America’s Up and Coming Retirement Towns – 2023 Study

Patrick Villanova | MAY 10, 2023

As millennials continue to move to hot spots like Austin, Denver and Dallas, some lesser-known communities are attracting retirees. Smaller cities and towns across the country have seen significant population growth in recent years among people aged 65 and older, turning them into up-and-coming destinations for retirement. 

To see how these up-and-coming retirement towns stack up against each other, SmartAsset examined data that measured their health care options, comfortability and affordability.

Key Findings

• Texas and Florida towns dominate the top 10. The Lone Star and Sunshine states account for seven of the 10 best up-and-coming retirement towns in the country. And because neither Texas nor Florida impose state income taxes, eight of the 10 places that rank best for affordability are also in both states. 
• The least affordable retirement destinations are in coastal areas. All 10 of the most expensive up-and-coming retirement towns are located relatively close to the ocean, including San Ramon, Watsonville, Dublin, El Dorado Hills, Huntington Station and Old Bridge. The high cost of living and income taxes in California, New York and New Jersey help contribute.
• If you’re looking for moderate temperatures, this Texas city ranks No. 1. League City, located between Houston and Galveston, averages more days (211.20) when the temperature stays between 45 and 85 degrees than any other city in our study.
• Retiring in this up-and-coming California city will cost you most. Watsonville, which sits south of Santa Cruz along the Pacific Coast Highway, requires an after-tax income of $46,472 to meet the basic cost of living. That’s higher than any of the 83 other towns and cities we evaluated. Meanwhile, you’ll need just $27,718 after taxes to live in Edinburg, Texas, which has the lowest cost of living in our study.  

America’s Up and Coming Retirement Towns

1. Edgewater, FL
   Located about half-hour south of Daytona Beach, the city of Edgewater experiences more than 160 pleasant weather days each year – seventh-most. Meanwhile, the city also ranks sixth for overall health care, making it an attractive destination for retirees who want to live near quality hospitals. Nearly 40% of the hospitals in Edgewater are rated as top-tier facilities. 
2. League City, TX
   Home to approximately 112,000 residents, League City has the highest comfort score across our study thanks to an average of over 211 pleasant weather days each year. The city also has the second-most dining and entertainment venues per 1,000 establishments, as well as the 12th-lowest violent crime rate (83.57 per 100,000 residents). 
3. Godfrey, IL
   Located about 30 miles north of St. Louis, the village of Godfrey has the second-lowest percentage of residents 65 and older who are housing-cost burdened (13.96%). People who are 65 and older comprise 28% of the population of Godfrey, which is home to the fifth-most nursing homes per 10,000 residents (4.37). Meanwhile, Godfrey also has the ninth-most dining and entertainment establishments (111.11) per 1,000 businesses.  
4. Killeen, TX
   Killeen scores high for affordability, thanks in part to no state income tax in Texas. The city of 150,000 residents requires an after-tax income of just $27,767 to cover the basic cost of living, second-lowest of up-and-coming retirement towns. Located between Austin and Waco, Killeen is also home to more nursing homes per 10,000 residents (4.85) than any other place on our list. 
5. Huntsville, TX
   Like Killeen, Huntsville also scores highly for overall affordability. A person needs just $28,358 in after-tax income to cover the basic cost of living in Huntsville – fifth-lowest out of the 84 towns. Located about 70 miles north of Houston, Huntsville has 3.60 nursing homes for every 10,000 residents (10th-most), as well as the 15th-most pleasant weather days (131.97 per year). 
6. South Portland, ME
   South Portland is the only Northeastern city in our top 10, but it has the highest overall health care score. Known locally as “SoPo,” the fourth-largest city in Maine has the 10th-most doctors per capita and 12th-most nursing homes (3.53) per 10,000 residents. Meanwhile, those looking to retire in South Portland can expect to pay 6.3% in combined state and local sales tax, which is 11th-lowest. 
7. Estero, FL
   With no state income tax, Estero is among the most affordable places for retirees in our study. More than half of Estero’s residents are 65 and older, and they get to enjoy nearly 122 pleasant weather days per year along Florida’s west coast. Additionally, Estero has the eighth-lowest violent crime rate and 16th-lowest property crime rate across our study. 
8. Huntersville, NC
   More than 44% of hospitals in this suburb of Charlotte have an “A” rating, contributing to Hunterville’s eighth-best overall health care score. Meanwhile, this town’s 60,000 residents pay 7% in state and local sales tax, tied for the 15th-lowest across our study. Only about a fifth of people age 65 and older are housing-cost burdened in Huntersville, which ranks 15th-best among up-and-coming retirement towns.  
9. Deer Park, TX
   Located in the greater Houston area, Deer Park ranks ninth for overall comfort. Retirees who call Deer Park home get to enjoy more than 168 pleasant weather days each year, fourth-most across our study. This city of more than 34,000 people also ranks in the top 25% for nursing home access (2.79 per 10,000 residents).
10. Englewood, FL
    No place scored higher for overall affordability than Englewood, a Census designated place on Florida’s west coast. Englewood residents benefit from not having to pay state income tax, as well as the 23rd-lowest combined state and local sales tax (7%). Meanwhile, just 17.11% of Englewood’s 65-and-over residents are housing-cost burdened, which is fifth-lowest across our study. 

