Considering Retirement in Florida? These 6 States Are Quickly Replacing It

Florida has been the dream retirement destination for decades. Warm weather, no state income tax, beaches that stretch for miles. What’s not to love? Here’s the thing, though: the dream is getting expensive. Housing prices have skyrocketed, insurance costs have tripled in some areas, and hurricanes seem to be getting more frequent and more intense every year. Honestly, I think it’s time we talk about the alternatives. Plenty of retirees are now choosing other states, and there are some really compelling reasons why.

Let’s be real: Florida is still attracting retirees. Florida saw a net influx of more than 77,000 new retirees according to SmartAsset’s 2024 study, making it the undisputed leader in overall retirement migration. Yet there’s an emerging pattern that’s hard to ignore. The company’s analysis, based on U.S. Census Bureau data, found that just over 20 percent of those moving for retirement chose Massachusetts, while Florida drew slightly under 20 percent. That finding surprised even veteran trackers of retiree moves.

Several factors are driving people away, particularly those on fixed incomes. In just half a decade, the median price of a single-family house in Florida rose $150,000, or 60%. In July 2024, the median sale price was $409,700. Insurance is another serious problem. According to financial data firm Intercontinental Exchange (ICE), property insurance rates average $6,225 a year in Miami, $3,675 in Houston and $3,602 in Tampa, compared to a national average of $2,290. These costs are making people rethink the entire Florida equation.

Massachusetts: The Surprising New Champion

This one caught everyone off guard. Massachusetts was the No. 1 destination for older adults moving to a new state specifically for retirement in 2024, edging out perennial favorite Florida, according to online moving-services marketplace Hire A Helper’s latest report on migration trends. Why would retirees choose cold winters over eternal sunshine? It turns out the answer is more complex than weather preferences. Many retirees moving to Massachusetts already vacationed in places like Cape Cod or the Berkshires during their working years and fell in love with the landscape, culture, and four-season lifestyle.

Marquit says Hire A Helper has found in past research that people moving for retirement tend to be more affluent than the average American. The median household income for retirees who relocated in 2023 was $88,347, 17 percent above the national figure. This demographic can afford higher taxes in exchange for exceptional healthcare. States with high healthcare rankings for seniors include Massachusetts, Minnesota, and Connecticut. The state doesn’t tax Social Security benefits either, though it does have relatively high property taxes. Still, for many retirees, the tradeoff is worth it.

Texas: Wide Open Spaces and Zero Income Tax

Texas, already anticipated by experts to be a popular 2025 retirement destination, would receive an automatic inclusion in this roundup. The Lone Star State is already popular with residents for not taxing Social Security or having any individual income taxes. This is a huge draw for people watching their retirement funds carefully. Texas offers something Florida can’t quite match anymore: space and affordability in its smaller cities.

Tax-friendliness aside, recent GOBankingRates data revealed at least 10 Texas cities are considered hidden gems for retirees. Frisco, El Paso and Plano all received mentions thanks to low monthly expenditures and crime rates. The state has diverse geography too, from hill country to sprawling desert landscapes. Some people find the heat oppressive during summer months, which is fair. However, the cost savings and variety of communities make it an increasingly popular choice for retirees who want a mix of urban amenities and affordable living.

North Carolina: The Goldilocks State

North Carolina strikes a balance that feels just right for many retirees. GOBankingRates identified North Carolina as an up-and-coming state that will be popular with retirees. One major reason why North Carolina is so attractive to retirees is housing costs. You get mountain ranges in the west, beaches along the Atlantic coast, and vibrant cities like Charlotte and Raleigh in between. The climate is milder than Florida in summer, though you’ll see actual seasons here.

According to U.S. News & World Report, several major cities, including Charlotte and Raleigh, have median mortgage and rent costs that don’t exceed $1,500 a month. That’s significantly more affordable than Florida’s coastal cities. Property taxes are lower than the national average too, and homeowners insurance remains reasonably priced compared to hurricane-prone regions. The state also benefits from a strong healthcare infrastructure and plenty of colleges for lifelong learning opportunities.

South Carolina: The Affordable Coastal Alternative

South Carolina has quietly positioned itself as Florida’s more affordable cousin. South Carolina ranked second to Florida as a destination for retirees making interstate moves in 2023, according to an annual review of U.S. Census data by moving-services marketplace Hire A Helper. United Van Lines’ 2023 National Movers Study found that nearly 27 percent of people moving to the Palmetto State did so for retirement, the third-highest proportion in the country. The state offers many of the same perks as Florida – warm weather, beaches, golf courses – without quite as steep a price tag.

Cities like Charleston, Myrtle Beach, and Hilton Head have become major retirement hubs. Retiring in South Carolina provides an affordable alternative to Florida and North Carolina. $15,000 retirement income deduction for those 65+, no Social Security tax, and the cost of living is 11% below the national average. The climate is slightly milder than Florida’s sweltering summers, and while hurricanes remain a concern, insurance rates haven’t spiked as dramatically. There’s a thriving arts scene, historic neighborhoods, and a slower pace of life that appeals to many retirees.

Iowa: The Hidden Healthcare Gem

Midwestern states don’t usually top retirement lists, yet Iowa is changing that perception. Original research conducted by life insurance agency Choice Mutual cited Iowa as the best state for retirement in 2024 – and likely in the years to come. Several factors pushed Iowa to the top of the heap, including the state’s outstanding healthcare system, low crime rates, affordable housing, and low cost of living expenses. If you can handle cold winters, Iowa delivers on nearly everything else.

Retirees can anticipate spending around $400 in transportation costs and about $622 in healthcare expenses monthly, with the total monthly cost of living coming out to about $3,910. That’s roughly half of what retirees might spend in expensive Florida markets. The state offers robust healthcare access, friendly communities, and surprisingly vibrant small cities with theaters, museums, and cultural activities. It’s not for everyone, particularly those who crave year-round warmth. However, for budget-conscious retirees who value quality healthcare and safety, Iowa represents tremendous value.

New Hampshire: Tax Benefits Meet Natural Beauty

New Hampshire was the best state for retirement in 2025, while Sun Belt states faded in Bankrate’s latest study. The Granite State combines scenic mountain landscapes with surprising tax advantages. Its minimal tax burden – at 5.1% – is the lowest of any U.S. state. There’s no state income tax and no tax on Social Security benefits, which helps retirees stretch their dollars considerably.

The winters are harsh, there’s no denying that. Yet many retirees appreciate the distinct seasons and outdoor recreation opportunities throughout the year. New Hampshire ranks highly for healthcare access and has relatively low crime rates compared to national averages. According to a study conducted by Empower, New Hampshire has been ranked as one of the best states to retire in 2024. While some benefits of retiring in New Hampshire may change between now and 2034, we think it’s safe to say the Granite State’s tax-friendly reputation will continue to be a big draw with retirees. The state attracts retirees who value outdoor activities like hiking, skiing, and exploring charming New England villages.

Retirement decisions involve so much more than weather and taxes. These six states demonstrate that retirees are prioritizing different factors now: healthcare quality, insurance affordability, housing costs, and community character. Florida remains popular, particularly for those already settled there. However, the landscape is shifting as more people discover alternatives that better fit their budgets and lifestyles. Which state would appeal to you most?