Top 10 Best Places to Retire and Buy a Home in 2027

1. The Villages, Florida

The Villages ranks first because it combines no state income tax with the most complete active-adult lifestyle infrastructure in the U.S., including on-site healthcare, golf courses, and town squares. Homes range from roughly $280,000 for smaller villas to over $700,000 for premium models. Amenity fees run $175–$200 monthly, plus bond assessments adding $100–$200. This ecosystem minimizes the need to leave the community for daily needs.

This is for retirees who prioritize convenience, social programming, and tax savings over independence and climate diversity. It trades away coastal access, and monthly carrying costs can exceed $400 above the mortgage. Compared to Knoxville below, The Villages offers far more built-in amenities but costs significantly more per month for a similar-priced home, making it best for those who value structure over flexibility.

2. Knoxville, Tennessee

Knoxville ranks second because it delivers the best overall value: homes from approximately $300,000, no state income tax, and property taxes near 0.6% of home value, which means a $400,000 home costs about $2,400 annually. The University of Tennessee Medical Center provides strong healthcare access within 20 minutes of most neighborhoods. Monthly HOA fees are typically under $50, and homeowners insurance averages $1,200–$1,800 per year. This combination keeps total monthly housing costs far below most competitors.

This is for retirees who want financial efficiency and real healthcare infrastructure without paying for resort-style amenities. It trades away coastal access and the dense social calendar of The Villages. Compared to the pick above, Knoxville offers a $400,000 home with roughly $200 in monthly non-mortgage costs versus $700 in The Villages, freeing $500 monthly for travel or savings, but requiring self-driven social engagement.

3. Scottsdale, Arizona

Scottsdale ranks third because it offers elite healthcare through Mayo Clinic Arizona, a dry climate that benefits joint and respiratory conditions, and a flat 2.5% state income tax. Entry-level condos and patio homes start near $500,000, with single-family homes often exceeding $700,000. Property taxes average 0.6–0.8% of home value, and homeowners insurance runs $1,000–$1,500 annually. The dry heat reduces humidity-related health issues for many retirees.

This is for affluent retirees who prioritize medical access and arid weather over affordability. It trades away summer comfort, with temperatures exceeding 110°F for weeks, and requires a home budget starting near $500,000. Compared to Knoxville above, Scottsdale costs roughly $100,000–$300,000 more upfront but provides a top-tier medical system and a climate that can reduce pain symptoms, making it worth the premium for those with chronic conditions.

4. Asheville, North Carolina

Asheville ranks fourth because it offers a four-season mountain climate, scenic beauty, and a vibrant cultural scene, with median single-family home prices around $450,000–$500,000. North Carolina exempts Social Security from income tax but levies a flat 4.25% rate on other retirement income, and property taxes average 0.7–0.8%. Mission Hospital provides solid regional healthcare within 15–30 minutes of most areas. The moderate summers and mild winters appeal to retirees seeking seasonal variety.

This is for retirees who value scenery, walkable downtown culture, and temperate weather over tax efficiency and low entry prices. It trades away affordability, as prices have appreciated rapidly, and imposes a 4.25% tax on IRA withdrawals. Compared to Scottsdale above, Asheville offers a lower entry price and cooler summers but lacks a Mayo-level medical system and carries a higher income tax burden, making it better for healthy retirees who prioritize lifestyle over healthcare specialization.

5. Chattanooga, Tennessee

Chattanooga ranks fifth because it offers the lowest entry point among top retirement markets, with homes starting near $300,000, no state income tax, and property taxes around 0.6%. The city provides walkable downtown amenities, riverfront access, and Erlanger Health System for medical care. Homeowners insurance averages $1,200–$1,800 annually, and HOA fees are often under $50 monthly. This makes total monthly housing costs among the lowest of any ranked location.

This is for retirees who want maximum financial runway and outdoor recreation without paying for coastal or resort premiums. It trades away the dense social infrastructure of The Villages and the medical prestige of Scottsdale. Compared to Asheville above, Chattanooga offers homes roughly $150,000 cheaper and zero income tax, but has less dramatic mountain scenery and a smaller arts scene, making it the pragmatic choice for budget-focused retirees who still want urban amenities.

6. Sarasota, Florida

Sarasota ranks sixth because it combines no state income tax with Gulf Coast beach access and a strong cultural scene, including the Ringling Museum and numerous theaters. Homes range from $400,000 for condos to over $700,000 for single-family properties near the water. Property taxes average 0.8–1.0%, but homeowners insurance premiums are a major cost, averaging $3,600–$6,000 annually for a $400,000 home due to hurricane risk. This insurance burden significantly raises monthly carrying costs.

This is for retirees who prioritize coastal living, arts, and warm winters and can absorb higher insurance costs. It trades away financial predictability, as hurricane exposure drives premiums rising faster than inflation. Compared to Chattanooga above, Sarasota offers beach access and a richer cultural calendar but costs $1,200–$3,000 more per year in insurance alone, making it a lifestyle premium that budget-conscious retirees may find hard to justify.

