An estimated 6.5 million Americans will retire in 2026. Are you one of them? If so, you’ve likely already begun to consider where you might settle down and spend your golden years. You might even be considering buying a home just for your retirement.
Before you make that leap, it’s good to know which housing markets are expected to be strong in 2026 and which are expected to be unaffordable. To determine the 20 best and 20 worst housing markets for retirees in 2026, GOBankingRates sourced various markets from Zillow Research Data and cross-referenced that information with household values and retirement income levels from the U.S. Census. From that matrix, GOBankingRates was able to locate the 20 best housing markets for retirees in 2026 — and the 20 housing markets you should avoid in your 2026 retirement.
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Key Findings for Best Markets
- The Midwest fills the top 20: Cities in Illinois, Indiana, Michigan, Ohio and Wisconsin are home to 15 of the 20 best housing markets for retirees in 2026.
- Ohio dominates the market: Ohio cities appear more than any other state’s cities in the top 20 with five entries (Michigan comes in second with four cities).
- Retirees are gathering in Sandusky, Ohio: Approximately 32.9% of households in Sandusky receive retirement income — more than any other city in the top 20. That makes Sandusky a boomtown 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
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
Key Findings for Worst Markets
- California has the worst housing market: California has the housing market that is least friendly to retirees — specifically, San Jose.
- The Golden State dominates the bottom 20: Not only does California have the worst housing market for retirees in 2026, but its cities make up the majority of the bottom 20 markets, with 11 cities total.
- Hawaii also makes for rocky retirement: Hawaii — frequently ranked as one of the most expensive states in America — has two of 2026’s 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
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
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 was 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.
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