’s population is 65 years or older, with the median age being 44.7.

Housing Costs

The median housing costs in Hot Springs are 30% less than the average in the South ($810 per month versus $1,163). You can find apartments for as low as $500 a month, and median home sale prices were at $242,530 as of December 2024, potentially making it an affordable option for both renters and buyers—especially those relocating from higher-cost areas.

Hot Spring City residents earn an average household income of $46,537 between 2018 and 2022, with the national median for that time frame landing at $74,580.

2. Englewood, Fla.: A Coastal Oasis

When one thinks of Florida, it’s not uncommon to also think of retirement, so it may not be a surprise a Florida location is on our list. However, the lesser-known town of Englewood is worthy of taking a second look. Its growing popularity among retirees is showing, too, as the median age is 67.8. 

Englewood offers easy beach access, golf courses, parks, and a below-average crime rate. The Olde Englewood shopping district has various restaurants and a farmer’s market, too.

Cost of Living

Englewood’s median income is $61,734. Although this is lower than the national median of $74,850, residents get more for their buck due to the lower median home values.

As of December 2024, Englewood’s median home value is $363,215, which puts its income-to-home value at about 16.67%. The national income-to-home value lands at 18.1% (based upon a median home price of $412,300 as of the second quarter of 2024), giving Englewood a more favorable percentage.

Overall, Investopedia’s research found the median monthly housing cost is a wallet-friendly $779—33% lower than the South’s overall average.

3. Charleston, W.Va.: Urban Living with a Mountain View

If you crave four seasons and scenic mountain living, Charleston, West Virginia, is the place for you. 

Though the capital city has a population of 48,864 and a younger median age of 42.2, this city still offers a great appeal for your later years. In fact, the state even lists the city as a “Designated Retirement Community.” 

Charleston offers fantastic healthcare access, robust arts and culture, and various outdoor activities like hiking and biking. Take a trip to Coonskin Park, located just 10 miles from Downtown, to find some beautiful nature sights.

Affordable Housing

Charleston’s main perk for retirement planners is its affordable cost of living. As of December 2024, the median home sale price was $154,925, which is significantly cheaper than the national price of $412,300. Charleston is also renter-friendly, with a median rent price of $900.

4. Valdosta, Ga.: A Vibrant Destination for All Ages

If you crave an active lifestyle during retirement, Valdosta, Georgia, is the place to be. It offers world-class golf courses, fantastic hiking spots, and a bustling downtown arts scene.

The population is around 55,000, with a median age of 29.2 (primarily due to Valdosta State University, which has 10,000 students). A huge draw is its affordable housing, with median monthly housing costs of $893, which is 23% less than the South’s median monthly housing costs overall. As of December 2024, the median home sales price was $192,503, which is lower than the national average.

Flat Tax

Georgia is one of 13 states that has a flat income tax. This means that regardless of your income, everyone pays the same percentage, which is beneficial for those with a higher income level in retirement. 

Furthermore, Georgia’s property tax rates aren’t too steep–with an average effective rate of 0.940% for Lowndes County (though there are other areas on our list with more favorable rates).

5. North Myrtle Beach, S.C.: A Relaxing Beach Spot

Who doesn’t want access to a relaxing beach during retirement? North Myrtle Beach spans 9 miles and comprises four communities (Cherry Grove, Windy Hill, Ocean Drive, and Crescent Beach). With a population of about 18,000, you can access beach life while avoiding more crowded spots like Myrtle Beach. 

From an affordability standpoint, South Carolina has a graduated income tax (ranging from 0-6.40%)–so this is an ideal destination if you think you’ll have below-average income in retirement. Regarding state and local tax burden, South Carolina ranks 11th in the country at an 8.9% rate.

Reasonable Property Taxes

As of December 2024, North Myrtle’s median home price was $380,405. While that price tag is higher than other locations on our list, South Carolina’s property taxes are much more manageable, with an average county tax rate of 0.36% (for Horry County).

6. Hickory, N.C.: Idyllic Lake Haven

If small-city living is calling your name, Hickory, North Carolina, could be your retirement dream. Lake Hickory is perfect for boating enthusiasts, and numerous parks, trails, restaurants, and shopping centers populate around this hot spot. 

We think the cost of living is a main draw here, as the median monthly housing costs are $960, 17% lower than the South’s overall median monthly housing costs.

Affordability All-Around

Hickory’s median household income is $58,251, or about $4,854 monthly. As of December 2024, the median home sale price was $279,709, which is lower than other metro areas on our list.

