Retirees have long flocked to certain states for sunshine, low taxes, and a slower pace. But housing, insurance, and everyday costs have jumped enough to make some of those destinations tough on fixed incomes. Recent rankings from Bankrate show that several perennial favorites now struggle on affordability, even if their weather and amenities still shine.
Arizona
Arizona used to be the “affordable sun” alternative, but median home prices in Phoenix and other hot spots surged over the last decade. Utilities run high in extreme heat, and water fees can add up for homeowners.
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Popular 55+ communities are in demand, lifting HOA dues and resale prices. Property taxes remain manageable for many, yet the total monthly nut often surprises newcomers. The upshot: Arizona still offers sunshine, but not the bargain many remember.
Texas
No state income tax helped Texas build a retirement reputation, yet property taxes and insurance can erase those savings fast. Metro areas like Austin, Dallas, and Houston saw sharp housing gains, and maintenance/utility costs have followed.
New buyers also face steep premiums for cars and homes in certain ZIP codes. For retirees on fixed incomes, that combination can be tough to balance. Even though it’s popular, Bankrate ranks Texas poorly on overall retiree friendliness in 2025.
North Carolina
The mountains and coast make North Carolina a long-time favorite, but demand has pushed prices up in Asheville, Raleigh-Durham, and coastal towns. Insurance and taxes vary widely by county, and HOA fees in resort-style communities add to monthly costs.
Medical access is solid but not always cheap, especially near tourism centers. Many newcomers arrive expecting “cheap South” prices and meet a very different reality. It’s still lovely—just pricier than it used to be.
Florida
Florida’s no-income-tax draw is real, but rising home prices and especially home insurance premiums are straining budgets. Storm risk has pushed premiums higher and made coverage harder to secure for many homeowners.
HOA assessments and special repairs after severe weather add another unpredictable cost. Retirees who expected low carrying costs are finding the opposite when they request quotes. Insurance pressures in higher-risk areas are a big reason affordability has slipped.
South Carolina
Southern charm and beach towns draw retirees, yet housing costs in Charleston, Mount Pleasant, and Hilton Head now stretch budgets. Flood and wind coverage can raise insurance bills substantially near the coast.
HOA dues in planned communities add a second housing payment many didn’t plan for. Inland areas help, but they often lack the amenities people moved for. The coastal dream remains—just with a higher price tag.
Nevada
No income tax is attractive, but Las Vegas and Reno home prices climbed quickly, and rents followed suit. Water and power bills matter more than newcomers expect in the desert, especially during heat waves.
Car insurance rates and HOA dues in newer subdivisions can stack on top of housing costs. Medical care is accessible but can be costly out-of-network. Nevada still works for some budgets, just not as many as before.
Colorado
Great weather and outdoor access make Colorado magnetic, but Denver, Boulder, and the Front Range are pricey. Housing and property taxes combine with higher-than-average insurance in wildfire-exposed areas.
Utilities aren’t low, and winter maintenance adds a seasonal cost. Resort towns amplify all of that with premium pricing. Colorado remains a lifestyle win—if your savings can comfortably support it.
California
California’s coastal climate is unmatched, but affordability is its biggest hurdle. Home prices dwarf national averages, and even downsizing can mean a large mortgage or rent. Insurance and taxes add to the load, and healthcare expenses often run higher in major metros. Many retirees end up far inland to make the math work. For most fixed-income households, the numbers just don’t pencil out.
Oregon
Oregon’s natural beauty and easy access to the outdoors keep it appealing, yet Portland-area housing and taxes weigh on budgets. Insurance in fire-prone regions has risen, and utilities/food costs outpace many states.
Smaller cities can help, but demand has pushed prices up there, too. The result is a state that feels less “hidden bargain” and more “choose carefully.” Affordability depends heavily on neighborhood and risk profile.
Hawaii
Paradise comes with island pricing: housing, groceries, utilities, and travel costs are all elevated. Many retirees underestimate the ongoing expense of energy and goods shipped over long distances.
Healthcare quality is strong, but out-of-pocket costs can stack up. HOA fees and special assessments are common in condo buildings exposed to salt air and storms. Hawaii is still a dream—just one that requires substantial, reliable income.
Consider Alternative Locations
If costs in your target state feel punishing, look at lower-risk regions where home insurance is more available and less volatile—a trend confirmed by the U.S. Department of the Treasury in its recent homeowners-insurance report. Consider tax-friendly but lower-priced alternatives in the Midwest or Mid-Atlantic, or choose smaller cities within expensive states.
Downsizing, selecting a townhouse or condo with modest dues, and prioritizing medical networks you’ll actually use can all bring the budget back in range. Above all, run the full monthly number (mortgage or rent, taxes, insurance, HOA, utilities, healthcare) before you move—weather is free, but the carrying costs aren’t.
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The article 10 Popular Retirement States That Aren’t Affordable Now first appeared on Cents + Purpose.