- GoBankingRates’ new data shows that many cities in Arizona, California, and Florida are getting too expensive for retirees due to high costs of homes, living expenses, and senior care.
- Cities in California took the top three spots, including Ranchos Palos Verdes, Walnut Creek, and Lincoln, California.
- Other cities on the list include popular retiree city Englewood, Florida, and Sarasota, Florida. Palm Springs, California also made the list.
- Visit Business Insider’s homepage for more stories.
For soon-to-be retirees planning to move to Florida, California, or Arizona, start saving more, because it might be more expensive than anticipated.
New data from GoBankingRates shows just how expensive some cities in these states are getting for retirees living on a fixed income. Of the top 21 cities on the list, all but one city were in these three states.
The data looked at 50 cities with a quarter or more of residents over age 65. To rank them, GoBankingRates looked at the average of the median home cost from Zillow between July 2018 and July 2019, as well as the year-over-year change. Other factors included the total cost of living expenses for someone 65 or older from the Bureau of Labor Statistics, and the cost of home healthcare and senior living facilities.
The rankings show that many of the cities that are becoming the most out of reach for seniors are smaller cities and towns in Florida, California, and Arizona. The top three cities that are becoming the most unaffordable for retirees are Ranchos Palos Verdes, California; Walnut Creek, California; and Lincoln, California.
Here are the top 21 cities where rising expenses will require a larger retirement fund:
21. Sarasota, Florida
Sarasota, Florida might offer some picturesque beaches on the Gulf of Mexico, but many older residents will find that the costs of living there doesn't make retiring there affordable.
Annual cost of living: $54,593
Average median list price for a home: $351,785
Cost of a home health aide annually: $46,904
20. Sebastian, Florida
Just south of Melbourne, Florida on the Atlantic side, Sebastian, Florida isn't all that affordable for retirees either.
Annual cost of living: $52,988
Average median list price for a home: $232,344
Cost of a home health aide annually: $46,904
19. Palm Desert, California
Palm Desert, California is far from an oasis for retirees. Though it has a large population of seniors, high expenses will make living out of your savings difficult.
Annual cost of living: $67,489
Average median list price for a home: $398,190
Cost of a home health aide annually: $59,488
18. Prescott, Arizona
For outdoorsy retirees, Prescott, Arizona might seem ideal. But, with high home prices and high costs of living, it might not be so perfect for retirees on a budget.
Annual cost of living: $63,726
Average median list price for a home: $445,276
Cost of a home health aide annually: $53,169
17. Palm Harbor, Florida
North of Clearwater, Florida, Palm Harbor has become rather expensive for retirees.
Annual cost of living: $58,708
Average median list price for a home: $304,065
Cost of a home health aide annually: $46,904
16. Fountain Hills, Arizona
Fountain Hills, Arizona has a large population of residents over age 65, but it's not all that affordable with expensive home prices.
Annual cost of living: $69,998
Average median list price for a home: $490,776
Cost of a home health aide annually: $52,052
15. Lake Havasu City, Arizona
On Arizona's border with California and the Colorado River, this lake town isn't all that affordable for retirees.
Annual cost of living: $53,088
Average median list price for a home: $328,625
Cost of a home health aide annually: $53,196
14. Palm Coast, Florida
Between St. Augustine and Daytona Beach, Florida is Palm Coast, which is an increasingly expensive city for those on a fixed income.
Annual cost of living: $52,436
Average median list price for a home: $266,311
Cost of a home health aide annually: $46,904
13. Port Charlotte, Florida
North of Ft. Myers, Florida, Port Charlotte is a small coastal community that's growing more expensive for seniors.
Annual cost of living: $46,515
Average median list price for a home: $223,464
Cost of a home health aide annually: $46,904
12. Banning, California
Between Palm Springs and San Bernardino, this small California town has some high costs of living which will especially hurt seniors.
Annual cost of living: $60,665
Average median list price for a home: $277,295
Cost of a home health aide annually: $59,488
11. Dunedin, Florida
Between Clearwater and Palm Harbor, this Gulf Coast city offers close proximity to bright blue water, but can be expensive.
Annual cost of living: $56,600
Average median list price for a home: $288,930
Cost of a home health aide annually: $46,904
10. Largo, Florida
North of St. Petersburg, Largo, Florida is a town in Florida that has close proximity to many beaches on the Gulf of Mexico. However, high costs of living won't make it an ideal place for retirees.
Annual cost of living: $51,638
Average median list price for a home: $231,776
Cost of a home health aide annually: $46,904
9. Apache Junction, Arizona
Just outside of Mesa and Chandler is the small town of Apache Junction, where just about a third of the residents are over age 65.
Annual cost of living: $51,633
Average median list price for a home: $217,250
Cost of a home health aide annually: $53,196
8. Palm Springs, California
Palm Springs, California might make for a picturesque place to retire, but the average home will cost about half a million dollars, making it slightly out of the budget for retirees.
Annual cost of living: $72,607
Average median list price for a home: $478,334
Cost of a home health aide annually: $59,488
7. Pahrump, Nevada
Just outside of California's Death Valley National Park is the small town of Pahrump, Nevada where retirees will find that it's fairly expensive to live.
Annual cost of living: $50,495
Average median list price for a home: $233,334
Cost of a home health aide annually: $51,480
6. Bullhead City, Arizona
On the Colorado River, this small Arizona town offers lots of opportunities for water-loving retirees, but that doesn't mean it's affordable.
Annual cost of living: $46,966
Average median list price for a home: $252,807
Cost of a home health aide annually: $53,196
5. Englewood, Florida
Almost half of the residents of Englewood, Florida are seniors, which makes it a great place for socializing, but not so much for affordable living.
Annual cost of living: $53,188
Average median list price for a home: $428,249
Cost of a home health aide annually: $46,904
4. Tamarac, Florida
Outside of Fort Lauderdale, Tamarac is a community with lots of water and other seniors, though it is fairly expensive.
Annual cost of living: $55,396
Average median list price for a home: $198,779
Cost of a home health aide annually: $46,904
3. Lincoln, California
This town near Sacramento, California is growing quickly, but it isn't particularly friendly to retirement budgets.
Annual cost of living: $75,417
Average median list price for a home: $487,501
Cost of a home health aide annually: $59,488
2. Walnut Creek, California
East of the San Francisco Bay, Walnut Creek is fairly expensive, with the median home value over $750,000, and a cost of living over $100,000 each year.
Annual cost of living: $113,151
Average median list price for a home: $756,307
Cost of a home health aide annually: $59,488
1. Rancho Palos Verdes, California
West of Los Angeles, this community overlooking the Pacific Ocean has some expensive homes and high living costs, making it now the most unaffordable place for seniors.
Annual cost of living: $150,584
Average median list price for a home: $1,367,961
Cost of a home health aide annually: $59,488
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