5 low-cost cities where retirees trade big‑city prices for great weather

Story by Martin Dasko

August 20, 2026

If you're looking for a sustainable retirement, reducing your housing costs is the single biggest move you can make to extend your retirement savings.

According to the most recent data released by the U.S. Bureau of Labor Statistics, American families over the age of 65 spent an average of $61,432 on expenses in 2024. The largest expense was housing, which accounted for 36% of all expenses, or $1,849.42 per month. With the cost of living increasing, it’s important to find ways to cut back on housing costs to stretch your retirement income further.

The following are five cities where retirees can retreat to for better weather and overall lower costs of living. We compiled the key metrics, along with what seniors can look forward to in these locations,

Huntsville, Alabama

Average cost of living: $4,140

Average home price: $259,100

Average monthly rent: $1,110

“Alabama exempts the entirety of Social Security income from state taxes and features some of the lowest property tax rates found anywhere,” said Keith Lucas, a real estate broker and founder of Retirement Life USA.

He added that Huntsville has a subtropical climate with an average annual temperature of 62, mild winter highs in the low-to-mid 50s, humid summers around 91 degrees and nearly 200 sunny days per year. Retirees may look forward to filling their days at Lowe Mill ARTS & Entertainment, a huge historic textile mill that was transformed into 152 working artist studios where you can take pottery classes, browse craft markets and catch sunset acoustic concerts at Burritt on the Mountain.

Hickory, North Carolina

Average cost of living: $4,080

Average home price: $255,500

Average monthly rent: $870

Hickory is just 60 minutes northwest of Charlotte, which means you’re close to a healthcare hub with major transportation access. Lucas said that Hickory offers four seasons, with balmy mid-50s winters and proximity to various recreational opportunities and waterways.

“The winter highs are right around 50 to 54 degrees and warm, muggy summer days hover around 85 degrees, which means retirees can look forward to strolling the Riverwalk on Lake Hickory,” he said.

Greenville, South Carolina

Average cost of living: $5,730

Average home price: $338,100

Average monthly rent: $1,170

“As a financial advisor in the Carolinas, often our clients tell us that the reasons that they moved to the Carolinas for retirement include state tax benefits and lower cost of living while having access to good weather, excellent golf courses, outdoor recreation, beaches and mountains,” said Christina Mehltretter, a CPA and the COO at Carolinas Financial and Retirement Planning. She said that the weather in the Carolinas typically reaches highs in the 50s in the winter and highs in the 90s in the summer.

Lucas said that retirees look forward to Senior Action[1] , a 30,000-square-foot community center offering monthly workshops in fine arts, pottery and low-impact movement, as well as easy strolls along the Swamp Rabbit Trail.

New Braunfels, Texas

Average cost of living: $6,030

Average home price: $377,900

Average monthly rent: $1,390

“The town has no state income tax and median home prices fall in the $352,000 range, while warm winters average a sunny 63 and top medical universities and global gateways are just a 35-minute drive away,” said Lucas.

He said that residents get 225 sunny days a year with year-round warmth, with mild winter highs of 63 in January and hot, humid summer days reaching 96, with winter overnight lows rarely dropping below the low 40s.

Retirees enjoy mornings at Landa Park walking shaded paths, taking a dip in the spring-fed pool or grabbing an early-evening seat for live acoustic sets at Gruene Hall.

Ocala, Florida

Average cost of living: $4,440

Average home price: $278,500

Average monthly rent: $1,150

Lucas said that Ocala enjoys over 230 sunny days per year with winter daytime highs averaging 71 to 74 degrees and summer highs topping out in the lower 90s daily. Retirees like spending time at the World Equestrian Center, which is a world-class, climate-controlled complex open to the public for horse shows, outdoor festivals and casual dining.

He found that seniors appreciate the access to the University of Florida Health in nearby Gainesville. For active retirees, the community offers well-appointed 50-plus communities with considerably cheaper HOA dues than its coastal counterparts. It also has no state income tax.

Editor's note: Cost-of-living figures via BestPlaces.net.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.