Texas, a state synonymous with vast landscapes and a vibrant cultural tapestry, offers an unparalleled retirement experience. With its warm climate, diverse communities, and absence of state income tax, Texas is a magnet for retirees seeking both adventure and tranquility. This guide delves into the top 10 budget-friendly retirement destinations in the Lone Star State, ensuring your retirement years are as enriching as they are economically feasible.
10 Best Places to Retire in Texas on a Budget
- Why Retire in Texas on a Budget?
- Criteria for Our Selection
- Top 10 Affordable Retirement Destinations in Texas
- Making the Most of Your Retirement in Texas
- Final Thoughts
Why Retire in Texas on a Budget?
Texas stands out as an attractive retirement destination, boasting a warm climate, diverse landscapes, and friendly communities.
Retiring in Texas brings financial perks such as a low cost of living in select areas, affordable housing options, and a tax-friendly environment for retirees. The state’s absence of income tax and affordable living options make it particularly appealing.
Beyond finances, Texas dazzles with its cultural richness and ample recreational opportunities, from historic sites to expansive natural parks, promising a fulfilling retirement.
Not sure if Texas is the right place for your retirement? Take a look at our guide to the pros and cons of retiring in Texas.
Criteria for Our Selection
Our selection of these ten cities in Texas is not merely a list of the cheapest places to retire in the state. Instead, it is a carefully curated collection that represents exceptional value for retirees.
We’ve chosen these locations based on a combination of affordability, accessibility to healthcare, safety, community engagement, and the availability of amenities and activities that are particularly appealing to retirees. These factors are critical to ensuring that each destination doesn’t just meet financial criteria but also significantly enhances your retirement lifestyle, providing a well-rounded, fulfilling experience in your golden years.
Top 10 Affordable Retirement Destinations in Texas
10. McAllen
- Cost of Living Score: 76.5 (23.5% lower than the national average)
- Population (2024): 146,763
- Median Listing Prices: $277,000 – $349,900 (depending on zip code)
- Top choice for: a thriving cultural hub in the Rio Grande Valley
McAllen is a lively city in the Rio Grande Valley that offers retirees a warm climate and a rich blend of cultural experiences. Known for its affordability and friendly community, McAllen is a popular destination for those seeking a relaxed lifestyle with plenty of amenities.
The city features a variety of shopping centers, restaurants, and parks, making it convenient and enjoyable for daily living. McAllen also boasts a lively arts scene, with numerous galleries, theaters, and museums, including the International Museum of Art & Science, which provides educational and cultural enrichment.
Outdoor enthusiasts will appreciate McAllen’s many green spaces, such as Quinta Mazatlan, a birding center set within a historic Spanish Revival mansion, offering nature trails and environmental programs. With its mix of leisure activities, cultural offerings, and community-focused events, McAllen provides a fulfilling and comfortable environment for retirees.
9. Waco
- Cost of Living Score: 83.4 (16.6% lower than the national average)
- Population (2024): 147,434
- Median Listing Prices: $185,000 – $499,900 (depending on zip code)
- Top choice for: quintessential Texas living with modern comforts
Waco offers a unique blend of historical charm and modern amenities, making it an attractive destination for retirees. Situated along the Brazos River, the city is perhaps best known for the Magnolia Market at the Silos, a shopping and dining complex popularized by HGTV’s “Fixer Upper” stars Chip and Joanna Gaines.
Waco’s rich cultural scene includes the Dr. Pepper Museum, celebrating the locally invented soft drink, and the Texas Ranger Hall of Fame and Museum, which honors the iconic law enforcement agency. The city also offers educational opportunities through its affiliation with Baylor University, providing a youthful energy and plenty of excitement on gamedays.
For outdoor enthusiasts, Cameron Park provides extensive trails and scenic spots along the river, ideal for hiking, biking, and picnics. Waco’s downtown area has undergone significant revitalization, featuring new shops, restaurants, and entertainment options that contribute to the city’s lively community feel.
