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Monument Terrace in Lynchburg, Virginia, one of Investopedia’s best places to retire in the South.
Credit: SeanPavonePhoto / Getty Images Key Takeaways
Southern cities offer retirees a mix of affordability, warmer climates, and access to healthcare across a wide range of lifestyles.
Texas stands out due to no state income tax and a large number of affordable, growing cities.
Drawbacks of retiring in the South can include higher property taxes and a lack of public transportation.
Retiring in the South offers many practical advantages, including lower housing costs than many coastal markets, milder winters that reduce seasonal disruptions, and state tax structures that can be favorable to retirees. In places such as Texas and Tennessee, the lack of a state income tax can drastically change one’s financial profile for the better, while smaller cities across the region still offer access to healthcare and everyday services without big-city pricing.
This list draws from locations featured in Investopedia’s 100 Best U.S. Cities for retirees in 2026, focusing on southern cities where the above-mentioned advantages show up. From the coastal towns of Delaware to the fast-growing, lower-cost metros of South Texas, and the midsized cities of Tennessee and Virginia, the region offers a mix of locations where retirees can find a healthy balance of cost, access, and day-to-day livability.
Specifically, Investopedia’s southern data set includes Alabama, Arizona, Arkansas, Delaware, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Washington, D.C. Florida has been separated into its own region that has many great places for Americans to consider as a retirement destination.
Delaware 
Homes line the shores of Rehoboth Beach.
Credit: brandonhirtphoto / Getty Images
Lewes
Rehoboth Beach
Wilmington
Tennessee Credit: Crystal Bolin Photography / Getty Images
Johnson City
Kingsport
Knoxville
Nashville
Paris
Texas Route 66, which runs through Amarillo, Texas, turns 100 in 2026.
Credit: HABesen / Getty Images
Amarillo
Baytown
Carrollton
Eagle Pass
Edinburg
Grand Prairie
Houston
Katy
Longview
McAllen
Mission
Pasadena
Pharr
Spring
Virginia Roanoke is a city in the Blue Ridge Mountains of southwest Virginia.
Credit: Tasha Lackey / Getty Images
Lynchburg
Roanoke
Winchester
Financial Benefits for Retiring in the South
Retiring in the South provides people with a structural cost difference. Compared to cities in the Northeast or along the West Coast, housing prices across many southern markets are lower, even in established, growing areas. That’s reflected in places like Kingsport or Knoxville in Tennessee, where overall living costs, from utilities to everyday services, tend to be lower than in many northern cities, such as Scranton, Pennsylvania, even when housing is comparable.
Texas stands out for a few reasons. First, it has no state income tax, which means no tax on Social Security benefits, retirement withdrawals from accounts such as 401(k)s, or pensions. This increases the financial cushion dramatically for retirees.
But in addition, it offers the same relative affordability in other southern areas, but at scale. Cities like Edinburg, McAllen, and Pharr in the Rio Grande Valley are consistently among the lowest-cost markets in the country. Cities like Carrollton and Katy provide proximity to larger metros without the same price jump.
Potential Drawbacks of Retiring in the South
Retiring in the South also comes with some potential drawbacks that retirees should consider before making a move. While states like Texas have no income tax, a lot of that is offset by higher property taxes, with Texas having the highest property taxes of any state in the South and the seventh-highest in the nation.
Additionally, daily life in southern cities often revolves around driving, which may not be suitable for retirees who don’t want to or are not able to drive. Even larger metro areas, like Houston, have public transport, but it’s not comprehensive, making driving the default means of transportation.
Healthcare is another consideration for retirees. While some locations like Nashville and Houston have major hospital networks, places like Paris, Tennessee, or Eagle Pass, Texas, may require travel for more advanced treatments.
The Bottom Line
The South offers retirees plenty of variety, from coastal towns to growing inland cities, all with generally affordable cost structures, especially when compared to the national average. For retirees looking to strengthen their financial position while being close to healthcare and everyday conveniences, this region has many options to choose from.
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