10 Cost-Effective Retirement Towns In The United States
Retirement planning can feel daunting, especially when it comes to the topic of finances. In a 2024 report by the National Institute on Retirement Security (NIRS), a survey found that 55% of Americans are worried they won’t achieve financial security in retirement. So, if you have these concerns, you are not alone. Accordingly, it may help to consider relocating to a more affordable small town to live out your golden years free of financial stress.
These 10 cost-effective retirement towns in the United States offer a sense of security for seniors. All these towns stand out for having home prices below national and state medians, and some additionally benefit from a lack of state income tax. More importantly, the affordability of these towns does not mean they lack in quality. Boasting beautiful beaches, stunning state parks, cozy downtowns, and welcoming communities, these US towns offer a high quality of life by being senior-friendly and kind to your wallet.
Clarksburg, West Virginia
In a 2025 study, GOBankingRates named West Virginia the “most affordable state for a comfortable retirement,” making Clarksburg the perfect town for budget-conscious retirees. Clarksburg’s median home listing price is well below national and West Virginia averages, at just $159,000 in October 2025, allowing its residents to put more time and money toward leisure.
An Appalachian town, Clarksburg’s humid subtropical climate means summers here are warm and winters are mild. As a result, its picturesque parks and trails can be enjoyed year-round. Whether strolling overlook trails atop Lowndes Hill Park or hiking West Fork River paths like the Veteran's Fitness Trail, beauty and physical activity go hand in hand in Clarksburg. As for days when you want to sit back and relax, the Clarksburg Amphitheater and Robinson Grand Performing Arts Center both put on exciting shows throughout the year.
Mankato, Minnesota
Much like Clarksburg, Mankato is a laid-back river town renowned for its waterfront parks and affordability. At the confluence of the Blue Earth and Minnesota Rivers, this Minnesota community is brimming with scenic spaces like Riverfront Park. Waterfall watching, riverside hiking, and bison viewing can also be enjoyed nearby at Minneopa State Park, Mankato’s crown jewel. Whether driving through its 325-acre bison range or hiking the short half-mile Minneopa Falls Trail, there is never a dull moment in this Mankato attraction.
In terms of affordability, Mankato’s housing remains below both national and state medians in 2025. In October 2025, Manakto's median home sold price was just $305,000, about $40,000 below the state median. Plus, with hospitals like the Mayo Clinic Health System right in town, seniors with healthcare priorities can save on travel expenses.
Muskegon, Michigan
For lake life and beach bliss without the hefty price tag, Muskegon boasts the best of both worlds. Situated on Lake Michigan, the town stands out for its breathtaking and accessible shores. In 2019, National Geographic named Muskegon State Park one of the “Most Wheelchair-Friendly Beaches In the US,” celebrating its free-to-rent Action TrackChairs. These all-terrain wheelchairs allow users to access the park’s beaches with ease, while the fishing pier, observation platform, and harbor picnic area are also mobility aid-accessible. Meanwhile, visiting grandkids will have a blast at Muskegon Luge Adventure Park, which offers year-round thrills, including rock-climbing, archery, luging, and skiing.
Although lake life can cost a pretty penny, Muskegon remains extremely affordable by comparison. In October 2025, Michigan homes saw a median sale price of $270,000, about $100,000 below the national median. Better yet, homes in Muskegon cost even less, with a median sale price of $228,000.
Pottsville, Pennsylvania
If taxes are one of your retirement concerns, consider Pottsville, Pennsylvania, a small town with a big heart and even bigger savings. Life in the Keystone State is great for retirees on a budget, as PA doesn’t tax Social Security or retirement income, and it has the lowest flat tax rate in the nation. Moreover, at $292,000, Pennsylvania’s median home sale is well below the national median in October 2025. Notably, Pottsville’s prices were even lower at $147,000.
With such epic savings on taxes and housing, daily life in Pottsville is all about embracing the simple yet delightful pleasures of a small town. Mornings can be spent at cozy cafes like Pressed Coffee and Books, while date night spots are in high supply, from Pilger Ruh Brewing to Riviera Maya Restaurant. For active and nature-loving retirees, Pottsville’s portion of the Schuylkill River Trail is the perfect addition to any day, offering fresh air and scenic scenes.
Freeport, Texas
Lacking an individual income tax, Texas is another popular state for retirees, especially in affordable coastal towns like Freeport. In October 2025, the town boasts a median home listing price of $355,000 but a median sold price of $198,200, meaning there are deals to be had for retirees.
Anchored by its waterfront, Freeport is a paradise for retirees who love the beach. Shores like Surfside Beach and Bryan Beach give the town a permanent vacation feel, punctuated by the Gulf of Mexico. For days when you need a break from the sand, attractions like the Freeport Golf Course and Freeport Municipal Park offer a charming change of pace, paired with that warm southern hospitality we all know and love.
