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Midwest Leads in 2026’s Top Retirement Housing Markets for Home Buyers

• By gsswpadmin


Scarlet Oak economic strategist and wealth manager Frances Newton assesses the state of the market and the Federal Reserve’s strategy on ‘Making Money.’

In 2026, an estimated 6.5 million Americans will retire. If you are among them, you may already be contemplating where to settle down and enjoy your golden years. Perhaps you’re even considering purchasing a home specifically for your retirement.

Before making such a significant decision, it’s essential to understand which housing markets are projected to thrive in 2026 and which ones may be out of reach financially. To identify the 20 best and 20 worst housing markets for retirees in 2026, GOBankingRates analyzed various markets using Zillow Research Data. This information was cross-referenced with household values and retirement income levels from the U.S. Census, allowing GOBankingRates to pinpoint the most favorable and least favorable housing markets for retirees.

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Key Findings for Best Markets

  • The Midwest shines: Cities in Illinois, Indiana, Michigan, Ohio, and Wisconsin account for 15 of the top 20 housing markets for retirees in 2026.
  • Ohio leads the pack: Ohio cities dominate the list with five entries, while Michigan follows closely with four cities.
  • Sandusky, Ohio, is a retiree hotspot: Approximately 32.9% of households in Sandusky receive retirement income, making it a prime location for retired homeowners.

1. Saginaw, Michigan

  • 1-year forecast of % change in home value: 4.9%
  • % of homes with retirement income: 32.9%
  • % of income required for new home: 22%
  • Income required to afford new home: $48,048
A "for sale" sign on a house in Philadelphia, Pennsylvania, on Friday, Aug. 16, 2024.

A “For Sale” sign on a house in Philadelphia, Pa., on Friday, Aug. 16, 2024.  (Joe Lamberti/Bloomberg via Getty Images / Getty Images)

2. Mansfield, Ohio

  • 1-year forecast of % change in home value: 0.11%
  • % of homes with retirement income: 4.5%
  • % of income required for new home: 20%
  • Income required to afford new home: $47,546

3. Kokomo, Indiana

  • 1-year forecast of % change in home value: 4.2%
  • % of homes with retirement income: 32.2%
  • % of income required for new home: 22%
  • Income required to afford new home: $49,883

HOUSING MARKET EXPECTED TO OFFER LITTLE RELIEF FOR BUYERS IN 2026 DESPITE MODEST IMPROVEMENTS AHEAD

4. Bay City, Michigan

  • 1-year forecast of % change in home value: 4.2%
  • % of homes with retirement income: 31.7%
  • % of income required for new home: 22%
  • Income required to afford new home: $49,692

5. Midland, Michigan

  • 1-year forecast of % change in home value: 4.3%
  • % of homes with retirement income: 33.9%
  • % of income required for new home: 23%
  • Income required to afford new home: $62,612

A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, Calif. The location ranked as one of the worst markets for retirees. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)

Key Findings for Worst Markets

  • California has the worst housing market: Specifically, San Jose is the least favorable market for retirees.
  • The Golden State dominates the bottom 20: California not only has the worst housing market for retirees but also accounts for 11 cities in the bottom 20.
  • Hawaii presents challenges as well: Hawaii, known for its high cost of living, includes two of the worst housing markets for retirees: Honolulu and Kahului.

1. San Jose, California

  • 1-year forecast of % change in home value: 0.8%
  • % of homes with retirement income: 18.9%
  • % of income required for new home: 62%
  • Income required to afford new home: $368,861

THESE 10 MARKETS MAY SEE THE BIGGEST HOMEBUYING SURGE AS MORTGAGE RATES FALL

2. San Francisco, California

  • 1-year forecast of % change in home value: -1.6%
  • % of homes with retirement income: 22.2%
  • % of income required for new home: 56%
  • Income required to afford new home: $268,428

3. Santa Cruz, California

  • 1-year forecast of % change in home value: 1.2%
  • % of homes with retirement income: 25.8%
  • % of income required for new home: 70%
  • Income required to afford new home: $266,158
Los Angeles city skyline during the day

Los Angeles city skyline during a sunny day with views of office buildings and neighborhoods. (Simonkr / Getty Images)

4. Los Angeles, California

  • 1-year forecast of % change in home value: 1.2%
  • % of homes with retirement income: 17.9%
  • % of income required for new home: 67%
  • Income required to afford new home: $226,556

5. Salinas, California

  • 1-year forecast of % change in home value: 0.4%
  • % of homes with retirement income: 22.4%
  • % of income required for new home: 61%
  • Income required to afford new home: $200,578

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Methodology: The New Homeowner Affordability, New Homeowner Income Needed, Zillow Home Value Forecast, and Zillow Home Value Index were sourced from Zillow Research Data for each housing market. Households with retirement income were sourced from the U.S. Census 2023 5-year ACS. The one-year home value forecast was scored and weighted at 1.00, the percent of homes that receive retirement income was scored and weighted at 1.00, the new homeowner affordability was scored and weighted at 1.00, and the new homeowner income needed was scored and weighted at 1.00. All data was sourced and tabulated Dec. 18, 2025.


