This Small, Pennsylvania City Is America’s Best Place To Retire In 2022
As home prices have soared throughout the Sun Belt, many retirees are trading the warmer winters there for a more affordable lifestyle elsewhere.
U.S. News & World Report named Lancaster, PA, about 90 minutes west of Philadelphia, as the best place to retire in its 2022–23 annual rankings. Home prices in the snowier metropolitan area were a median $344,700 in September, according to Realtor.com® data. That’s significantly less than the national median price of $427,250.
(Getty Images)
“Pennsylvania just edged out Florida,” says Emily Brandon, U.S. News senior editor for retirement. Retirees “still want to live near the beaches in Florida. [But] retirees and soon-to-be retirees told us this year that the thing that matters most to them is affordability.”
The digital media company looked at housing affordability, health care, retiree taxes, desirability, the job market, and the happiness of residents in the 150 largest metropolitan areas to come up with its list. Places that had more reasonably priced homes were ranked higher as this was a top concern of older Americans. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
The state of Pennsylvania scored half of the top 10 spots in the rankings, while Florida took only four. Florida is famously popular among seniors for having no income tax, so retirees can live off their savings without paying taxes on them. However, Pennsylvania doesn’t tax retiree Social Security incomes and pensions and home prices in its metros were cheaper than those in the Sunshine State.
Lancaster jumped from fourth to first place this year thanks to its strong health care for seniors, retiree tax rates, and general happiness. The area is known for its Amish and Mennonite communities.
“It has a mix of small-town charms and amenities that appeal to retirees,” says Brandon. “You can easily explore the countryside, but it’s also within two to three hours of several cities. It also has a downtown of its own.”
Another city of note, Miami, long popular with snowbirds and retirees, fell from No. 48 to No. 84 this year because of high home prices, with a median $599,000 price tag, and drops in desirability, health care, and the local job market.
Surprisingly, New York City, where real estate, taxes, and the cost of living is high, shot up the list to No. 14. This was due to the quality of local health care and the happiness of residents in spite of the high prices (at a median $655,950 for the metro area) and colder temperatures.
“The biggest drawback to retire in New York is the high housing costs,” says Brandon, who touted the city’s top hospitals. “But if you can swing it, there are so many amenities for retirees—from public transportation to job opportunities for those who continue to work in retirement and things to do.”
Top 10 places to retire
- Lancaster, PA ($344,700 median home price)
- Harrisburg, PA ($293,500)
- Pensacola, FL ($392,000)
- Tampa, FL ($429,450)
- York, PA ($329,450)
- Naples, FL ($777,450)
- Daytona Beach, FL ($399,383)
- Ann Arbor, MI ($449,830)
- Allentown, PA ($353,950)
- Reading, PA ($245,900)