7. Prescott, Arizona

Prescott ranks seventh because it offers a mild four-season climate at 5,400 feet elevation, avoiding the extreme summer heat of Phoenix while retaining Arizona's low 2.5% flat income tax. Homes are more affordable than Scottsdale, with entry-level properties near $400,000–$500,000. Property taxes average 0.6–0.8%, and homeowners insurance runs $1,000–$1,500 annually. The dry air benefits respiratory and joint conditions, and the historic downtown provides walkable amenities.

This is for retirees who want Arizona's tax and climate advantages without triple-digit summers. It trades away access to Mayo Clinic-level healthcare, requiring drives to Phoenix for specialized care, and offers fewer cultural amenities than larger metros. Compared to Sarasota above, Prescott avoids hurricane insurance costs entirely and has cooler summers, but lacks ocean access and has a smaller medical infrastructure, making it better for retirees who prioritize climate comfort and cost stability over coastal recreation.

8. Boise, Idaho

Boise ranks eighth because it offers a growing economy, mountain access, and a mild four-season climate, with Idaho exempting Social Security from income tax. However, the state levies a flat 5.695% rate on other retirement income, which is the highest among ranked locations. Median home prices have risen rapidly to approximately $450,000–$550,000, reflecting strong demand. Property taxes average 0.7–0.8%, and homeowners insurance is moderate at $1,200–$1,800 annually. Saint Alphonsus and St. Luke's provide solid regional healthcare.

This is for retirees who value outdoor recreation, safety, and a growing community and are willing to pay higher income taxes. It trades away tax efficiency, as a $50,000 taxable withdrawal costs $2,848 annually in state tax, the highest on this list.

9. Greenville, South Carolina

Greenville ranks ninth because it offers a walkable downtown, scenic Blue Ridge foothills, and favorable tax treatment: South Carolina exempts Social Security and provides a $30,000 retirement-income deduction for those over 65. Homes range from $350,000–$500,000, with property taxes around 0.7%. Homeowners insurance averages $1,200–$1,800 annually, and HOA fees are often under $50 monthly. The city has grown rapidly, adding healthcare options through Prisma Health and Bon Secours.

This is for retirees who want a vibrant small-city atmosphere with cultural events, dining, and outdoor access without coastal or resort premiums. It trades away the tax simplicity of no-income-tax states, though the deduction softens the blow for moderate incomes.

10. Sun City, Arizona

Sun City ranks tenth because it provides an established active-adult community with homes starting around $300,000–$400,000, significantly cheaper than Scottsdale, and Arizona's low 2.5% flat income tax. Amenity fees range from $150–$250 monthly, covering golf, recreation centers, and pools. Property taxes average 0.6–0.8%, and homeowners insurance runs $1,000–$1,500 annually. The community is well-connected to Phoenix-area healthcare, including Banner Health facilities within 20–30 minutes.

This is for retirees who want an active-adult community with lower entry costs than The Villages and a dry climate. It trades away newer infrastructure, as Sun City was developed in the 1960s, and offers fewer modern amenities than The Villages.

How we ranked these

We measured six factors: median home price, property tax rate, state income tax treatment of retirement income, homeowners insurance costs, HOA/amenity fees, and healthcare access (proximity to major hospitals and specialist availability). Each factor was weighted by its impact on a retiree's total monthly housing cost and long-term financial security, with tax treatment and recurring costs weighted most heavily.

We deliberately ignored subjective lifestyle preferences like climate comfort, cultural amenities, and social atmosphere because these are highly personal and cannot be objectively ranked. We also excluded future appreciation potential, as it is speculative and irrelevant for retirees who plan to stay in their home. The goal was to isolate measurable, verifiable financial and healthcare factors that apply universally.

What to look for

What actually matters is total monthly carrying cost, not purchase price. A $350,000 home in The Villages with $400 in monthly fees and $300 in insurance costs $700 per month in non-mortgage expenses, while a $400,000 home in Knoxville with $50 HOA and $150 insurance costs only $200. Over 20 years, the Knoxville home saves $120,000 despite costing $50,000 more upfront. Always calculate property taxes, insurance, HOA fees, utilities, and maintenance reserves for each candidate.

The mistake most buyers make is fixating on the sticker price and tax rate while ignoring insurance premiums, HOA fees, and healthcare access. A retiree who moves to Florida to save on income tax may pay $3,000 more annually in homeowners insurance, erasing the benefit. Another common error is choosing a scenic mountain town without verifying that specialists for chronic conditions are within 30 minutes. Visit in the worst season, not the best, and rent for six months before buying.

Related questions

What is the best state to retire in for taxes?

Florida and Tennessee have no state income tax, making them top choices for retirees. Arizona and North Carolina also offer favorable treatment by exempting Social Security from taxation. However, consider property taxes and insurance costs, which can offset income tax savings.