Scarlet Oak economic strategist and wealth manager Frances Newton assesses the state of the market and the Federal Reserve’s strategy on ‘Making Money.’

In 2026, an estimated 6.5 million Americans will retire. If you are among them, you may already be contemplating where to settle down and enjoy your golden years. Perhaps you’re even considering purchasing a home specifically for your retirement.

Before making such a significant decision, it’s essential to understand which housing markets are projected to thrive in 2026 and which ones may be out of reach financially. To identify the 20 best and 20 worst housing markets for retirees in 2026, GOBankingRates analyzed various markets using Zillow Research Data. This information was cross-referenced with household values and retirement income levels from the U.S. Census, allowing GOBankingRates to pinpoint the most favorable and least favorable housing markets for retirees.

TRUMP ANNOUNCES PLANS TO BAN INSTITUTIONAL INVESTORS FROM BUYING SINGLE-FAMILY HOMES

Key Findings for Best Markets

  • The Midwest shines: Cities in Illinois, Indiana, Michigan, Ohio, and Wisconsin account for 15 of the top 20 housing markets for retirees in 2026.
  • Ohio leads the pack: Ohio cities dominate the list with five entries, while Michigan follows closely with four cities.
  • Sandusky, Ohio, is a retiree hotspot: Approximately 32.9% of households in Sandusky receive retirement income, making it a prime location for retired homeowners.

1. Saginaw, Michigan

  • 1-year forecast of % change in home value: 4.9%
  • % of homes with retirement income: 32.9%
  • % of income required for new home: 22%
  • Income required to afford new home: $48,048
A "for sale" sign on a house in Philadelphia, Pennsylvania, on Friday, Aug. 16, 2024.

A “For Sale” sign on a house in Philadelphia, Pa., on Friday, Aug. 16, 2024.  (Joe Lamberti/Bloomberg via Getty Images / Getty Images)

2. Mansfield, Ohio

  • 1-year forecast of % change in home value: 0.11%
  • % of homes with retirement income: 4.5%
  • % of income required for new home: 20%
  • Income required to afford new home: $47,546

3. Kokomo, Indiana

  • 1-year forecast of % change in home value: 4.2%
  • % of homes with retirement income: 32.2%
  • % of income required for new home: 22%
  • Income required to afford new home: $49,883

HOUSING MARKET EXPECTED TO OFFER LITTLE RELIEF FOR BUYERS IN 2026 DESPITE MODEST IMPROVEMENTS AHEAD

4. Bay City, Michigan

  • 1-year forecast of % change in home value: 4.2%
  • % of homes with retirement income: 31.7%
  • % of income required for new home: 22%
  • Income required to afford new home: $49,692

5. Midland, Michigan

  • 1-year forecast of % change in home value: 4.3%
  • % of homes with retirement income: 33.9%
  • % of income required for new home: 23%
  • Income required to afford new home: $62,612

A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, Calif. The location ranked as one of the worst markets for retirees. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)

Key Findings for Worst Markets

  • California has the worst housing market: Specifically, San Jose is the least favorable market for retirees.
  • The Golden State dominates the bottom 20: California not only has the worst housing market for retirees but also accounts for 11 cities in the bottom 20.
  • Hawaii presents challenges as well: Hawaii, known for its high cost of living, includes two of the worst housing markets for retirees: Honolulu and Kahului.

1. San Jose, California

  • 1-year forecast of % change in home value: 0.8%
  • % of homes with retirement income: 18.9%
  • % of income required for new home: 62%
  • Income required to afford new home: $368,861

THESE 10 MARKETS MAY SEE THE BIGGEST HOMEBUYING SURGE AS MORTGAGE RATES FALL

2. San Francisco, California

  • 1-year forecast of % change in home value: -1.6%
  • % of homes with retirement income: 22.2%
  • % of income required for new home: 56%
  • Income required to afford new home: $268,428

3. Santa Cruz, California

  • 1-year forecast of % change in home value: 1.2%
  • % of homes with retirement income: 25.8%
  • % of income required for new home: 70%
  • Income required to afford new home: $266,158
Los Angeles city skyline during the day

Los Angeles city skyline during a sunny day with views of office buildings and neighborhoods. (Simonkr / Getty Images)

4. Los Angeles, California

  • 1-year forecast of % change in home value: 1.2%
  • % of homes with retirement income: 17.9%
  • % of income required for new home: 67%
  • Income required to afford new home: $226,556

5. Salinas, California

  • 1-year forecast of % change in home value: 0.4%
  • % of homes with retirement income: 22.4%
  • % of income required for new home: 61%
  • Income required to afford new home: $200,578

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Methodology: The New Homeowner Affordability, New Homeowner Income Needed, Zillow Home Value Forecast, and Zillow Home Value Index were sourced from Zillow Research Data for each housing market. Households with retirement income were sourced from the U.S. Census 2023 5-year ACS. The one-year home value forecast was scored and weighted at 1.00, the percent of homes that receive retirement income was scored and weighted at 1.00, the new homeowner affordability was scored and weighted at 1.00, and the new homeowner income needed was scored and weighted at 1.00. All data was sourced and tabulated Dec. 18, 2025.