Inverness, Florida
While some seniors write off life in Florida due to the high cost of coastal homes, the Sunshine State is also teeming with affordable inland towns like Inverness. Coupled with Florida’s lack of personal income tax, life in Inverness is actually very reasonable. While the state’s median home sale price was on par with the national median at $373,000 in October 2025, Inverness’ was considerably lower at $234,000.
Living up to its motto “Small Town Done Right,” Inverness lacks the state’s infamous tourist crowds, instead offering a more close-knit feel. Courthouse Square is its charming and walkable town center, lined with cozy restaurants and shops like the SideBar Tavern and Twisted Moon Boutique. Nearby, Cooter Pond Park is the perfect place to picnic, fish, and stroll the boardwalk, which also connects to Florida’s famous Withlacoochee Trail. For fun on the coast, Inverness is also under an hour from Fort Island Gulf Beach, meaning ocean views are just a drive away.
Berlin, New Hampshire
Hugging the Androscoggin River in northern New Hampshire, Berlin is proof that life in New England can be more affordable than you think. On the positive side, New Hampshire lacks a state income tax, meaning your benefits, pension, and Social Security are exempt. However, housing in the Granite State can be on the higher end. Luckily, towns like Berlin remain much more affordable. As of October 2025, homes here are listed at a median of $213,800 and sold even lower at a median price of $179,900.
Situated in the White Mountains and Androscoggin River Valley, Berlin is the perfect town for retirees looking to enjoy a slice of New Hampshire’s great outdoors. Locally, Berlin boasts countless riverfront parks like the Laura Lee Viger Botanical Garden and Service Credit Union Heritage Park. The town is also a gateway to nearby Jericho Mountain State Park, home to serene waterfront hiking paths like the Jericho Lake Loop.
Waterville, Maine
Waterville, another charming New England river town, is also an underrated and affordable place to retire. Much like New Hampshire, homes in Maine cost more than the national median, making some seniors wary of retiring here. In October 2025, the state’s homes sold at a median of $407,000 and listed at a median of $437,000. Much more affordable by comparison, Waterville’s homes sold at a median of $247,000 and listed at $269,500.
Similar to Berlin, much of Waterville’s beauty is tied to its waterfront, with countless parks to explore along the Kennebec River. From Head of Falls Park to the North Street Recreation Area, scenic walking paths are a great way to stay active here. Back in town, Waterville is also a hub of art and culture, perfect for those days when the weather keeps you indoors. Whether browsing exhibits at the Colby College Museum of Art or catching a show at the Waterville Opera House, boredom has no place in Waterville.
Vermillion, South Dakota
South Dakota’s lack of income tax makes cost-effective towns like Vermillion that much more retirement-friendly in 2025. In general, South Dakota is already an affordable state in which to buy a home, with its houses listing below the national median at $360,000 in October 2025. But with Vermillion’s homes listing at a median of $305,000 that same month, the town’s affordability sets it apart from the crowd.
Although Vermillion is largely considered a rural town, it is also home to the University of South Dakota, resulting in a nice mix of atmospheres. Its blufftop setting near the Missouri River grants access to outdoor spaces like Clay County Park, The Bluffs Golf Course, and Spirit Mound State Historic Prairie. In addition, Vermillion offers a great range of community activities and restaurants to serve students and locals alike, from football games at the DakotaDome to dinners at culinary hotspots like Cee Cee's 605 Scratch Kitchen & Bar.
Fort Dodge, Iowa
Similar to South Dakota, Iowa boasts a significantly lower cost of living than the national average, making towns like Fort Dodge ideal for fixed-income retirees. Housing is a primary driver of this affordability, with homes in Fort Dodge remaining below both national and state medians. In October 2025, Iowa’s homes sold at a median of $232,000, while they listed at a median of $250,000. In contrast, Fort Dodge homes in October saw a median listing price of $159,900 and a selling price of $200,000.
Bordering both sides of the Des Moines River, this town offers a strong sense of community and natural attractions. Students and seniors alike come together for shows at the local Oleson Park Music Pavilion and exhibits at the Blanden Memorial Art Museum. Locals of all ages can also embrace the bliss of outdoor spaces like Loomis Park, a beautiful and relaxing green space with tree-shaded paths and river trails.
Embrace An Affordable Retirement In These 10 US Towns
While the NIRS found that 55% of Americans worry they won’t achieve financial security in retirement, these 10 cost-effective towns will help you free yourself from those concerns. Whether moving to Freeport for its lack of income taxes or Muskegon for affordable lake life, each of these towns offers affordability in its own way. Better yet, each provides breathtaking natural surroundings and a high quality of life, proving that a cost-effective retirement does not have to mean sacrificing your happiness.
