Determining where to live post-retirement is crucial. According to a June 2025 Bankrate study, the average annual cost of homeownership in the U.S. is about $21,400, covering internet, cable, maintenance, taxes, insurance, energy, and utilities. Due to inflation, a competitive housing market, and rising interest rates, homeowners frequently realize the significant impact of even a 1% change in mortgage rates.
Whether you’re living on a fixed retirement income or have more flexibility, choosing a retirement community that offers independent living essentials — community, meals, and activities — could be a smart investment. With healthcare costs stressing many seniors about their future medical expenses, the right retirement community can either alleviate or exacerbate the financial burden. According to KFF, the average annual health insurance premium in 2024 was about $8,951 for individuals and $25,572 for families, marking increases of 6% and 7%, respectively. The national median cost for an independent community in the U.S., according to A Place for Mom, is $3,145 per month, with state medians ranging from $2,250 to $5,650. Consider these factors before committing to an overpriced retirement community.
Highland Park, Illinois
According to GoBankingRate, Highland Park, Illinois, is one of the most expensive retirement communities in the U.S. Over a quarter of its population is 65 and older, with an annual homeownership cost of about $65,989 per year. With the national average at $21,400, owning a home here is over three times as costly annually. Comparing Highland Park’s average home value of $713,464 with Redfin‘s May 2025 median home sale price of $441,738, it may be wise to explore more affordable housing options elsewhere in Illinois.
According to A Place for Mom, the median monthly cost of independent living in Highland Park is $5,935, compared to the state’s average of $4,394 and a national median of $2,900. Regardless of whether you buy a home or reside in a community in Highland Park, you’ll end up spending more than necessary on housing.
Boca Raton, Florida
Florida is a popular retirement destination, but Boca Raton can be costly. Seniors make up 25.7% of the population, despite home prices being higher than Highland Park. At $734,478, it approaches ¾ of a million dollars, nearly $300,000 above the national median of $441,738, translating to an average annual mortgage of $46,391. According to The Mortgage Bankers Association (MBA), the national median mortgage payment as of April 2025 is $2,186 or $26,232 per year. In Boca Raton, annual housing costs are $69,451, over three times the national average of $21,400.
The U.S. Bureau of Labor Statistics (BLS) reports the average annual expenditure on food at home was $6,053, while average healthcare costs in 2024 were $8,951. According to Move.org, the average utility cost is $583 per month or $6,996 per year. In Boca Raton, the annual averages are $5,286 for groceries, $7,615 for healthcare, and $4,084 for utilities. Despite some lower living costs, housing expenses can negate these savings. Consider other Florida towns for retirement, even without savings.
Palm Beach Gardens, Florida
With over 31% of Palm Beach Gardens’ population being 65 and older, community is abundant. However, be prepared for an average annual mortgage of $48,837 on a home valued at $773,214, costing about $71,780 per year. The influx of high-net-worth professionals has driven up living costs. Many moved from pricier northeastern regions during the COVID-19 pandemic, seeking remote work and better amenities. Some Floridians left billionaire-infested Palm Springs for cheaper Palm Beach Gardens, just 12 miles away.
Considering how long $250,000 in retirement savings could last in Florida, an average home value over ¾ of a million dollars isn’t a bargain. It might be wise to exclude Palm Beach Gardens from your retirement community list and consider a more affordable coastal town reminiscent of Key West.
La Quinta, California
Purchasing a home in La Quinta, CA in 2024 would cost you $783,236. Maintaining that home will cost approximately $71,896 per year, with an average annual mortgage of $49,470, or around $4,123 per month. This home value is over $300,000 above the median $441,738, and more than double the national median mortgage. Groceries, healthcare, and utilities cost $4,816, $6,582, and $4,537 per year respectively, all below national averages for in-house food at $6,053, healthcare at $8,951, and utilities at $6,996 per year. The difference of $1,237 for groceries, $2,369 for healthcare, and $2,459 for utilities amounts to an annual savings on living costs of $6,065 per year.
However, these savings don’t offset the significant cost of housing, which includes both the home price and maintenance. The perceived savings merely reduce the annual loss but don’t eliminate it.
Scottsdale, Arizona
If you’re familiar with Arizona, it’s no surprise that Scottsdale makes this list. It’s in a state where a million dollars is often needed for retirement. Living costs in Scottsdale reflect this, with an average 2024 home value of $957,314 and $82,131 in yearly expenses. An annual mortgage averages $60,465, or roughly $5,039 per month. This far exceeds the median national mortgage, and when combined with $82,131 in homeownership expenses, totals about $11,883 per month. This explains why a million dollars is often necessary for retirement in Arizona.
Healthcare, groceries, and utilities aren’t far above national averages, but at $6,975, $4,955, and $4,338 respectively, they aren’t the cheapest either. Living in Scottsdale can be financially challenging without substantial retirement savings. However, if affordable, the city offers exceptional outdoor experiences.
Fort Lee, New Jersey
Fort Lee, New Jersey, is one of the U.S.’s most expensive retirement communities. With home prices nearing a million dollars, Fort Lee requires about $917,000 in retirement savings on average, coupled with $82,893 in home-related expenses. This results in an annual mortgage of $57,922. Although healthcare costs are below the national average, they are still high at $7,382, even with Medicare benefits.
