The 10 Best Places in the USA to Retire on the Water for Less

We understand many retirees hear the siren call of the waterside and look for a place to relocate where they can soak in the sun’s rays and listen to the waves. But the popularity of the waterfront can mean high housing costs and consumer prices.

Luckily, for those willing to look past the likes of Malibu and Venice Beach, there are plenty of scenic spots along the country’s lakes and oceans where retirees can make a nice home even with a reduced income.

Here are the Best 10 Places to retire in the U.S. in 2026, where the median house costs around $220,000 or less, but the water views and coastal vibe are priceless.

1. Pensacola, Florida

One of the more affordable spots on the Florida coast is Pensacola, a city with about a half million residents. Located on the west end of the Florida panhandle, the city has plenty to keep retirees entertained. In addition to its miles of beautiful beaches, Pensacola is home to the National Naval Aviation Museum, the Blue Wahoos Ballpark, and Historic Pensacola Village.

The Pensacola Bay Bridge takes you to the Gulf Islands, with plenty of places to explore and enjoy the scenery and the weather.

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2. Duluth, Minnesota

For retirees who want the waterside but don’t want to relocate to the coasts, the Great Lakes might be just right. Duluth is a charming port city where residents and visitors watch ships pass through the Aerial Lift Bridge.

The coast of Lake Superior is rocky and surrounded by pine trees, providing spectacular scenery and fresh air. Duluth also boasts the Great Lakes Aquarium and Lake Superior Zoo, popular with grandchildren. Many parks and walking paths provide welcoming environments for seniors.

Winters in Duluth are best left to those accustomed to the full range of seasons, but an extensive network of skywalks makes it easier to remain active in the colder months.

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3. Coos Bay, Oregon

Seattle and Portland are popular cities that draw many retirees, but the cost of living there make them prohibitive on a fixed income. For stunning scenery at a more accessible price, look to Coos Bay. It’s a hilly city, and its bodies of water include Lake Merritt, the Upper Pony Creek Reservoir, and the Empire Lakes. The waterfront boasts a boardwalk, cycling trails and historical displays.

Not only does Coos Bay offer beautiful rocky shores, but it also has a notable history. The Marshfield District includes nationally registered places such as the Chandler Hotel, Egyptian Theatre and Tioga Hotel. Transportation fans can enjoy the Coos History Museum and Oregon Coast Historical Railway.

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4. Deerfield Beach, Florida

Just south of Boca Raton is the city of Deerfield Beach, Florida. With a population around 75,000, Deerfield Beach is a seaside spot with plenty to see and do. Deerfield Beach Island runs along the eastern edge of the city, separated from the mainland by a channel whose numerous inlets create substantial waterfront in many neighborhoods.

Fishing enthusiasts will enjoy Deerfield Beach International Fishing Pier, a 976-foot pier with all the supplies necessary for a day of fishing. Golf courses, tennis courts, and dining round out the city’s recreation options.

5. Ocean Springs, Mississippi

Mississippi boasts some of the lowest-cost living in the country, and in Ocean Springs you can get a lot of enjoyment for your money. This small town of about 17,000 offers attractions such as the Walter Anderson Museum of Art and Ocean Springs Beach.

Gulf Islands National Seashore has beautiful sandy coastline and the barrier islands can be reached from there by boat. Deer Island and others offer protection for Biloxi Bay. When fishing and boating and nature hikes are not enough to fill your days, Ocean Springs is within reach of a number of popular casinos.

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6. Eureka, California

The state of California has some of the best waterfront in the country—and some of the highest costs to match, especially in popular cities like San Francisco. But that doesn’t mean you have to cross the Sunshine State off your list.

Eureka, located about 250 miles northwest of Napa, is a port town of about 27,000. It is built along the protected waters of Humboldt Bay. The old, charming town of Eureka is replete with Victorian architecture, and its surroundings include old growth forests and a city marina.

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7. Aberdeen, Washington

Another gem in the Pacific Northwest is Aberdeen, Washington. Located at the Olympic Peninsula’s southern edge, at the junction of the Chehalis and Wishkah Rivers, it’s a great location for beachcombing, kayaking, birdwatching, and hiking in the forest.

The city is home to about 17,000, and with its rivers and bay you have a great opportunity to find a home near the water.

