9 Welcoming Towns to Retire in Delaware

Delaware has long been a favorite with retirees for its tax climate: it has no state or local sales tax, and Social Security benefits aren’t taxed, either, which helps many retirees stretch their budgets. Property taxes are also comparatively low in much of the state, a welcome perk for anyone living on a fixed income. As you read about the towns ahead—think coastal Lewes and laid-back Bethany Beach—you’ll discover that beyond being wallet-friendly, these communities can feel genuinely welcoming, making the transition into retirement comfortable and inviting.

Lewes

The coastal town of Lewes stands out as one of the state's top spots for retirees. Lewes is small—about 3,500 residents—and skews older, with a median age around 67. Situated along the scenic Delaware Bay, Lewes offers several advantages for retirees.

Outdoor enthusiasts will love Cape Henlopen State Park, where they can enjoy swimming beaches, an 18-hole disc golf course, basketball courts, walking trails, and a cozy campground. If you're looking for a scenic and relaxing journey, you might consider taking the Cape May-Lewes Ferry, which welcomes bicycles, vehicles, and foot passengers alike, offering a leisurely ride from Lewes to Cape May, New Jersey.

Living in Lewes can be pricier than many inland communities. Zillow’s Home Value Index puts typical home values in Lewes at roughly $582,000, while Zillow’s rental data shows average rents around $2,400. Despite those costs, many retirees feel it’s worth it for the coastal setting, outdoor access, and Delaware’s tax-friendly reputation.

Bethany Beach

With a population of about 900, Bethany Beach captures the charm of a small, welcoming town. The community tends to be older, with a median age around 66—part of what makes it a favorite spot for retirees. Originally founded by members of the Disciples of Christ as a peaceful seasonal retreat, Bethany Beach has grown more lively over the years but still retains its tranquil beauty, with the Atlantic shoreline offering stunning views and simple access to Delaware’s nearby Inland Bays. Home prices are generally on the higher side, with Zillow’s Home Value Index indicating typical homes around $826,000, and average rents about $3,400. Strolling along Bethany Beach's friendly, family-oriented boardwalk is a delightful way to enjoy a day, but some might find even more fun exploring the Bethany Beach Nature Center. This cozy spot offers engaging, hands-on exhibits and programs where you can learn about the local wetlands, wildlife, and coastal conservation efforts. Whether you're relaxing on the sand, soaking up the sunshine, splashing in the surf, or simply curious to discover new things, Bethany Beach offers a wonderful variety of experiences to keep you happily entertained.

Milford

Milford is home to about 11,800 people and offers a more mixed age profile than Delaware’s coastal retirement hubs (its median age is around 42). One of Milford’s biggest draws is relative value: Zillow’s Home Value Index puts typical home values around $337,000, and Zillow’s rental data shows average rents around $2,050.

Milford is a charming historic town beautifully situated along the Mispillion River, proudly spanning both Sussex and Kent Counties in Delaware. When it was founded in 1807, Milford was known for river-based commerce and industry, including ship-related trades. These days, its lively downtown area welcomes visitors with an array of art galleries, cozy restaurants, unique shops, boutiques, and a community theatre, making it a wonderful place to explore and enjoy.

Abbott's Mill Nature Center in Milford, managed by the Delaware Nature Society, welcomes visitors with its preserved mill, educational programs, and scenic nature trails. Milford residents also cherish the Mispillion Riverwalk—a series of pathways perfect for walking, running, and biking—an easy way to stay active without leaving town.

Hockessin

Hockessin is home to about 12,900 people and sits in northern New Castle County, close to Wilmington and the college town of Newark—yet it retains a distinct, small-community feel. Its median age is around 46, which reflects a blend of long-time residents, families, and older adults.

Hockessin has deep roots, including early settlement by Quakers in the late 1600s. The area takes pride in preserving its past, including attractions like the Marshall Steam Museum at Auburn Heights Preserve, known for an exceptional collection of Stanley steam cars and other vintage vehicles.

For outdoor enthusiasts, Hockessin offers a wonderful array of options. Ashland Nature Center spans 130 acres of lush landscapes, featuring scenic hiking trails, environmental education programs, and plenty of spots to observe local wildlife. Meanwhile, Mount Cuba Center is a botanical garden dedicated to native plants, offering educational opportunities focused on the region’s flora and habitats.

Housing costs here are typically higher than in many parts of the state. Zillow’s Home Value Index puts typical home values around $587,000, while Zillow’s rental data shows average rents around $2,900.

Middletown

Middletown, a rapidly growing community in New Castle County, is home to around 26,800 residents. While it isn’t as centered on retirees as Delaware’s beach towns—its median age is roughly 39—it still has a lot to offer retirees seeking newer housing, convenient errands, and quick access to larger medical facilities and shopping areas.

