AARP Hearing Center
10 Great Places to Retire That Have Cheap Housing
Cities and towns in three states stand out for livable communities with low home prices
The Schuylkill River Boardwalk in Philadelphia, one of several Pennsylvania cities and towns that rate highly for livability and low-cost housing.
Getty Images
Key takeaways
- Housing makes up more than 36 percent of spending for Americans age 65-plus, making affordable housing a key retirement consideration.
- Comparing AARP’s Livability Index, which ranks the best places to live for older adults, with real estate data shows low home prices can coexist with strong access to health care, recreation and social engagement.
- Several of the communities that exemplify that match are in Iowa, Minnesota and Pennsylvania and range from small towns to major cities.
Housing accounts for more than 36 percent of spending by Americans age 65-plus, according to the U.S. Bureau of Labor Statistics, so if lowering your cost of living is a retirement priority, finding a place with affordable housing is a good starting point.
Iowa, Pennsylvania and Minnesota might be especially good places to start. By cross-referencing data on home values from real estate platform Zillow with AARP’s Livability Index Top 100, which ranks the country’s 100 best places to live for older adults, we found the 10 with the cheapest housing — and nine of them are in those three states.
More Ways to Benefit
- Related Benefit 1
- Related Benefit 2
- Related Benefit 3
- Related Benefit 4
- Related Benefit 5
Of course, it isn’t just home prices that make these 10 places stand out. Each offers an array of cultural, social and wellness opportunities for older Americans. That balance is at the heart of the Livability Index, which assesses cities, counties, towns and even neighborhoods on quality-of-life factors such as housing, transportation, health care, safety and social and civic engagement, drawing on more than 50 data sources to rate them on a 1 to 100 scale.
“When looking for a community to live in, affordability is a key concern and is one of several factors that determine whether it’s best for you as you age,” says Rodney Harrell, vice president of family, home and community at the AARP Public Policy Institute.
He continues, “While some fast-growing, high-cost cities have many features and get lots of attention, there are communities where costs are relatively affordable, yet [residents] have the ability to access services, civic life and other things that make a place more livable.”
The Livability Index Top 100 is divided into top 25s in four population categories (small, midsize, large and very large), but this list considers all 100 together — and shows that low-cost housing can combine with high quality of life anywhere, from small towns to major urban centers. The listed average home values are as of Aug. 31.
1. Knoxville, Iowa
Population: 7,493
AARP livability score (and rank): 69 (No. 5, small)
Average home value: $211,086
Located about 40 miles southeast of Des Moines, Knoxville offers housing 43 percent cheaper than the U.S. average, along with a host of services, amenities and attractions, including a recreation center offering fitness classes and wellness assessments, a hospital and Veterans Affairs clinic, two wineries, a golf club and the Grand Theater, a historic movie house and performance venue.
Knoxville’s biggest claim to fame — and the reason its official logo features checkered flags — is as the “Sprint Car Capital of the World,” home of Knoxville Raceway, the National Sprint Car Hall of Fame and the Knoxville Nationals, considered the Super Bowl of the sport. The race season runs from April to September, and there’s a ticket discount for patrons 62 and older.
2. Philadelphia, Pennsylvania
Population: 1,582,432
Livability score (and rank): 61 (No. 17, very large)
Average home value: $233,728
“The East Coast is full of big cities that are expensive places to live, but Philadelphia is relatively affordable and a mainstay on our Livability Index Top 100, in part due to its combination of relatively affordable housing and transportation options,” Harrell says. “This can keep costs low while giving retirees many of the amenities that make a city livable.”
Along with several of Pennsylvania’s best hospitals (according to U.S. News & World Report), Philly boasts an expansive public transit network and arts, culture and entertainment options befitting a major metropolis steeped in U.S. history, from the Philadelphia Museum of Art to the Liberty Bell to, now, LeBron James. The city’s older-adult recreation centers offer health fairs, art programs, day trips and cultural events.
3. Pittsburgh, Pennsylvania
Population: 303,620
Livability score (and rank): 61 (No. 24, large)
Average home value: $239,865
At the other end of Pennsylvania, you’ll find another big city with low housing prices and cultural institutions that rival Philly’s (the Andy Warhol Museum, the Frick art museum and the August Wilson African American Cultural Center, to name a few) and Allegheny Mountains recreation on your doorstep.
The Osher Lifelong Learning Institute at the University of Pittsburgh offers educational opportunities for adults 50 and older. Pittsburghers also get access to top-notch medical care: U.S. News & World Report ranks UPMC Presbyterian Shadyside as the state’s No. 2 hospital and rates it “high performing” in two specialties and 17 procedures.
An aerial view of downtown Marshall, Minnesota
Getty Images
4. Marshall, Minnesota
Population: 13,880
Livability score (and rank): 66 (No. 20, small)
Average home value: $242,209
Parks are one of the chief perks of this affordable small town in southwestern Minnesota, with multiple green spaces offering a range of activities, from aquatic centers and pickleball courts to disc golf and doggie play areas. The Marshall-Lyon County Library regularly hosts educational speakers, movie screenings and even live theater.
The city’s adult community center hosts a variety of clubs for all kinds of interests, including gardening, ham radio and stamp collecting, as well as dance classes and games like mahjong, bingo and cribbage. And at Southwest Minnesota State University, there’s an ongoing lineup of sporting events, student art exhibitions and live performances.
“Since social isolation is a widespread challenge, communities that offer opportunities for social engagement throughout life have advantages for those who plan to retire there,” Harrell says. “Connecting with others and being able to be involved in your community is important to so many of us.”
