The 20 Best Affordable Cities for Retirees to Downsize

One of the biggest advantages of retirement is the opportunity to reset your lifestyle. For many, that means reevaluating where and how they live. Downsizing can reduce expenses, simplify day-to-day responsibilities, and free up more time and money to focus on what matters most.

For millions of retirees, this transition often coincides with becoming empty nesters, leaving them with more space than they need. That shift can make it an ideal time to relocate to a more affordable area, a warmer climate, or a city that better fits their financial goals. Choosing the right location can stretch retirement savings further while maintaining a comfortable quality of life.

Future residents of Green Bay, Wisconsin, should look at the immediate benefits of a cost of living 19% below the national average, along with utility costs that are 33% below the national average. Instead, spend your money on travel and the great healthcare in the area, thanks to a cost of living that is 10% lower than the national average.

Hot Springs, Arkansas, won't be anyone's first guess as a new city to move to and downsize to, but with a cost of living 7.5% below the national average, there are savings aplenty. The city offers a humid subtropical climate while being tax-friendly to retirees, which means more money to spend on boating, hiking, and everyday activities.

If you're looking to move to Bloomington, Indiana, it's a great idea with a cost of living that is 11.2% less than the national average. Hot summers and cold winters are typical, but you can also access Indiana University, which means excellent healthcare. There are also no state Social Security Taxes and low property taxes.

While Savannah, Georgia, might be another city slowly becoming a tourist destination, it's hard to ignore housing costs that are 7% lower than the national average. Rich with history and closer to the water, there is always something to do locally, and plenty of outstanding restaurants are located in the area.

With the state income tax now at a flat 4.25%, Raleigh, North Carolina's attraction continues to grow. A great weather climate and Social Security tax exemptions make this state capital and college town a very good choice for downsizing. You also have outstanding medical care and plenty of outdoor activities to do year-round.

Wilmington, North Carolina, is a good alternative to Myrtle Beach without the tourists. Its cost of living is about 4% lower than the national average, while homes are 23% lower than the same national average. With mild weather, there are plenty of outdoor natural and historic sites to visit regularly.

One of the immediate benefits of moving to Albuquerque, New Mexico, is the tax exemption from Social Security benefits for retirees. Add in 22 hospitals, 1,500 healthcare facilities, a low cost of living, and plenty of arts and cultural things to help keep you occupied.

Knowing that homeowners pay, on average, only 0.53% on property taxes, Myrtle Beach, South Carolina, is an easy choice for a retirement destination. Yes, you'll have to navigate tourists year-round, but there is plenty to do, including shopping and all the beach activities you could ever hope for.

With a cost-of-living of 5.1% below the national average, Sandy Springs, Georgia, offers much to enjoy, including 22 miles of shoreline and plenty of walkable downtown areas with restaurants and activities for retirees. Georgia also exempts Social Security and retirement income, so it's a win-win for retirees.

For those who like year-round sunshine, Prescott, Arizona, has become a go-to for downsizing retirees. It's among the most tax-friendly locations and offers so much to do. As a bonus, 30% of the population is 65 and over, so much of the area is geared toward retirees with theaters, galleries, and music venues.

A hidden gem in the Sunshine State, Lakeland, Florida, is a great place to call home with a cost of living that is 9% below the national average. You also have plenty to do around historic downtown LakeLand, as you and other retirees will enjoy shops, museums, and year-round cultural events.

Knoxville, Tennessee, offers a cost of living that is 8.2% below the national average if you want to be in the middle of the country. The subtropical climate in the area has mild winters for year-round outdoor activity and quick access to healthcare centers like the University of Tennessee Medical Center.

With a cost of living that is 3% below the national average, Punta Gorda, Florida, offers plenty of benefits to help stretch your retirement savings. Not only do you get good weather all year round, but healthcare costs are inexpensive, while housing is 17% lower than the US average, making this city location a great place to consider for downsizing.

Situated in the northern hills of Alabama, Huntsville is a diamond-in-the-rough retirement city for those looking to downsize. The competitive housing price and low cost of living attract new residents, as does the mild weather and heavily outdoorsy lifestyle.

Once a wildly popular spring break destination, Daytona Beach, Florida, has grown up while offering year-round sunshine. There is always something to do, from NASCAR racing to museums and the Daytona Beach Boardwalk. It doesn't hurt that the cost of living is around 12% below the national average either.

A surprising choice given the potential for snow during the winter months, but it's hard to ignore the value you can get in Ann Arbor, Michigan. If you do enjoy seasonal changes, you'll find this location right at home. There's plenty to do with the University of Michigan, sports all year, and restaurants galore. Best of all, the average price of a home is around $346,800, making it very affordable.

For those looking to downsize and save money, the cost of living in Montgomery, Alabama, is around 12% lower than the national average, while housing costs are 25% less. An average mortgage payment is around $1,247, making it affordable for retirees who want a destination focused on a strong southern climate with a downtown area that always offers something to do.

One of the better, smaller towns, Charleston, South Carolina, is a charming and historic destination. Outstanding medical centers, no taxes on Social Security benefits, and low property taxes highlight the benefits of living in this area as a retiree. The cost of living is about average compared to national numbers, but the bang for your buck that you get on property makes it worthwhile.

Decatur, Alabama, might not be top of mind as a retirement destination, but its significantly lower cost of living and multiple hospitals nearby for healthcare make it a strong choice for relocation. Not only do you have prominent health facilities, but Alabama offers seniors no taxes on Social Security and pension income, and those 65 and over are exempt from state property taxes.

Fort Wayne, Indiana, should be a top choice for retirees because its cost of living is lower than the national average, and housing is 25% cheaper. Hospitals are plentiful, and seniors do not need to file an Indiana income tax return if they are Indiana residents.