Sun Belt states like Florida have for decades been the preferred retirement destinations for many seniors, but high living expenses in recent years are forcing many retirees to look elsewhere.
An analysis by Seniorly, a San Francisco-based online marketplace for families looking for senior living solutions, placed the Sunshine State as No. 15 on its list of worst places to retire on a budget. The analysis shows that while Florida leads in growth in median home value, median monthly rent in the state ties New York for fifth at $2,500.
Seniorly analyzed recent data across 10 metrics in all 50 states and Washington, D.C. about areas such as inflation, taxes, cost of everyday items, housing, Medicare and Social Security payments.
Seniorly tapped into data from the U.S. Census Bureau, Bureau of Economic Analysis, Social Security Administration, Centers for Medicare & Medicaid and Medicaid Services, Energy Information Administration, American Automobile Association, U.S. Senate, Zillow and Kiplinger.
Here is Seniorly’s list of the 10 best states to retire for those on a budget:
10. Utah
Utah has the second-highest homeownership rate for seniors 65 and older. It, however, has a high rental expense, ranking No. 31 with a median cost of $1,838. But other expenses are some of the lowest compared to other states.
Median rent: $1,838 (No. 31)
Annual growth in median home value: 18.4% (No.6)
Average grocery bill: $279 per month (No. 15)
Average electric bill: $85 per month (No.1)
Average gas prices: $2.82 per gallon (No. 10)
Average Social Security payment: $599 per month (No. 32)
Medicare hospital spending per beneficiary, relative to the national average: 0.93 (No. 9)
9. Pennsylvania
Pennsylvania has the highest monthly Social Security payment at $1,201 and it also ranks as one of the most tax-friendly for retirees.
The homeownership rate for those aged 65 and older: 77.9% (No. 38)
Median rent: $1,500 (No. 19)
Annual growth in median home value: 10.4% (No. 39)
Average grocery bill: $292 per month (No. 25)
Average electric bill: $136 per month (No. 30)
Average gas prices: $3.45 per gallon (No. 45)
Average Social Security payment: $1,201 (No. 1)
Medicare hospital spending per beneficiary, relative to the national average: 0.98 (No. 23)
8. Wyoming
Wyoming has the lowest gas prices at $2.70 per gallon. It also has a high homeownership rate for adults 65 and over and low median rent.
The homeownership rate for those aged 65 and older: 84.1% (No. 4)
Median rent: $1,126 (No. 4)
Annual growth in median home value: 9.7% (No. 43)
Average grocery bill: $324 per month (No. 42)
Average electric bill: $99 per month (No. 5)
Average gas prices: $2.70 per gallon (No. 1)
Average Social Security payment: $582 (No. 46)
Medicare hospital spending per beneficiary, relative to the national average: 0.96 (No. 16)
7. Michigan
Michigan also has a high homeownership rate for adults 65 and older and low median rent. The state’s retirees also collect a fairly high monthly Social Security payment. The homeownership rate for those aged 65 and older: 82.8% (No. 10)
Median rent: $1,340 (No. 13)
Annual growth in median home value: 12.7% (No. 23)
Average grocery bill: $290 (No. 22)
Average electric bill: $116 (No.16)
Average gas prices: $3.26 (No. 41)
Average Social Security payment: $744 per month (No.8)
Medicare hospital spending per beneficiary, relative to the national average: 0.95 (No.14)
6. Idaho
Grocery and electric bills and gas prices are lower in Idaho. The state also has one of the highest homeownership rates for those aged 65 and older. The homeownership rate for those aged 65 and older: 83.9% (No. 5)
Median rent: $1,736 (No. 23)
Annual growth in median home value: 17.1% (No. 9)
Average grocery bill: $269 per month (No. 10)
Average electric bill: $104 (No. 7)
Average gas prices: $2.92 per gallon (No. 18)
Average Social Security payment: $598 (No. 34)
Medicare hospital spending per beneficiary, relative to the national average: 0.96 (No. 16)
5. South Dakota
South Dakota has some of the lowest living expenses. Rent, grocery bills, Medicare hospital expenses and gas prices are below many states. The homeownership rate for those aged 65 and older: $77.9% (No. 38)
Median rent: $1,143 (No. 5)
Annual growth in median home value: 11.4% (No. 32)
Average grocery bill: $250 per month (No. 5)
Average electric bill: $128 per month (No. 22)
Average as prices: $2.81 per gallon (No. 6)
Average Social Security payment: $578 (No. 48)
Medicare hospital spending per beneficiary, relative to the national average: 0.93 (No. 9)
4. Oklahoma
Oklahoma has the lowest grocery cost and the second lowest gas prices of any other state. The homeownership rate for those aged 65 and older: 81.3% (No. 20)
Median rent: $1,382 (No. 16)
Annual growth in median home value: 13.8% (No. 16)
Average grocery bill: $226 (No.1)
Average electric bill: $144 per month (No. 38)
Average gas prices: $2.72 per gallon (No. 2)
Average Social Security payment: $606 (No. 25)
Medicare hospital spending per beneficiary, relative to the national average: 0.99 (No. 28)
3. Tennessee
The state has a high homeownership rate for seniors 65 and older. It also ranked second for the most growth in home values from 2021 to 2022. The homeownership rate for those aged 65 and older: 82.1% (No. 15)
Annual growth in median home value: 21.1% (No. 2)
Median rent: $1,749 (No. 25)
Average grocery bill: $245 per month (No. 3)
Average electric bill: $145 per month (No. 39)
Average gas prices: $2.86 per gallon (No. 13)
Average Social Security payment: $599 (No. 32)
Medicare hospital spending per beneficiary, relative to the national average: 1.01 (No. 37)
2. New Mexico
New Mexico locked in the No. 2 spot due to features such as the second-lowest electricity costs of all states and the third-lowest Medicare hospital spending when compared to the national average. The homeownership rate for those aged 65 and older: 82.5% (No. 11)
Median rent: $1,617 (No. 21)
Annual growth in median home value13.6% (No. 17)
Average grocery bill: $271 monthly (No. 11)
Average electric bill: $91 monthly (No. 2)
Average gas prices: $2.83 per gallon (No. 11)
Average Social Security payment: $580 per month (No. 47)
Medicare hospital spending per beneficiary, relative to the national average: 0.91 (No. 3)
1. Iowa
Iowa is one of the most tax-friendly states for retirees. The state’s living expenses, notably its No. 3 ranking for median rent, received high marks all around. It also ranks fifth in Social Security payments. The homeownership rate for those aged 65 and older: 81.6% (No. 19)
Median Rent: $1,100 (No. 3)
Annual growth in median home value: 11.6% (No. 28)
Average grocery bill: $281 per month (No. 18)
Average electric bill: $117 per month (No. 17)
Average gas prices: $2.91 per gallon (No. 17)
Average Social Security payment: $834 (No. 5)
Medicare hospital spending per beneficiary, relative to the national average: 0.96 (No. 16)
The full report can be viewed here.