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8. Gulfport, Mississippi

Warm weather and beautiful Gulf Coast beaches are the big draws in Mississippi’s second-largest city. With a population around 70,000—and nearly 400,000 in the greater metro area, which includes Biloxi—it is a popular place for retirees.

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9. Freeport, Texas

Just south of Houston, Freeport, Texas combines affordable living with the great outdoors. Surfside Beach is a local favorite, and the Surfside Jetty at the county park is popular for fishing and birdwatching.

The city is home to about 12,000, and its lakes, lagoons, rivers and canals make it a great choice for retirees who love to be surrounded by water. Drivers will enjoy the Bluewater Highway, which stretches out along the coast all the way to Galveston with water on both sides and plenty of attractive stops along the way.

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10. Port Arthur, Texas

East of Houston, Texas is the waterside town of Port Arthur, Texas. Here Sabine Pass drains Sabine Lake into the Gulf of Mexico. Over 46 percent of the city’s area is covered in water. Museumgoers and history buffs will appreciate the Museum of the Gulf Coast and Sabine Pass Battleground State Historic Site.

There are many parks and wildlife refuges in the area, including McFaddin National Wildlife Refuge, Sea Rim State Park, JD Murphree Wildlife Management Area, Big Hill Bayou Wildlife Management Area, and Sabine National Wildlife Refuge.

You may have to look beyond the best-known retirement locations to find them, but these and other under-the-radar waterfront towns can make excellent destinations for retirees who want to enjoy their surroundings on a budget.

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FAQs about the Best Places in the USA to Retire on the Water for Less

1. What are the most important factors to weigh when picking a retirement city?

Retirees typically balance cost of living, housing and healthcare access, climate, taxes, safety, and amenities like arts, recreation, and walkability.​ Our HOMEiA framework also emphasizes how far your fixed income stretches and whether the community is truly age-friendly, not just marketed as “retirement-friendly” – a big difference!​

2. How do healthcare quality and access influence the “best place to retire”?

Cities anchored by major health systems, such as Rochester, MN (Mayo Clinic) or Madison, WI (UW Health), often rank well because they provide specialized care, short travel times to appointments, and multiple hospital choices.​ For many retirees, slightly higher housing costs can be justified if they significantly reduce medical travel and improve access to specialists and emergency care.​

3. Why do some of the best retirement cities show up repeatedly in rankings?

Places like Orlando, Huntsville, Boise, and Mesa frequently appear because they combine relatively affordable housing, reasonable taxes, attractive weather, diverse amenities, and highly-rated healthcare.​ These markets also tend to offer strong social infrastructure, such as country clubs, volunteer opportunities, and arts & cultural offerings that supports staying active and socially connected in retirement.​

4. How should retirees on Social Security or fixed incomes approach city choice?

For fixed-income retirees, the key is targeting metros where housing, healthcare, and everyday expenses sit well below the national average so that monthly Social Security checks can cover most monthly needs.​ HOMEiA’s “Retire on Social Security” list highlights mid-sized and smaller cities where you can realistically live on benefits alone or with modest supplemental savings.​

5. How do state-level taxes and policies affect which cities make sense?

States vary widely in how they tax Social Security, pensions, retirement accounts, and property; as a result, two cities in different states with similar housing costs can feel very different after taxes.​ Some top destinations sit in tax-friendly states (e.g., Florida, Texas, Wyoming), while others in higher-tax states might offset this with better human and social services as well as healthcare quality.​

6. What lifestyle questions should retirees ask beyond the HOMEiA data?

Beyond spreadsheets, retirees should consider proximity to family and friends, preferred climate (consistent vs. seasonal), political and cultural fit, and whether they want urban energy, suburban conveniences, or small-town quiet.​ Visiting potential cities off-season, exploring neighborhoods, and test-renting for a few months will usually reveal day-to-day reality better than rankings alone.​

7. How can someone narrow a long list of “best places to retire” to one or two serious candidates?

A practical approach is to start with objective filters, such as budget, healthcare access, and taxes, then create a short list of 5–8 cities that meet those thresholds.​ From there, compare HOMEiA Scores, national rankings, and personal visit impressions to choose one or two places where both the numbers and the lifestyle feel sustainable for the next 20–30 years.​