Most and Least Affordable Cities for Retirees

Approximately 1 in 6 Americans is aged 65 or older, which is the traditional retirement age in the United States. For many people, reaching retirement age means considering moving to a more inviting locale in which to spend one’s sunset years. While some retirees seek warmth and sunshine, economics also plays an important role. In this study, AdvisorSmith examined metro areas around the country to find the most and least affordable cities for retirees around the country.

To conduct this study, we examined 518 U.S. cities to find those cities where the percentage of the senior-age population was at or above the national average of 16.4%. We also segmented the cities into small, midsize, and large cities based upon the population of the city. We compared the cities based upon a cost of living index to find the cities that are the most and least affordable.

Most Affordable Large Cities for Retirees

1. Youngstown, OH

The most affordable large city for retirees was Youngstown, Ohio. This city, located about halfway between Pittsburgh and Cleveland, boasts a senior population of 21.9%, far above the national average, and a cost of living index of 86.4. Downtown Youngstown has experienced transformation in recent years, adding new cultural and entertainment options.

Rank	City	State	65+ Population (%)	COLI
1	Youngstown	OH	21.9	86.4
2	Toledo	OH	17.1	87.5
3	Akron	OH	18.1	89.4
4	St. Louis	MO	17.1	89.6
5	Cleveland	OH	19.1	90
6	Birmingham	AL	16.4	90.7
7	Greensboro	NC	16.7	91
8	Chattanooga	TN	18.1	91.2
9	Winston-Salem	NC	17.7	91.2
10	Scranton	PA	20.1	91.3
11	Knoxville	TN	18.6	91.6
12	Louisville	KY	16.7	91.6
13	New Orleans	LA	16.5	92.4
14	Albuquerque	NM	17.3	92.9
15	Pittsburgh	PA	20.5	93.1
16	Detroit	MI	16.8	93.2
17	Greenville	SC	16.9	95
18	Syracuse	NY	17.5	95.1
19	Harrisburg	PA	18	95.8
20	Lakeland	FL	20.6	96.4

Most Affordable Midsize Cities for Retirees

1. Charleston, WV

The capital and most populous city in the state of West Virginia, Charleston’s population is over one-fifth seniors, and the cost of living index in the city is a low 83.9. Charleston is home to numerous annual cultural events as well as many historical commercial buildings and museums. Several universities are located in Charleston, including the University of Charleston and West Virginia State University.

Rank	City	State	65+ Population (%)	COLI
1	Charleston	WV	20.5	83.9
2	Saginaw	MI	19.5	84
3	Fort Smith	AR	17.4	84.2
4	Huntington	WV	19.6	84.3
5	Terre Haute	IN	18.3	84.7
6	Jackson	TN	17.9	85.2
7	Joplin	MO	16.7	85.2
8	Topeka	KS	19.1	85.6
9	Flint	MI	18	85.7
10	Shreveport	LA	16.8	85.8
11	Kingsport	TN	22.5	86
12	Alexandria	LA	16.5	86.2
13	Jefferson City	MO	17.5	86.3
14	Monroe	LA	17	86.5
15	Peoria	IL	19	86.7
16	Springfield	MO	16.5	86.7
17	Gulfport	MS	16.4	86.8
18	Davenport	IA	18.3	87.2
19	Evansville	IN	17.9	87.2
20	Rockford	IL	17.7	87.2
21	Macon	GA	17.3	87.2
22	South Bend	IN	16.7	87.2
23	Jackson	MI	18.3	87.4
24	Springfield	IL	18.8	87.5
25	Waterloo	IA	17.7	87.6

Most Affordable Small Cities for Retirees

1. Beckley, WV

Also located in West Virginia, the small city of Beckley has a senior population that composes 21.6% of the population. The cost of living in Beckley is 20% below the national average. Beckley is also host to three universities: West Virginia Institute of Technology, University of Charleston-Beckley, and a branch of Concord University.

Rank	City	State	65+ Population (%)	COLI
1	Beckley	WV	21.6	80
2	Bluefield	WV	22.6	81.2
3	Muskogee	OK	17.1	81.3
4	Marion	IN	19.1	81.8
5	Meridian	MS	17.1	82
6	Pine Bluff	AR	17.5	82.3
7	Shawnee	OK	16.4	82.4
8	Weirton	WV	23.7	82.6
9	Roanoke Rapids	NC	20.3	83.1
10	Clarksburg	WV	19.5	83.4
11	Carbondale	IL	18.5	83.5
12	Muncie	IN	17.8	83.7
13	Danville	IL	19.3	83.9
14	Hutchinson	KS	20.9	84
15	Wheeling	WV	21.8	84.1
16	Richmond	IN	19.3	84.2
17	London	KY	17.1	84.6
18	Parkersburg	WV	20.8	84.7
19	Portsmouth	OH	18.3	84.7
20	Decatur	IL	20.4	84.9
21	Kokomo	IN	19	84.9
22	Martinsville	VA	24.1	85
23	Orangeburg	SC	20.2	85.3
24	Bay City	MI	20.8	85.4
25	Farmington	MO	16.8	85.4

Least Affordable Large Cities for Retirees

1. Honolulu, HI

Honolulu, the capital city of the state of Hawaii, offers warm weather, sandy beaches, and the highest cost of living for retirees among large cities in the United States. Honolulu’s population is 18.3% senior citizens, while boasting a cost of living 58% higher than the national average. While Honolulu may be paradise for some, it comes with a cost.