The housing scene in Middletown reflects this growth beautifully. According to Zillow’s Home Value Index, typical home values are about $521,000, and rental prices average around $2,700. One of the best parts? Plenty of options! You’ll find new townhomes, active-adult communities, and fresh neighborhoods continuously adding to the local variety.

There’s also a delightful mix of outdoor activities for all to enjoy, like strolling and birding at Silver Lake Park and Levels Road Park. For those who love the arts, the historic Everett Theatre downtown is a real treat. Plus, the local restaurants, shops, seasonal festivals, and farmers' markets make sure there’s always something fun to look forward to.

Georgetown

The county seat of Sussex County, Georgetown offers a central location for exploring southern Delaware—and for retirees, that can mean an easy day trip to beaches, parks, and small towns without paying beach-town housing prices. Georgetown has about 7,600 residents and a relatively young median age (around 34), but it still offers a comfortable small-town rhythm.

Housing can be one of Georgetown’s practical advantages. Zillow’s Home Value Index puts typical home values around $347,000, and Zillow’s rental data shows average rents around $1,700.

Founded in 1791, Georgetown is centered around The Circle, a historic downtown hub with green space and an easy stroll-around layout. The Marvel Carriage Museum complex is also located here, featuring collections that include carriages and other transportation-related exhibits, plus historic structures you can explore.

Plus, Georgetown's proximity to coastal Delaware means retirees can enjoy a quieter home base while still keeping the ocean within reach for day trips and weekend visits.

Selbyville

Located close to the Maryland border and the scenic beach corridor, Selbyville is a charming small town with around 2,900 residents, and a median age of about 48. It offers a lovely “close, but not too close” spot for retirees who crave quick access to the coast but prefer to avoid the busy seasonal crowds. Being just a short drive from beautiful beach towns like Ocean City, Maryland, is a big perk, and residents can easily reach major medical centers such as Beebe Healthcare in Lewes and TidalHealth in Berlin, Maryland. Thanks to its rich history rooted in agriculture and poultry, Selbyville maintains a warm, small-town vibe featuring local shops, cozy restaurants, and lively community events. Seasonal markets and farm stands nearby add even more charm to everyday life.

While housing costs in the broader coastal area have risen, Zillow’s Home Value Index estimates typical home values in Selbyville at around $523,000, with average rents near $2,100. This makes Selbyville a friendly and inviting place to consider for those seeking a peaceful yet conveniently connected lifestyle.

New Castle

New Castle was founded by the Dutch in 1651 as Fort Casimir and later served as Delaware’s colonial capital in the early 1700s. Today, New Castle is home to about 5,700 people and offers a picturesque, history-forward setting that many retirees find charming—especially if you like walkable neighborhoods and a strong sense of place.

New Castle’s historic district is designated a National Historic Landmark, and its cobblestone streets and preserved architecture make it a rewarding place to explore. The New Castle Court House Museum is an attraction that should not be missed, and the Dutch House Museum and Gardens—dating to the late 1600s—is another popular stop for history lovers.

Located along the Delaware River, New Castle also offers plenty of fresh-air options. Battery Park is a favorite for walking, bird-watching, and waterfront views. The New Castle Farmers Market is another local staple, mixing indoor and outdoor spaces with baked goods, meats, produce, and more.

For many retirees, New Castle also balances charm with relative affordability. Zillow’s Home Value Index puts typical home values around $274,000, while Zillow’s rental data shows average rents around $1,666.

Wyoming

Wyoming, Delaware, is a small town in Kent County a short drive from Dover. With roughly 1,800 residents and a median age around 43, it offers a quieter pace that can appeal to retirees who want easy access to a larger hub without living directly in it.

Wyoming can also be a practical value play. Zillow’s Home Value Index puts typical home values around $297,000, and Zillow’s rental data shows average rents around $1,700. Founded in the mid-1800s as a railroad town, Wyoming grew alongside regional agriculture and rail commerce and was named for Wyoming Valley in Pennsylvania.

Today, the town’s small downtown and nearby parks make it easy to keep life simple: strolls, picnics, and local events. Don’t miss a visit to Fifer Orchards, a family-owned farm known for seasonal produce and community-friendly happenings. With Dover only a few miles away, Wyoming offers a calm home base with quick access to restaurants, healthcare, and bigger-city conveniences.

These towns in Delaware can be welcoming places to retire, each with its own mix of affordability, amenities, and atmosphere. When you are researching where to spend your retirement years, weigh housing costs and taxes alongside practical details like healthcare access, walkability, and the kind of day-to-day pace you want. Whether you choose the beach towns of Bethany Beach or Lewes or the historic streets of New Castle, Delaware can be a positive step toward a comfortable and well-rounded retirement lifestyle.