With its sunny skies, dry heat, and affordable cost of living, the American Southwest is a top retirement destination. This area of the country is known for its stark beauty and breathtaking vistas, but the Southwest is a diverse collection of states. Each state and its cities have unique benefits and considerations for retirement. Explore the best places to retire in the Southwest and get to know what to expect from housing costs, health care access, culture, and more.
Arizona: The Classic Retirement Haven
Arizona tops many retirement wishlists. Popular retirement cities in the Grand Canyon State include:
Phoenix Metro
The Phoenix Metro area encompasses its namesake city, Scottsdale, Mesa, and Sun City. This spot is one of the most popular retirement destinations, in the Southwest and in general. When you live here, you have access to highly rated health care providers, plenty of golf courses, and a wide range of 55+ communities with resort-style amenities.
Tucson
While Phoenix is the first place people associate with Arizona, it’s hardly the only city worth considering. Tucson has many of the same qualities that make Phoenix popular, but it’s more affordable. Plus, it boasts a thriving arts scene and a plethora of outdoor activities.
Prescott and Sedona
If you are looking for a milder version of that famous Arizona heat, Prescott and Sedona have more temperate summers. Plus, these cities offer small-town charm alongside master-planned communities with world-class amenities.
Green Valley
Green Valley was intentionally designed with active adults in mind. You’ll find plenty of 55+ communities here, many of which offer an intimate setting that helps neighbors get to know each other.
Like any retirement area, it is important to weigh the pros and cons.
Pros
- Climate – Of course Arizona’s dry heat tops the list of its benefits. You can escape the humidity and leave behind cold, snowy winters.
- Tax advantages – Arizona has some attractive tax benefits for retirees. The state does not have inheritance or estate taxes, according to the Tax Foundation. You also do not have to worry about paying taxes on your Social Security benefits, according to AARP.
- 55+ communities – Arizona is home to a large collection of 55+ communities. You can explore this collection to find a spot with the right home type, price, and amenities.
Cons
- Hot summers – While Arizona’s heat is one of its best qualities, it can make for hot, oppressive summers. Luckily, you won’t have to look very hard for a 55+ community that has a pool to help you stay cool in the hottest months of the year.
- Rising home prices – Arizona’s status as a retirement hotspot means many people flock to the state, driving up home prices in some areas.
New Mexico: Affordable and Culturally Rich
Arid deserts and sharp mountains serve as the dramatic backdrop of life in New Mexico. And its distinct geography is complemented by a rich arts and culture scene.
Santa Fe
Santa Fe has all of the benefits of a major city. Art and culture thrive here. But this Southwestern city is also painted with historic charm and has the feeling of a small, welcoming community.
Albuquerque
Albuquerque is surrounded by mountains. Natural beauty is everywhere you look in this city that offers an affordable alternative to Santa Fe. You’ll also find good health care options and opportunities for an active outdoor lifestyle in this New Mexico city.
Las Cruces
Las Cruces is known for its proximity to national parks. The city enjoys the warm New Mexico climate, as well as a lower cost of living and many retirement community options.
Pros
- Affordable housing – Affordability is a key consideration for many people planning their retirement years. New Mexico scores high marks in this category.
- The culture – Just because you can find affordable housing in New Mexico does not mean you have to sacrifice your access to culture. This Southwestern state is known for its arts and culture scene.
- Four-season climate – The state has four distinct seasons, but the climate in New Mexico allows residents to enjoy the outdoors all year round. The days tend to be hot, and temperatures drop for cooler nights.
Cons
- Limited public transit – If you were hoping to ditch your car in your retirement years, you may find New Mexico’s lack of public transportation operations to be a downside.
- Safety considerations – New Mexico does have a higher crime rate than the national average, according to SafeHome.org. Keep in mind that crime is more prevalent in some areas of the state.
Oklahoma: Low Cost of Living With a Friendly Atmosphere
Oklahoma is an underrated Southwestern state that offers active adults a lower cost of living and access to plenty of culture.
Tulsa
The overall cost of living in Tulsa is 12% lower than the national average, and the cost of housing is 19% lower than the national average, according to PayScale. While less expensive to live in this city, residents still have the ability to enjoy the culture of an urban area and access to quality health care services.
Oklahoma City
Oklahoma City is being reshaped into a worthy retirement destination with a revitalized downtown that has a growing number of urban amenities. Yet, the cost of living remains affordable. Plus, the city is home to a picturesque collection of parks with plenty of space to walk, bike, and simply enjoy being outside.
Norman
Norman is a college town, but many of the accompanying qualities make it a good retirement spot as well. It has a small town charm that also incorporates a strong sense of culture.
Pros
- Low cost of living. Oklahoma’s affordability is one of the top qualities that makes it a desirable retirement destination.
- Friendly communities. Oklahoma has large, populous cities. But these metro areas are smaller than the major US cities. Active adults may find that the communities here have a friendly, tighter-knit feel.
- Tax advantages. Property taxes in Oklahoma are fairly low, according to SmartAsset. Plus, residents do not have to pay an estate or inheritance tax. Retirees will also appreciate that they do not have to pay a state income tax on Social Security benefits.
Cons
- Hot and humid summers. While part of the American Southwest, Oklahoma does have its humid days. You might find the heat and humidity of its summers to be a downside of settling here.
- Tornado risk. Oklahoma is located in Tornado Alley, an area of the U.S. more prone to tornadoes.
Texas: Diverse Options for Every Lifestyle
Texas is a magnet for newcomers. Over the past few years, hundreds of thousands of people have moved to this Southwestern state, according to Business Insider. This vast state is home to places that embrace many different lifestyles. Discover which Lone Star city fits your ideal retirement life.
Austin and Hill Country
Austin and the Hill Country area, including Georgetown, New Braunfels, and Fredericksburg, are characterized by a mild climate, vibrant culture, and access to quality health care. Austin, in particular, is celebrated for its art, music, and food scenes.
San Antonio
San Antonio’s cost of living is 9% lower than the national average, according to PayScale. San Antonio is also one of the oldest cities in Texas. You can still see some of the Spanish colonial architecture built back in the 1700s, according to the San Antonio Registry.
Dallas-Fort Worth Metro
The Dallas-Fort Worth Metro area includes Frisco and McKinney, as well as its namesake cities. You will find plenty of suburban amenities, including ample shopping and dining options, and plenty of active adult communities here.
Corpus Christi and South Texas
While Texas probably conjures images of deserts, you can also find coastal living in this Southwestern state in cities like Corpus Christi and the South Texas region. Corpus Christi is situated on the shores of the Gulf of Mexico, and it has a lower cost of living than many places in Florida.
Pros
- Tax advantages – Texas does not have a state income tax, according to AARP. As you calculate your budget, this tax benefit could be a plus.
- Warm winters – If you are looking to escape frigid winters in your retirement, the sunshine and mild winter of Texas beckon.
- Varying lifestyles – Whether you are looking for more rural or urban, historic charm or contemporary culture, Texas is a big state where people of many different lifestyles will find themselves right at home.
Cons
- High property taxes – While Texas is not without its tax advantages, its property taxes are the seventh highest in the country, according to SmartAsset.
- Traffic – Several of the major cities in Texas are known for high levels of traffic. The congestion in cities like Austin, Houston, and San Antonio could be a source of frustration.
Where to Start Your Search
The American Southwest has many attractive qualities as a retirement destination. The question is if one of these hot, sunny states is the right place for your retirement. Think about your retirement budget, your climate preferences, and your desired lifestyle. When you are ready, visit a few different spots to help you make a decision. Contact 55places.com to find your perfect Southwest 55+ community.
