What Makes New Castle, Delaware an Affordable Place to Retire?

New Castle, DE is an affordable retirement option near the East Coast\'s biggest cities. (Image via Shutterstock.com)

On 55places.com’s list of most affordable places to retire, New Castle, Delaware was the 7th most affordable place to live. Mid-Atlantic residents know that Delaware’s no sales tax makes it a great place to go shopping, but lots of factors contribute to New Castle being an affordable place to call home.

The economy around New Castle is strong, and according to a housing market analysis, much of the growth in population since 2000 is from adults over 55 moving into the area. Here are some reasons why active adults are choosing to move to New Castle.

Cost of Living

According to an analysis done by Kiplinger, Delaware’s cost of living was 11% above the average for the country. Cost of living calculations usually take into consideration the costs of housing, transportation, food and goods, healthcare and utilities.

While Delaware’s is slightly higher than the national average, nearby states like Maryland, Northern Virginia, and southeast Pennsylvania are all much higher. Healthcare costs for a retired couple are also below average.

Average Home Price

The cost of housing plays a large role in the overall cost of living score. Generally, people shouldn’t be spending more than 30% of their income on housing in order for it to be called affordable. In New Castle, prices are especially affordable. 55places.com found that homes sell for an average of $127,000, and the housing analysis from the U.S. Department of Housing and Urban Development found that recently prices for resale single-family homes averaged $237,900 in 2017.

Compared to booming housing costs in the Washington, D.C. area, and higher prices just across the Pennsylvania border, these low prices offer a big incentive for active adults on a budget.


While the average income for 65+ households is relatively low in Delaware, at just above $50,000 a year, the state offers older adults great tax benefits. The state does not tax Social Security income and taxpayers over age 60 can exempt up to $12,500 worth of income from their taxes.

Income tax ranges from 2.2% to 6.6%, while the average tax rate in the country is about 21%. And of course, there is no sales tax and lots of outlet stores in the Wilmington area let residents take advantage of that benefit.

Affordable 55+ Communities Near New Castle, DE

Crossings at Christiana

The attached homes in the Crossings at Christiana range from the high $100s to low $200s. The tranquil and landscaped community includes a clubhouse with fitness and meeting rooms. Located south of the city, residents have easy access to Interstate 95 and the New Castle Airport.

Spring Arbor

Spring Arbor is a larger, resort-style community in the Middletown area south of New Castle. McKee builders plans to construct over 300 attached and single-family homes in the community, ranging from the low $200s to mid $300s. Residents can meet and socialize in a 7,000 square-foot clubhouse or exercise at the fitness center, in the swimming pool, or on trails in the neighborhood.

The Village of Hershey Run

Located in Wilmington, The Village of Hershey Run offers attached homes from the low to mid $200s. Residents enjoy scenic walks in the neighborhood, while located just minutes from I-95 and shopping malls. Active adults will also enjoy spending time in the exercise room, outdoor pool, and tennis courts, or getting to know other neighbors.

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

Share this post:

We're here to help! (800) 928-2055

Call us to speak with a customer service representative.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting [email protected] Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

The Best Places to Snowbird in 2021

We’ve gathered 25 of the best places for snowbirds, including cities in Florida, Arizona, California, Texas, South Carolina, and Nevada. For each entry, we’ve also provided a list of recommended 55+ communities in the area. If you’re ready to find your own winter retreat this season, here are some of the best places to consider.

A for rent sign is in the front yard of a home for rent in a 55+ community.

Can I Rent a Home in a 55+ Community?

Renting is a big part of our culture now. For some people, it’s a preference. Others rent their own home as a way to make extra income. So, can you actually rent a home in a 55+ community? Read on to find out.

Older couple riding bikes along a path beside palm trees and dry grass.

The Best Communities for Staying Active in Naples, FL

The southwestern region of Florida’s Gulf Coast has plenty of nature trails, parks, and preserves to allow for hiking, biking, fishing, and boating. When you want your neighborhood to help out with your plans for daily activity, check out some of these communities that specialize in keeping active adults healthy and on the move.

Aerial view of Miami skyscrapers against a blue sky.

Moving to Miami? Here’s Everything Retirees Need to Know

Miami is a city with its own energy. It’s on the extreme southeastern tip of the Florida peninsula, beckoning people to visit and stay. Ready to join the thousands of people moving to Miami annually? Here’s what you need to know before you arrive.

Fort Myers Communities Offering New Construction Homes

Homebuyers interested in Fort Myers homes for sale have the opportunity to customize many final details and finishes when they buy new construction properties. Florida’s southern Gulf Coast offers a lot of options, and some of the most attractive homes are found in a few select active adult communities in Fort Myers.

7 Popular Gated Communities in Fort Myers

Buyers looking for Fort Myers homes for sale are often interested in gated communities. The following communities are the most popular gated communities in Fort Myers because of their desirable location, floor plans, amenities, and much more. Take a look at what they have to offer in addition to security and privacy.

About 55places

We’re changing the way people 55 and older are searching for their perfect next place. With a national network of hand-selected real estate experts, plus comprehensive information, unbiased content, and on-the-go insight about thousands of communities across the country, we’re a trusted resource paving the way from here to home. Whether you’re interested in a low-maintenance single-level residence, an active lifestyle or age-qualified community, an intimate enclave, or anything in between, we can help you make your next move the best one yet.

Scroll to Top