Additionally, Hickory’s median rent was $1,295, meaning roughly 26.7% of monthly income would go towards rent (a favorable percentage). North Carolina also has a flat individual income tax rate of 4.50%, which makes it more attractive for retirees, as this also applies to retirement income.

7. Maryville, Tenn.: Small-Town Charm

Maryville, Tennessee, stands out for its quaint, charming vibes. Located just south of Knoxville, it has a population of about 32,000 and a median age of 41.2. It offers good walkability, historic buildings, and plentiful downtown shopping. For those who want close proximity to the great outdoors, the Smoky Mountains are just a 35-minute drive away.

Tax-Friendly

Tennessee boasts the third lowest average and combined state and local tax in the nation, at 7.6%. Even better, there is no individual income tax—even on retirement plan income—which makes it ideal for retirees with pensions.

One note that home prices aren’t as competitive as other Southern states we evaluated. In December 2024, Maryville’s average home value was $367,001. Overall, the median household income is $74,610, which is on par with the national average of $74,580.

8. Vero Beach, Fla.: An Affordable Seaside Lifestyle

Vero Beach, Florida, is a great beachfront retirement destination with a vibrant arts scene just a short distance away. Retirees may also be drawn to the area for its wide range of outdoor activities, including water sports, golf, fishing, and the opportunity to explore lush botanical gardens. Another perk: it’s not as hot or expensive as other South Florida areas.

Save on Income Tax

The average home sales price in Vero Beach was $370,574 as of December 2024, which is less than the national average. Don’t be frightened by the median rent price of $3,000—plenty of rentals are available in the $1,000s range. Property taxes aren’t bad either, with Indian River County residents paying 0.78%.

That said, a main draw to Florida centers around its taxes. There are no individual income taxes (retirement plan income included), and the average combined state and local sales tax rate of 9.1% ranks 8th best in the nation.

9. Fredericksburg, Tex.: Wine Country Getaway

If you’re a wine connoisseur, Fredericksburg is calling your name. This small town in Texas has a population of just under 11,000 and more than 60 wineries and vineyards. The area also has a rich German history, founded by German settlers in 1846.

Favorable Tax Treatment

While Fredericksburg, Texas, may have higher median housing costs ($1,254) than other locations—and about 8% higher than the Southern average—retirees can still find financial advantages by living here. 

Like Florida and Tennessee, Texas does not impose an individual income tax. Additionally, the state’s state and local tax burden rate of 8.60% is among the lowest in the country, ranking 4th nationwide.

10. Orange Beach, Ala.: Golfing Galore

White sand beaches and championship golf courses make Orange Beach, Alabama, an ideal retirement destination for many. The median age is 51.6, and almost 30% of the population is 65 and older.

Median home prices are steep, sitting at $691,680 as of December 2024. However, this might be skewed to the multi-million dollar homes that line the beach, and there are homes for sale in the low $300,000s.

The median household income is one of the highest on our list at $90,402. This is well above the national median of $74,580.

More Tax Savings

A major advantage of retiring in Alabama is the lack of state taxes on Social Security benefits. Additionally, the state features a graduated income tax with rates ranging from 2% to 5%. Alabama also boasts a relatively low average combined state and local sales tax rate of 9.29%, ranking 13th in the country.

The Bottom Line

When planning where to live in retirement, there are many factors to consider: proximity to family, climate, cost of living, and more. While it can be overwhelming to weigh all these aspects, the good news is that plenty of options can meet your needs—especially these Southern locations.

As Americans live longer and healthier lives, ensuring an affordable retirement is more important than ever. It’s critical to think about how the place you choose to settle will impact your finances and overall quality of life.

The South offers several retirement—and wallet-friendly destinations. Consider Hot Springs, Arkansas; Englewood, Florida; and Charleston, West Virginia, among our other top locations.

Methodology

The places chosen for the final list were selected from all Census Designated Places in southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia). Investopedia collected median household income and monthly housing cost estimates from the 2022 American Community Survey (5-year) for each place in the South. Places for which estimates included large margins of error were removed from the initial list. 

The final list of places was selected by Investopedia staff editors after evaluating: 

1. Housing affordability relative to the South (how each place’s monthly housing costs compare with a weighted average for states in the South);
2. Median income in each place (as a proxy for taxes collected, which may be related to community resources; and
3. Individual reporting on proximity to parks or coastlines, recent changes in the community, and previous reporting by Southern Living highlighting the best places to retire.