Rank	City	State	65+ Population (%)	COLI
1	Honolulu	HI	18.3	158
2	Portland	ME	20.1	113
3	Providence	RI	17.5	111.5
4	Miami	FL	18.7	110.1
5	New Haven	CT	17.9	107.7
6	Springfield	MA	18.1	106.5
7	Hartford	CT	17.8	104.8
8	Sarasota	FL	33	104.4
9	Fort Myers	FL	29.2	101.5
10	Tampa	FL	20.1	101.4
11	Spokane	WA	17.1	100.4
12	Albany	NY	18.1	100.1
13	Daytona Beach	FL	25.9	99.6
14	Lancaster	PA	18.3	99.5
15	Melbourne	FL	24.2	99.3
16	Allentown	PA	18.6	98.9
17	Pensacola	FL	17	97.9
18	Tucson	AZ	20.3	97.7
19	Buffalo	NY	18.6	97.3
20	Rochester	NY	18.4	96.6

Least Affordable Midsize Cities for Retirees

1. Santa Cruz, CA

Located on the Pacific coast at the northern part of Monterey Bay, the city of Santa Cruz is the most expensive midsize city for retirees. With a population composed of 17.6% senior citizens, Santa Cruz’s cost of living is 64% above the national average. Water sports are a large part of the Santa Cruz lifestyle, and the city also hosts the University of California, Santa Cruz, a major research university.

Rank	City	State	65+ Population (%)	COLI
1	Santa Cruz	CA	17.6	163.9
2	Kahului	HI	19.3	158.5
3	Santa Rosa	CA	20.7	141.7
4	Hilo	HI	21.9	136.9
5	San Luis Obispo	CA	21.1	136.1
6	Barnstable Town	MA	31.5	122.4
7	Bend	OR	20.7	115.9
8	Bremerton	WA	18.4	115
9	Bellingham	WA	18.3	111.6
10	Olympia	WA	17.7	110.9
11	Chico	CA	18.5	110.5
12	Naples	FL	32.9	109.4
13	Hilton Head Island	SC	26.6	109.4
14	Redding	CA	21.1	108.7
15	Eugene	OR	19.9	108.4
16	Concord	NH	18.6	108.3
17	Medford	OR	23.3	107.5
18	Reno	NV	16.9	107.4
19	Kingston	NY	20.3	106.1
20	New London	CT	18.7	105.9
21	Salem	OR	16.7	105.8
22	Torrington	CT	22	105.2
23	Santa Fe	NM	25.2	105.1
24	Crestview	FL	17.3	104.7
25	Asheville	NC	23.2	103.3

Least Affordable Small Cities for Retirees

1. Kapa’a, HI

Also located in the state of Hawaii, on the eastern shore of the island of Kauai, Kapa’a’s population is over one-fifth senior citizens. Kapa’a is a charming town with unique stores and classic local food. The small city also has a very high cost of living, with prices being 65% above the national average.

Rank	City	State	65+ Population (%)	COLI
1	Kapa'a	HI	21.1	164.9
2	Napa	CA	19.6	149.6
3	Key West	FL	23.7	140
4	Truckee	CA	27.8	132.8
5	Ukiah	CA	23.4	128
6	Glenwood Springs	CO	16.4	127.8
7	Oak Harbor	WA	24.1	125.2
8	Eureka	CA	18.4	116.5
9	Kalispell	MT	20.2	112.7
10	Mount Vernon	WA	21.6	110.1
11	Shelton	WA	23.8	109.6
12	Ocean City	NJ	27	109.5
13	Port Angeles	WA	30.5	109.1
14	Clearlake	CA	22.3	108.8
15	Grants Pass	OR	26.4	106.6
16	Wenatchee	WA	19.4	106.6
17	Pittsfield	MA	24.1	106.4
18	Albany	OR	19.1	105.4
19	Helena	MT	19.7	104.2
20	Sevierville	TN	20.4	103.5
21	Centralia	WA	21.5	103.3
22	Carson City	NV	21.2	103
23	Morehead City	NC	25.7	102.2
24	Keene	NH	20.7	102.1
25	Coos Bay	OR	26.8	102

Methodology

In this study, AdvisorSmith determined the most and least affordable metropolitan statistical areas, which we term cities, in the United States for retirees. To conduct this analysis, we used data from the U.S. Census Bureau on the age composition of 518 cities around the country. 

We first determined the percentage of the population nationwide aged 65 or older. Overall, 16.4% of the population nationwide fell into this demographic category. We then examined cities in the census data where at least 16.4% of the population was 65 or older, meaning that each city considered had an average or above-average senior-aged population. We considered these cities since cities with a higher proportion of seniors may indicate that the city is attractive for retirees.

Next, we divided the cities into one of three groups based upon the population of the city. Cities with under 150,000 residents were labeled small cities. Cities with between 150,000 and 500,000 residents were labeled midsize cities, and cities with over 500,000 residents were labeled large cities. 

We used data on the cost of living from AdvisorSmith’s City Cost of Living Index, which provides information about the cost of necessities such as housing, transportation, food, and other living costs for metropolitan areas around the country. For each city, we examined the cost of living and ranked the cities within their population cohorts to find the most and least affordable cities for retirees.

Sources

1. AdvisorSmith Cost of Living Index
2. U.S. Census Bureau, American Community Survey, Age and Sex