Are You a Retiree Looking To Downsize? Consider These 20 Cities

Downsizing in retirement is a smart financial and lifestyle strategy. An estimated 11,200 Americans retire every day, and many are reevaluating not just how they spend their time, but where they want to spend it.

A 2025 survey found that half of boomers would consider downsizing. That decision often coincides with becoming an empty nester, freeing up the chance to move somewhere warmer, quieter, or simply more affordable. Meanwhile, AARP reports that access to quality healthcare and low taxes are consistently ranked as top priorities for retirees when choosing where to live.

The cities on this list combine budget-friendly living with features that matter most to retirees, like low property taxes, accessible healthcare, pleasant weather, and welcoming communities. Whether you’re drawn to the beach, a vibrant college town, or a place with a slower pace and strong social ties, these 20 cities make it easier to downsize without feeling like you’re giving anything up.

20. Green Bay, Wisconsin

With a cost of living 19% and utility costs 33% below the national average, Green Bay is affordable. The city offers excellent local healthcare and walkable neighborhoods. Summers are great but on the downside, winters can be pretty intense.

19. Hot Springs, Arkansas

A much warmer locale is Hot Springs, which is home to a national park of the same name, showcasing the ancient thermal pools. The cost of living is 7.5% below the national average, and Arkansas offers tax exemptions on Social Security, helping retirees keep more of their income.

18. Bloomington, Indiana

Home to Indiana University, Bloomington offers top-tier healthcare. There’s no tax on Social Security and property taxes are low. The cost of living is 11.2% below the national average.

17. Savannah, Georgia

This historic coastal city is attractive to retirees who still want a semi-urban lifestyle. There’s awesome food and great beaches nearby. Plus, Georgia exempts Social Security income and offers additional retirement tax breaks. Housing costs are 7% below the national average.

16. Raleigh, North Carolina

An even more urban option is Raleigh, home to North Carolina State University. Chapel Hill and Durham are nearby, making up the Research Triangle. Some say this offers college-town energy without huge metro prices. The state has a flat 4.25% income tax and offers Social Security exemptions.

15. Wilmington, North Carolina

To the southeast is Wilmington, a coastal town. The cost of living is 4% below the national average, while housing is 23% cheaper than the U.S. average.

14. Albuquerque, New Mexico

For a completely different lifestyle, consider Albuquerque, New Mexico’s largest city. Residents love the local arts and food scenes. The city boasts over 1,500 healthcare facilities and 22 hospitals. Retirees benefit from Social Security tax exemptions if their income is below $100,000. If filing jointly, this exemption goes up to $150,000.

13. Myrtle Beach, South Carolina

Back to the South, we have Myrtle Beach, a popular tourist and retiree destination. There are many outdoor activities for fit seniors. Property taxes average just 0.53%, and there’s no tax on Social Security benefits.

12. Sandy Springs, Georgia

This Atlanta suburb offers 22 miles of river shoreline and a walkable downtown. The cost of living is 5% below the national average. As mentioned earlier, Georgia offers retirement income tax breaks.

11. Prescott, Arizona

One of the most tax-friendly places for retirees, Prescott has a large senior population. The city is known for its music scene and nearby Watson Lake offers many activities.

10. Lakeland, Florida

East of Tampa, Lakeland is known not only for its many lakes, but also for its historic district, filled with antique shops and museums. The cost of living is 9% below the national average, and Florida has no state income tax.

9. Knoxville, Tennessee

Tennessee is another state without an income tax, which makes Knoxville an attractive option. This livable city has excellent healthcare options. The cost of living? 8.2% below the national average.

8. Punta Gorda, Florida

Located in southwest Florida, Punta Gorda has about 20,000 residents. Residents enjoy the year-round warm weather and low cost of living. Housing costs are 17% below the national average.

7. Huntsville, Alabama

The most populous city in Alabama is known for its military and space facilities. The cost of living is low, and Alabama exempts Social Security and pension income from taxation.

6. Daytona Beach, Florida

When “beach” is part of a city’s name, there’s bound to be year round sun fun. The cost of living is 3% to 6% below the national average, and considerably lower than other Florida beach cities. Retirees report that housing is affordable.

5. Ann Arbor, Michigan

Another big college town, Ann Arbor is beloved by many retirees. The city offers top-tier healthcare and is very walkable. Home prices average around $346,800.

4. Montgomery, Alabama

The state capital of Alabama is known for its museums and civil rights legacy. The cost of living is 11% below the national average, with housing being 25% less than national averages.

3. Charleston, South Carolina

Similar to Savannah is Charleston, a historic coastal city. A popular tourist destination, the city is known for its arts and food scenes. The cost of living is about average, but there are low property taxes and no tax on Social Security.

2. Decatur, Alabama

Known as the “River City,” Decatur offers a lower cost of living. Seniors are exempt from state property taxes.

1. Fort Wayne, Indiana

This affordable city offers many trails along its riverbanks. The cost of living is well below the national average, with housing being 25% cheaper. Indiana has a low flat tax and Social Security income is exempt.

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