Most Affordable Up and Coming Retirement Towns

These places have the best affordability scores in part because nearly all of them are located in states that do not levy state income taxes. Plainfield, Indiana, is the only place that ranks in the top 10 for affordability where residents pay state taxes on their ordinary income. 

1. Englewood, FL
2. North Port, FL
3. Plainfield, IN
4. Estero, FL
5. Huntsville, TX
6. Royal Palm Beach, FL
7. Wildwood, FL
8. Killeen, TX
9. Leesburg, FL
10. Farragut, TN

Best Up and Coming Retirement Towns for Health Care

1. South Portland, ME
2. Old Bridge, NJ
3. St. Louis Park, MN
4. Longmont, CO
5. Dublin, CA
6. Edgewater, FL
7. Cornelius, NC
8. Huntersville, NC
9. Windsor, CO
10. Apopka, FL

Most Comfortable Up and Coming Retirement Towns

These towns scored highest for overall comfort, in part because they tend to stay relatively temperate. All but one – Flower Mound, Texas – ranks in the top 30 for average number of pleasant weather days.

1. League City, TX
2. Bluffton, SC
3. Flower Mound, TX
4. Mount Pleasant, SC
5. Godfrey, IL
6. Frisco, TX
7. San Ramon, CA
8. Mililani Town, HI
9. Deer Park, TX
10. Huntington Station, NY

Data and Methodology

To find America’s up-and-coming retirement towns, SmartAsset analyzed available data for 84 cities that met the following criteria: 

• At least 5,000 people aged 65 and older, but excluding the 100 largest cities
• At least 25% population growth for residents 65 and older between 2017 and 2021
• Positive net migration of the 65 and older population in 2021

Population and migration data comes from the Census Bureau’s 2021 1-year American Community Survey.

We compared these 84 cities across three categories that include eleven individual metrics:

• Affordability. Affordability includes the estimated post-tax annual cost of living for an individual with no kids, state income tax, sales tax and the percent of 65 and older residents that are housing cost-burdened (those who spend 30% or more of their income on housing). Data comes from the MIT Living Wage Calculator (2022), Tax Foundation (2023) and Census Bureau’s 2021 1-year American Community Survey.
• Health Care. This category includes the number of medical doctors (MD) per 100,000 residents, nursing homes per 10,000 residents aged 65 and older and the percentage of hospitals with an “A” rating. Data comes from Health Resources & Services Administration (HRSA) (2021), Census Bureau’s 2020 County Business Patterns Survey and the Leapfrog Hospital Safety Grade (2022).
• Comfort. Comfort considers the violent and property crime rate, as well as the average number of pleasant weather days as defined by the number of days with a temperature between 45 and 85 degrees Fahrenheit, and dining and entertainment establishments per 1,000 establishments. Crime data comes from the FBI (2021); missing crime data was supplemented by NeighborhoodScout.com. Weather data comes from NOAA’s Global Summary of the Day (recent as of 2023). Business establishments data comes from the Census Bureau’s 2020 County Business Patterns Survey.

Retirement Planning Tips

• Evaluate your state’s tax-friendliness. SmartAsset’s retirement tax friendliness calculator can help you better understand how your current state – or the state you’re planning to move to – will tax your retirement income. Alaska, Florida, Georgia, Mississippi, Nevada, South Dakota and Wyoming are the most tax-friendly states for retirees. 
• Consider an annuity. Annuities can generate a lifetime stream of income exchange for a lump sum or a series of payments. Schwab says now may be the time to consider buying a single premium immediate annuity (SPIA) since payout rates are higher than they’ve been in more than a decade. 
• Hire a professional. A financial advisor can help you plan for your personal retirement goals. SmartAsset will match you with three financial advisors for free.

Questions about our study? Contact us at press@smartasset.com

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