According to a Place for Mom, independent living in Fort Lee averages $6,290 per month, among the highest in the U.S. While this is average for the state, it’s over $2,000 above the national average and just over $3,000 above the national median. Whether renting in a community or buying property, expect to pay significantly for the privilege.
Hilton Head Island, South Carolina
Hilton Head Island has a significant senior population, just under 40%. Surprisingly, given the 2024 home value of about $1,012,359. Managing the associated expenses will take an average $84,494 from your retirement savings, with an annual mortgage of $63,942. This is more than double the national median home value. For those on a fixed income or without millionaire status, this may not be the best choice. Consider that one of the best places to live in South Carolina has a cost of living nearly 7% lower than the national average.
A Place for Mom reports the average monthly cost of independent living on Hilton Head Island as $4,583, higher than both state and national averages. While renting in a retirement community is better than buying, moving north might be wiser. Consider this charming North Carolina town with boardwalks and beaches for retirees.
Pearl Harbor, Hawaii
Hawaii’s economy may not be the strongest, but its expenses are high. The idea of beach living is appealing, but a 2024 home value of $967,106 may not be. Managing that home’s expenses will cost $89,695 annually, making Pearl Harbor one of the most expensive retirement communities in the U.S.
Living costs, including groceries at $6,701 (national average $6,053), healthcare at $7,668 (national average $8,951), and utilities at $7,549 (national average $6,996) are also high. Independent living in Pearl City averages $6,246 per month, as per a Place for Mom, surpassing national and state averages, and nearly doubling the national median.
Palm Springs, California
A 2024 home value of $1,064,304 awaits retirees in Palm Springs, California. Homeownership expenses here average $89,863 annually. On top of this, you’ll face an average mortgage of $67,223 yearly, or $5,602 monthly. The total housing cost of $13,090 per month highlights the income required to be considered upper class in California. While groceries, healthcare, and utilities are within the national average, it’s questionable how much would remain for these after housing costs.
Independent living costs $3,637 per month in Palm Springs, according to a Place for Mom. Although this is lower than the state average by nearly $1,000 per month, better options exist elsewhere.
Cerritos, California
Cerritos, a Los Angeles suburb, is one of America’s most expensive retirement communities due to housing costs. With over a quarter of the population aged 65 and up, the social scene may not outweigh the cost of living. Cerritos’ average home value is $1,092,307, with housing expenses exceeding many people’s salary at $92,771 annually. The average mortgage is $68,992 per year, or $5,749 per month. With the national median at $2,173, you’d pay a premium of over $3,000 monthly, not including other housing expenses. Ultimately, the average home in Cerritos costs more than double the national median sale price.
Independent living is more affordable but still costly. According to a Place for Mom, the average cost is $4,446 per month, above both the national average and median.
Seal Beach, California
Seal Beach, California’s average home value is $1,502,206, with an average annual mortgage of $94,881, or about $7,907 per month. Even with the retirement savings to buy a home in Cerritos, living there might not be affordable. The average annual home expense in Cerritos is $117,197, or roughly $9,766 monthly. If handling $17,673 monthly in mortgage and other housing expenses seems daunting, Cerritos may not be a suitable retirement choice.
According to a Place for Mom, independent living costs $4,423 per month in Seal Beach. Although this might seem like a bargain compared to homeownership costs, it’s still over $1,000 above the national median, potentially straining your wallet.
Walnut Creek, California
Retirement in Walnut Creek, California, isn’t cheap, with the average home value surpassing a million dollars at $1,480,984. Assuming you make a down payment, you’d face an average annual mortgage of $93,541, or around $7,795 monthly. Annually, home-related expenses average $118,693, or about $9,891 monthly. Considering the difficulty of obtaining a mortgage in California in the next decade, purchasing a home here might not be worthwhile. Independent living offers some relief but not much. According to a Place for Mom, the average cost in Walnut Creek is $5,278 monthly, higher than state and national averages, and the national median.
In Walnut Creek, essentials are more costly. Groceries cost around $5,373 annually. Utilities run about $4,346 annually. While both costs are below national averages, the benefits vanish once you factor in homeownership costs. Healthcare is particularly expensive. While seniors face rising healthcare costs nationally, averaging $8,951 in 2024, Walnut Creek’s $9,131 healthcare cost is among the U.S.’s highest. Retire in Claremont for a California lifestyle without the high costs.
Rancho Palos Verdes, California
Rancho Palos Verdes, California, flaunts an average home value of $1,995,454, nearly $2 million. This results in a substantial annual mortgage, averaging $126,036. Few retirees envision spending $10,503 monthly on housing, let alone related expenses. In Rancho Palos Verdes, these expenses average $149,970 yearly. California isn’t among the U.S.’s cheapest retirement states, and even for its residents, this is pricey.
Independent living, according to a Place for Mom, costs around $4,772 monthly, or $57,264 annually. If giving up equity isn’t an issue, this is a better option, as owning a home in Rancho Palos Verdes costs $276,006 annually when combining the $126,036 mortgage and $149,970 in housing expenses. However, the idea of “better” is relative, as independent living costs exceed state and national averages, plus the national median.
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