If you want to retire in an expensive city like Los Angeles or New York, $5,000 a month is probably not enough. However, there are many great cities across the United States where you can live relatively luxuriously even with that level of income. Even better, many of the more affordable and lesser-known cities in the United States actually have much better livability scores than larger cities.
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To determine which cities are the best choices in terms of both quality of life and cost, GOBankingRates uses the U.S. Census’ American Consumer Survey, Sperlings BestPlaces, Zillow Home Value Index, and Bureau of Labor Statistics 2022 We obtained data from a variety of sources, including: Consumer Expenditure Survey, AreaVibes, and Federal Reserve economic data. Cities with average monthly costs above $5,000 were excluded. The livability index results were given a weight of 1.5, and the total monthly costs were given a weight of 1.0. The results are shown here in reverse order.
Little Leon from Iowa may not be on the radar of most retirees, but perhaps it should be. In a town with a population of 1,716 people, a home loan that averages just $669 a month means you can reduce your monthly income by $5,000 and still have an average of more than $800 each month.
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In fact, Tiffin’s housing costs are the highest of the top 10 cities on this list, but they’re still more than 70% lower than the national average, with average mortgage costs of just $993 per month. Overall, costs in the city of 17,822 (which has a very high livability rating of 82) are more than 28% lower than the national average.
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When you hear the name Waterloo, you might think of famous generals or ABBA songs, but it’s also home to 67,695 residents. Waterloo has very cheap transportation and housing, and boasts one of the highest livability scores in the country at 81.
Huntington, West Virginia
Although West Virginia is generally inexpensive, Huntington is one of two cities that combines low costs with a high quality of life. Costs are about 25% lower than the national average, with average annual mortgage payments of just $8,223. The city’s livability score of 81 is among the highest in the country.
Frostburg has a population of just 7,282 people, but its livability score is off the charts. At 85, Frostburg boasts the highest livability score of the 168 cities overall in the study. Although slightly more expensive than any of the top 10 cities, Frostburg’s overall cost index is still only 74.6.
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If you’re looking for a place to retire in Texas, Pampa may not be the first name that comes to mind, but it’s one of the two most affordable towns in the state with a high livability score. It’s one. In addition to no state taxes, residents enjoy amenities that contribute to a 76 Livability Score while paying an average monthly mortgage payment of just $528.
Clarksburg, West Virginia
Looking to retire in a city of 16,000 people with a livability score of 79 and annual expenses of just over $41,000? Look no further than Clarksburg. You can borrow a monthly mortgage for as little as $620, and your total cost is only 71.6% of the national average.
Robstown is the second town in Texas to make the top five, and this small town’s 10,372 residents definitely enjoy a high livability score of 78. Transportation and housing are relatively very cheap in Robstown, with citywide costs around 29%. This is below the national average.
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Johnstown has a high Livability Index of 78, putting it near the top of the rankings, but cost structure also plays a big role. Johnstown has the lowest housing costs of all 168 cities surveyed, at just 13.3% of the national average. Overall, costs are more than 30% below national standards.
Akron, Ohio has taken over the top spot for luxury retirement for $5,000 a month. Despite its relatively large population of 191,483 people, the city still boasts a high livability score of 81, with average costs over 31% lower than the national average.
Methodology: To find the best cities to retire on $5,000 a month, GOBankingRates used the U.S. Census’ U.S. Consumer Survey list of cities. Using Sperlings BestPlaces, the cost of living across many spending categories was calculated for the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey for people 65 and older, showing the cost of spending for each spending category in each city. . Using the Zillow Home Value Index to find his July 2023 average home price in each city and his 30-year national fixed mortgage rate from Federal Reserve economic data, We calculated the average monthly mortgage cost. Add your mortgage costs and your out-of-pocket costs to get your average total monthly costs. All cities above $5,000 were removed, and the remaining cities’ livability index was obtained from AreaVibes. The livability index and total monthly costs were scored, with the livability index weighted at 1.5 and the total cost weighted at 1.0. We combined and sorted the scores to show you the best cities to retire to on $5,000 a month. All data is collected and current as of September 13, 2023.
Photo Disclaimer: Please note that photos are for representative purposes only. Therefore, some photos may not reflect the locations mentioned in this article.
This article originally appeared on GOBankingRates.com: Luxurious Retirement: 10 Best U.S. Cities for Retirees on a Budget of $5,000 a Month
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