10 most expensive places to retire in the U.S. based on home prices—over half are in California
10 most expensive places to retire in the U.S. based on home prices—over half are in California
Housing expenses can be some of the highest costs retirees face during their post-work years — and those expenses can vary greatly by location.
Based on home prices, California holds several of the most expensive places to retire, according to U.S. News and World Report’s “2024 Best Places to Retire in the U.S.” study.
The outlet analyzed the 150 most populated metropolitan areas in the U.S. and Puerto Rico. It used the latest data from the U.S. Census Bureau to estimate each area’s annual housing costs.
San Jose, California, takes the top spot with a median home price of $1,522,574, per U.S. News’ analysis. The cost of living there is also among the highest in the country, with residents paying more for everyday expenses such as utilities, groceries and gas, according to the report.
However, if you can swing the housing costs, San Jose offers a number of attractive benefits for retirees, including proximity to the ocean and around 300 days of sunshine a year.
San Francisco ranks second with a median home price of $1,117,862, according to U.S. News. Housing costs in the city have steadily risen over the past few years due to the growing population and a drop in new housing units, per the analysis.
On the upside, however, retirees may enjoy San Francisco’s award-winning restaurants, museums and pleasant weather.
Here are the 10 most expensive places to retire in the U.S., based on home prices, according to U.S. News and World Report.
1. San Jose, California
- Median home price: $1,522,574
2. San Francisco
- Median home price: $1,117,862
3. Salinas, California
- Median home price: $921,917
4. San Diego
- Median home price: $919,499
5. Santa Rosa, California
- Median home price: $888,600
6. Boulder, Colorado
- Median home price: $871,730
7. Los Angeles
- Median home price: $835,858
8. Naples, Florida
- Median home price: $806,604
9. Seattle
- Median home price: $769,983
10. Boston
- Median home price: $716,329
When deciding where to retire, an area’s housing costs and affordability can be important, but they’re not the only factors to consider.
Where you choose to retire will largely be driven by your personal preferences. For instance, you may want to choose a location based on how close it is to your family or what kinds of activities you’ll have access to such as hiking or surfing.
How much money you need to retire
Regardless of where you decide to spend your post-work years, it can be helpful to have a general idea of how much you’d like to save for retirement.
CNBC Make It’s retirement calculator can help you figure out how much you’ll need in order to cover your expenses based on factors such as your current age, income and your ideal retirement age.
DON’T MISS: Want to be smarter and more successful with your money, work & life? Sign up for our new newsletter!
Get CNBC’s free Warren Buffett Guide to Investing, which distills the billionaire’s No. 1 best piece of advice for regular investors, do’s and don’ts, and three key investing principles into a clear and simple guidebook.
CHECK OUT: Want to retire at 65 with $2 million? Here’s how much to save each month