Retirees frequently choose year-round sunny weather and stunning landscapes when choosing a retirement place. US cities in states like Arizona, California, and Florida are popular places to live this way. If you want to stick to a budget, you’ll have to be picky about where you reside.

Although there are still certain cities in these states where you can retire for a reasonable price, others are becoming prohibitively expensive. We’ve done some research to help you avoid the mistake of moving to a location that will take up a larger portion of your hard-earned savings than it should.

We’ve found a few US cities you might want to avoid if nesting expansion isn’t a priority by looking at characteristics such as percentage of the population over 65, median home list price, the annual cost of living, and whether there is a tax on social security or retirement income.

1. Rancho Palos Verdes, California

Rancho Palos Verdes, California is a medium-sized coastal city i.e., located on the ocean, a bay, or an inlet in the state of California. It is the 200^th largest community in California, with a population of 41,630 people and nine constituent neighborhoods.

This Pacific Ocean-view community has some expensive homes and high living costs, making it the most unaffordable place for seniors. The total annual cost of living is $151,674.22, which is the highest on the list. In addition, retirement income is taxed, and the median list price for a home is the highest on the list at $1,371,412.80.

2. Walnut Creek, California

Walnut Creek is a larger, mid-sized city in the state of California. It is the 128^th largest community in California, with a population of 70,178 people and 19 constituent neighborhoods. Walnut Creek is a decidedly white-collar city, with 94.20 percent of the workforce working in white-collar jobs, which is significantly higher than the national average.

Walnut Creek home prices are not only among the most expensive in California but also among the most expensive in the country, with a median home value of over $770,000 and an annual cost of living of more than $100,000.

3. Lincoln, California

Lincoln is a medium-sized city in the American state of California. It is the 191^st largest community in California, with a population of 48,375 people and 11 constituent neighborhoods. In recent years, Lincoln has seen a significant increase in newer housing development.

New home construction is frequently the result of new residents who are middle-class or wealthier, drawn in by jobs, a healthy local economy, or other amenities as they leave nearby or far-away areas for greener pastures, but it isn’t particularly friendly to retirement budgets.

The average home list price in Lincoln, California is $586,504, which is on the high side. Furthermore, the total annual cost of living is $76,247.

4. Prescott Valley, Arizona

One of the many US cities that are way too expensive for retirees is Prescott Valley, a medium-sized town in Arizona. With a population of 46,525 people and eight constituent neighborhoods, Prescott Valley is Arizona’s 24th largest community. Prescott Valley has an ethnically diverse population. Prescott, Arizona may appear to be ideal for outdoor-loving retirees.

However, with high home prices and high living expenditures, it may not be ideal for retirees on a tight budget. In the last five years, the median list price of a home in Prescott Valley, Arizona, has increased by 69.6 percent. The average home now has a value of $446,277, and the total annual cost of living is $64,487.

5. Lake Havasu City, Arizona

Lake Havasu City is a larger, mid-sized city in the state of Arizona. Lake Havasu City is Arizona’s 16^th largest community, with a population of 55,965 people and 12 constituent neighborhoods.

It is situated on Arizona’s border with California and the Colorado River, retirees 65 and older who are considering this lake town as a retirement location should reconsider, as this lake town isn’t very economical for retirees.

The median home list price has climbed by 72.11% in the last five years. The average listing price for a home in Lake Havasu City, Arizona is $330,500, which is on the high side. In addition, the annual cost of living is $53,748.

6. Apache Junction, Arizona

Apache Junction is a medium-sized city in the American state of Arizona. Located just outside of Mesa and Chandler. Apache Junction is the 26^th largest community in Arizona, with a population of 42,672 people and 13 constituent communities, and just approximately a third of the citizens are over the age of 65.

It is ranked second in terms of median home list price rise. List prices have increased by 73.64% in the last five years. The average listing price in Apache Junction, Arizona is $219,345 which is on the expensive side. Furthermore, the annual cost of living is $52, 874. Additionally, senior citizens in this city are taxed on their retirement income.

7. Largo, Florida

Largo is a larger medium-sized coastal city in Florida located North of St. Petersburg. With a population of 85,062 people and 31 constituent communities, it is located near various beaches on the Gulf of Mexico. However, the high cost of living will make it unsuitable for retirees.

Largo, Florida, had the fifth-highest five-year median home price increase, at 67.85%. The average listing price in Largo, Florida is $233,977, which is on the higher end of the spectrum. In addition, the annual cost of living is $51,932.

Fortunately, retirees may get a reprieve because there are no taxes on retirement income or social security payments in this state.

8.  Bullhead City, Arizona

Bullhead City is a medium-sized city in the state of Arizona, located on the Colorado River. This city is Arizona’s 23^rd largest community, with a population of 40,985 people and 11 constituent neighborhoods. It provides a lot of opportunities for water-loving seniors, but it is not cheap.

The median list price of a home has risen by 60.02% in the last five years. In fact, the city boasts the seventh-highest year-over-year increase in property value. Bullhead City, Arizona has a median listing price of $253,907, which is on the higher end of the spectrum. Furthermore, the annual cost of living is $54,219.

However, if you really want to retire here, this book might help you.

9. Banning, California

Banning is a medium-sized city in California located between Palm Springs and San Bernardino. Banning is the 246th largest community in California, with a population of 31,221 people and eight constituent neighborhoods.

Here retirees have to pay taxes on retirement income but not on Social Security benefits. In the last five years, the median home list price has increased by 30.42 percent. The average listing price for a home in Banning, California is $280,175, which is on the higher end of the spectrum. Furthermore, the annual cost of living is $61,647.

Psst! Other countries could be an option, too. Here are some!

T.Z.