Market Insights for Upcoming Retirees
Frances Newton, an asset manager with Scarlet Oak, has been evaluating the current market landscape and the Federal Reserve’s approach to economic strategies.
In 2026, around 6.5 million Americans are expected to retire. If you’re among them, you might be thinking about where you want to settle down and enjoy those retirement years. It seems many are considering the idea of purchasing a home.
Before making any decisions, it’s wise to check which housing markets are likely to thrive and which ones may be out of reach financially by 2026. To identify the best and worst retirement housing markets for that year, GOBankingRates analyzed data from Zillow and combined it with U.S. Census statistics on household values and retirement incomes. This analysis led to a ranking of the top 20 housing markets favorable for retirees and the 20 that might be better to avoid.
Top Housing Markets for Retirees
- The Midwest leads the list, with 15 out of the top 20 retirement markets in cities from Illinois, Indiana, Michigan, Ohio, and Wisconsin.
- Ohio stands out, having five cities represented in the top 20—more than any other state, with Michigan following closely with four.
- Sandusky, Ohio, is particularly enticing for retirees; about 32.9% of households there receive retirement income, making it a hotspot for those looking to settle down.
1. Saginaw, Michigan
- Projected home value increase in one year: 4.9%
- Households with retirement income: 32.9%
- Income required for new home purchase: 22%
- Income needed to buy a new home: $48,048
2. Mansfield, Ohio
- Expected one-year home value increase: 0.11%
- Households with retirement income: 4.5%
- Percentage of income for purchasing a new home: 20%
- Required income: $47,546
3. Kokomo, Indiana
- Home value prediction for a year: 4.2% increase
- Retirement income households: 32.2%
- Income percentage for a new home: 22%
- Needed income to buy a new home: $49,883
Though a slight improvement in the housing market is anticipated, it seems the housing landscape in 2026 won’t offer much solace for buyers.
4. Bay City, Michigan
- Predicted home value change for the year: 4.2%
- Percentage of households with retirement income: 31.7%
- Income percentage required for a new home: 22%
- Income needed for purchase: $49,692
5. Midland, Michigan
- Projected one-year change in home value: 4.3%
- Percentage of retirement income households: 33.9%
- Percentage of income needed for new home: 23%
- Income needed: $62,612
Challenges in Less Favorable Markets
- California is particularly notorious for its unfavorable housing market, notably in San Jose.
- The state has the most cities within the least favorable 20 retirement markets for 2026, with a total of 11 cities.
- Hawaii poses its own challenges too, being known for high costs; both Honolulu and Kahului appear on the least desirable list for retirees.
1. San Jose, California
- Home value increase forecast for one year: 0.8%
- Households with retirement income: 18.9%
- Income percentage needed for new home: 62%
- Required income: $368,861
2. San Francisco, California
- Predicted home value change: -1.6%
- Retirement income households: 22.2%
- Percentage of income needed for a new house: 56%
- Income required for purchase: $268,428
3. Santa Cruz, California
- Expected home value change: 1.2%
- Percentage of households with retirement income: 25.8%
- Income percentage for a new home: 70%
- Income needed: $266,158
4. Los Angeles, California
- Predicted change in one year: 1.2%
- Retirement income households: 17.9%
- Percentage of income required for new home: 67%
- Income needed: $226,556
5. Salinas, California
- Home value change forecast: 0.4%
- Percentage of households with retirement income: 22.4%
- Income percentage needed for new homes: 61%
- Total required income: $200,578
In the realm of housing, it’s essential to keep these market trends in mind as you navigate your plans for retirement. Decision-making can be tough, but being informed is a step in the right direction.