5. New Ulm, Minnesota
Population: 14,066
Livability score (and rank): 67 (No. 14, small)
Average home value: $254,537
About 90 miles southwest of the Twin Cities, New Ulm is known for its deep German heritage, exemplified by the 45-foot-tall Glockenspiel clock tower in the town square and an Oktoberfest rated by USA Today readers as one of the country’s 10 best.
In fact, New Ulm also boasts a slate of distinctive community events, German-themed and otherwise, including HermannFest, Bavarian Blast, the New Ulm Quilt Show and Spikin’ in the Street, a downtown sand volleyball tournament. For outdoor recreation, there’s hiking, swimming and more at Flandrau State Park, just minutes from downtown, and angling for bass, catfish and walleye in the Minnesota and Cottonwood rivers.
The Harrisburg, Pennsylvania, skyline as seen from the Susquehanna River
Getty Images
6. Harrisburg, Pennsylvania
Population: 50,092
Livability score (and rank): 64 (No. 9, midsize)
Average home value: $267,027
Pennsylvania’s capital packs a lot of history, culture and amenities into its modest size, including miles of green belts and multiple parks to explore and a walkable Arts District of galleries, performance venues and more, stretching from downtown to the Susquehanna riverfront.
On the river itself, mile-long City Island, a beloved local landmark, boasts an antique carousel, a miniature railroad, a seasonal beach club bar and FNB Field, home of the city’s minor league baseball team, the Harrisburg Senators.
With outposts of Penn State Health and the University of Pittsburgh Medical Center, local retirees “have access to substantial health care resources without needing to live in a major city,” says Jared Knaub, managing partner at REMAX Delta Group in Harrisburg.
7. Dauphin County, Pennsylvania
Population: 287,484
Livability score (and rank): 61 (No. 23, large)
Average home value: $279,969
Like what Harrisburg has to offer but want to live somewhere a bit less urban? Surrounding Dauphin County also makes our list of livable places with low-cost housing, including smaller towns such as Halifax, Williamstown and Hershey. The latter, of course, is home to the famed chocolate company as well as the 23-acre Hershey Gardens and the sprawling Hersheypark resort and amusement park, tailor-made for grandkid visits.
“We also have the Susquehanna River, the Appalachian Trail, state parks, trails and a tremendous amount of outdoor recreation nearby,” Knaub says. “A lot of those activities are either free or relatively inexpensive, which I think is particularly important when you’re talking about quality of life during retirement. You don't necessarily have to spend a lot of money to stay active and have something to do.”
A row of colorful historic buildings in Lincoln, Nebraska
Getty Images
8. Lincoln, Nebraska
Population: 291,932
Livability score (and rank): 62 (No. 16, large)
Average home value: $293,764
An AARP-designated Age-Friendly Community, Lincoln has a three-year action plan in place to improve transportation, accessible housing and social inclusion for older adults. The local health care landscape is robust, with numerous hospitals and medical facilities, including a Veterans Affairs clinic, and CHI Health Nebraska Heart, which specializes in cardiology and vascular care.
Nebraska’s capital also bustles with activities and cultural opportunities: shopping, dining and browsing art galleries in the historic Haymarket District; stage and musical performances by the Nebraska Repertory Theatre, the Lincoln Community Concert Band and the Lincoln Civic Orchestra; and strolling among floral displays featuring more than 30,000 annuals in the Sunken Gardens.
Town square in Winterset, Iowa
Getty Images/iStockphoto
9. Winterset, Iowa
Population: 5,384
Livability score (and rank): 66 (No. 21, small)
Average home value: $294,070
The smallest community on this list punches well above its weight in terms of glamour. Not only is Winterset the birthplace of John Wayne — his modest childhood home is the centerpiece of a museum dedicated to the Duke — but the area's famed covered bridges feature prominently in the Clint Eastwood-Meryl Streep film The Bridges of Madison County, adapted from the best-selling novel.
But there’s more to Winterset than movie lore. You can browse quaint boutiques around the town’s historic square, explore City Park’s lush hedge maze and castle-like Clark Tower, take in cultural history via design delights at the Iowa Quilt Museum and walk lush woodlands in nearby Pammel Park, one of Iowa’s first state parks.
10. New Cumberland, Pennsylvania
Population: 7,531
Livability score (and rank): 66 (No. 23, small)
Average home value: $297,650
Just across the Susquehanna River from Harrisburg, New Cumberland offers many of the same amenities and perks in a small-town package (though technically, it’s a borough, not a town), including a downtown full of unique shops and restaurants, a movie theater that also hosts live performances, and a comedy club that draws familiar faces from film and TV. The annual Apple Festival draws crowds to Borough Park each fall.
New Cumberland’s location in south-central Pennsylvania makes it a prime spot for regional getaways, says Knaub, an “affordable home base [with] access to the rest of the mid-Atlantic and Northeast. You can go from farmland and mountains to a major city, the Chesapeake Bay, the Atlantic Ocean ... without needing to get on an airplane. Quite an unusual combination.”
The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
AARP Membership
Join AARP for only $15 per year with automatic renewal. Get instant access to members-only products and hundreds of benefits, a free second membership, and a subscription to AARP The Magazine.
More From AARP
AARP’s Smart Guide to Retiring Abroad
These steps can help you pick the right place, organize your affairs and get settled in
10 Affordable Retirement Destinations Abroad
Compare monthly budgets and lifestyles across popular retirement spots
7 States With Milder Weather and Lower Risks
These seven options offer cooler climates, reduced hazards and key services retirees need