What is the cheapest place to retire and buy a home?

Chattanooga and Knoxville, Tennessee offer homes starting around $300,000 with no state income tax and low property taxes. These cities provide the best overall value for retirees seeking affordability without sacrificing healthcare access.

Where do most retirees move to in 2027?

Florida continues to attract the most retirees, followed by Tennessee, Arizona, and North Carolina. These states offer tax advantages, warm climates, and growing healthcare infrastructure, making them popular choices for those seeking an active retirement lifestyle.

What are the best places to retire for healthcare access?

Scottsdale, Arizona (Mayo Clinic), Knoxville, Tennessee (UT Medical Center), and The Villages, Florida (on-site medical centers) offer the strongest healthcare access. These locations have top-tier hospitals and specialists within a short drive, which is critical for retirees with chronic conditions.

How do property taxes compare across top retirement destinations?

Tennessee's effective property tax rate is about 0.6% of home value, Florida averages 0.8-1.0%, Arizona is 0.6-0.8%, and North Carolina is 0.7-0.8%. On a $400,000 home, this means annual taxes range from $2,400 in Tennessee to $4,000 in Florida.

What is the impact of HOA fees on retirement budgets?

HOA fees vary widely: The Villages charges $275-$400 monthly, Sun City Arizona charges $150-$250, while standalone homes in Greenville or Chattanooga often have fees under $50. These recurring costs can add thousands annually, so they must be factored into total monthly housing expenses.

How does homeowners insurance affect retirement costs?

Florida homeowners insurance averages $3,600-$6,000 annually for a $400,000 home due to hurricane risk, while Tennessee averages $1,200-$1,800 and Arizona $1,000-$1,500. Coastal locations can add $200-$400 per month to housing costs, significantly impacting fixed budgets.

FAQ

What is the best overall place to retire and buy a home in 2027?

The Villages, Florida ranks as the best overall for its combination of no state income tax, complete on-site amenities and healthcare, and a golf-cart-accessible active-adult lifestyle with homes from $280,000 to $700,000+. However, monthly amenity fees can exceed $400, so budget accordingly.

What is the best value place to retire and buy a home?

Knoxville, Tennessee offers the best value with homes from approximately $300,000, no state income tax on wages or retirement income, low property taxes, and a mild four-season climate. It also has strong healthcare access through UT Medical Center.

Which retirement destinations have no state income tax?

Florida (The Villages, Sarasota) and Tennessee (Knoxville, Chattanooga) levy no state income tax, fully protecting Social Security, pension, and retirement account withdrawals. This can save retirees thousands annually compared to states with income taxes.

Which places are best for retirees who dislike extreme heat?

Asheville, North Carolina and Boise, Idaho offer four mild seasons with cooler summers. Prescott, Arizona sits at 5,400 feet elevation for milder temperatures than Phoenix, but still has dry heat. These options avoid the intense humidity of Florida or the scorching summers of lower Arizona.

Do these places have good healthcare for retirees?

Yes. Scottsdale hosts Mayo Clinic Arizona, Knoxville has UT Medical Center, and The Villages, Sarasota, and Asheville all have strong regional hospital systems. Retirees over 65 visit doctors 4-5 times annually, so proximity to quality care is a critical factor.

Are coastal retirement homes a good idea given hurricane risk?

Coastal Florida and the Carolina coast carry hurricane exposure and rising insurance premiums, which can add $3,000-$6,000 annually. Inland options like Knoxville, Asheville, and Chattanooga avoid this risk entirely, offering lower insurance costs and greater financial stability.

How much should I budget for total monthly housing costs in retirement?

For a $400,000 home bought with cash, budget $700-$1,883 monthly, including property taxes ($200-$333), insurance ($100-$500), HOA fees ($0-$400), utilities ($200-$350), and maintenance reserves ($200-$300). This must fit within your fixed income, so calculate carefully before choosing a location.

What is the mistake most retirees make when choosing a retirement home?

The most common mistake is focusing on purchase price while ignoring total monthly carrying costs. A cheaper home with high HOA fees and insurance can cost more monthly than a pricier home with low fees. Always compare total monthly housing costs, not just the sticker price.

Should I rent before buying in a retirement destination?

Yes, renting for six months in the top two candidate locations is a practical approach. It lets you test the actual trade-offs in daily life, including climate, healthcare access, and community fit, before making a significant financial commitment.

Sources

• https://www.realtor.com/guides/
• https://www.zillow.com/home-values/
• https://www.redfin.com/news/data-center/
• https://www.niche.com/places-to-live/search/best-places-to-retire/
• https://realestate.usnews.com/places/rankings/best-places-to-retire
• https://taxfoundation.org
• https://www.wsj.com/real-estate
• https://www.mansionglobal.com
• https://www.aarp.org/livable-communities/

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