Do you crave a warm-weather lifestyle but wonder if it’s financially feasible in retirement with rising housing costs? The good news: It is. Retiring in a sunny weather destination doesn’t have to drain your savings.
There are still plenty of places where the 65-and-over crowd can keep their monthly costs under $1,750 –and still enjoy mild winters, beautiful scenery and outdoor amenities. For many retirees, renting a home can eliminate unpredictable repair and maintenance costs.
GOBankingRates tapped real estate experts for affordable retirement destinations. From coastal communities to the high desert, here are five cities where you can retire in great weather without overspending.
Tucson, Arizona
The median rent in Tucson is $1,550, with studio apartments averaging $797, one-bedrooms $924 and two-bedrooms $1,266, according to Zillow.
Joseph Keshi, CEO of Keshman Property Management, recommends Tucson for its affordable cost of living and said, “Housing, property taxes and utilities alone account for about $1,750 a month.”
“The retired crowd benefits from health care options, baby-boomer-friendly insurance rates, ties to nature through walkable neighborhoods, and inexpensive recreational options. [Year-round outdoor living] is another advantage, and flooding rain never follows.”
Jeremy Yamamoto, founder of Eazy House Sale, echoed this sentiment.
“Tucson is already a premier desert destination market, and increased availability of 55+ active adult communities results in a strong, competitive market with low HOA fees and housing prices,” Yamamoto added.
He added that in recent years, retirees have been drawn to Tucson’s affordable health care costs, which he said rank below the national average, and its mild climate keeps costly winter heating bills in check.
“Its small town vibe within a major metro city means there is close and affordable access to all the necessities,” Yamamoto noted.
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El Paso, Texas
With more than 300 days of sunshine a year and low crime rates, El Paso offers peace of mind and cost savings.
“The city is a top financial pick, given that housing prices are still roughly 50% cheaper than the national median and there’s no state tax on retirement income or Social Security,” said Yamomoto. “That represents a significant reduction in expenses, which leaves a $1,750 budget to spread over quality health care, [dining and entertainment].”
The monthly median rent in El Paso is $1,500, with studio apartments averaging $781, one-bedrooms $838, two-bedrooms $1,100, and three-bedrooms $1,610, according to Zillow.
Gulfport, Mississippi
Retirees who aspire to live on the Gulf of Mexico can find a coastal oasis in Gulfport, Mississippi, without paying the high prices found in major Gulf cities.
“Mississippi is extremely tax-friendly for retirees, as it taxes neither Social Security benefits nor income from qualified retirement plans like IRAs and 401(k)s. And with a cost of living nearly 14% below the national average, seniors can afford to live close to the water while still well within their budget each month,” explained Yamomoto.
The median monthly rent in Gulfport is $1,500. Retirees can find studio apartments for an average of $797, one-bedrooms for $895, two-bedrooms for $1,300, and three-bedrooms for $1,600.
Daytona Beach, Florida
Retirees can enjoy a classic Florida lifestyle in Daytona Beach, where median home prices are typically 15% below the state average, said Yamamoto. The median monthly rent in Daytona Beach is $1,600, with studio apartments averaging $1,156, one-bedrooms $1,250, and two-bedrooms $1,550, according to Zillow.
“Daytona is one of the last beachfront bastions of affordable living,” Yamomoto said.” It’s part of the financial appeal, helped by Florida’s not having a state income tax, so more money remains in that now-retiree’s pocket to be used for food and shopping or local entertainment or trips.”
The affordability and appeal of living close to the coast make Daytona Beach an attractive option for those on a limited pension, said Yamomoto.
McAllen, Texas
With a cost of living more than 20% lower than the national average, low-income taxes, no state income tax, and housing costs about 32% less than the U.S. average, McCallen is “among the most affordable cities in the nation,” Yamamoto said.
“The city’s year-round tropical [feel] is enhanced by its location on the Rio Grande, and it’s perfect for people who crave an active yet affordable lifestyle,” he added.
In McAllen, the median monthly rent is $1,350, with one bedrooms averaging $750, two-bedrooms $1,100, and $1,600 for three bedrooms, according to Zillow.
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This article originally appeared on GOBankingRates.com: 5 Cities Where You Can Retire in Great Weather for $1,750 a Month