With its combination of cultural heritage, recreational opportunities, and revitalized downtown, Waco is a compelling choice for retirees looking for a dynamic community in the heart of Texas.
8. Killeen
- Cost of Living Score: 83.7 (16.3% lower than the national average)
- Population (2024): 164,618
- Median Listing Prices: $159,900 – $293,950 (depending on zip code)
- Top choice for: wide open spaces while staying close to Austin
Killeen, positioned in the heart of the state, offers retirees an appealing blend of affordable living and convenient access to the city of Austin, just an hour’s drive away. Known primarily as a military town due to its close relationship with the neighboring Fort Hood, Killeen provides a supportive and diverse community atmosphere.
The city caters to outdoor enthusiasts with numerous parks and recreational areas, such as the Chalk Ridge Falls Park, where residents can enjoy walking trails, fishing, and scenic views. Killeen also boasts a variety of local shopping and dining options that contribute to its suburban charm.
7. Texas City
- Cost of Living Score: 95.8 (4.2% lower than the national average)
- Population (2024): 59,063
- Median Listing Prices: $249,500 – $286,990 (depending on zip code)
- Top choice for: budget-friendly living on the Gulf Coast
Texas City offers retirees a unique coastal living experience on the Gulf Coast with the convenience of being close to the urban centers of Houston and Galveston (a 45-minute and 19-minute drive respectively). This city is known for its bustling port and historical significance in the petroleum industry, providing a backdrop of both economic vitality and rich local history.
Residents enjoy access to several scenic spots like the Texas City Dike, one of the longest fishing piers in the world, ideal for fishing, boating, and bird-watching. This unique man-made pier extends 5.3 miles into Galveston Bay. The city also boasts beautiful parks and nature reserves, such as the Bay Street Park, which offers walking trails and picnic areas.
Texas City’s community is tight-knit, with local events such as the annual Texas City Music Fest by the Bay bringing residents together. With its blend of coastal beauty, historical points of interest, and proximity to larger cities, Texas City is an attractive option for retirees looking for a quiet yet engaging environment by the sea.
6. Midland
- Cost of Living Score: 92.2 (7.8% higher than the national average)
- Population (2024): 136,012
- Median Listing Prices: $230,000 – $604,950 (depending on zip code)
- Top choice for: grit meets luxury in the Heartland
Midland offers retirees an active lifestyle with a blend of Texan culture and modern amenities. Known for its economic prosperity driven by the oil industry, Midland also boasts significant cultural sites, including the childhood home of George W. Bush, adding a historical dimension to the city. The community’s character is aptly described on Midland’s tourism website as “the convergence of grit and luxury,” highlighting the unique combination of its robust energy sector and upscale cultural offerings.
The city provides a variety of recreational activities, with facilities like the Bush Tennis Center offering opportunities for tennis and pickleball enthusiasts. Midland’s vibrant arts scene is showcased through venues like the Wagner Noël Performing Arts Center, which hosts a range of performances that enhance the cultural fabric of the community.
With its rich mix of history, culture, and recreation, Midland presents a compelling option for retirees seeking an interesting and comfortable lifestyle in Texas.
5. El Paso
- Cost of Living Score: 81.9 (18.1% lower than the national average)
- Population (2024): 675,872
- Median Listing Prices: $115,000 – $625,000 (depending on zip code)
- Top choice for: cost-effective living with Mexican flair
El Paso, located on the western tip of the state and bordering Mexico, offers retirees a unique cultural blend and a sunny, mild climate ideal for year-round outdoor activities. This city is rich in history and culture, featuring landmarks like the Mission Trail, which showcases some of the oldest Spanish missions in the United States.
El Paso’s downtown area is full of walkable plazas and revitalized with shops, restaurants, and cultural centers, including the Plaza Theatre, a beautifully restored historic venue that hosts various performances and events. The city is known for its friendly community and diverse culinary scene, particularly its authentic Mexican cuisine.
For outdoor enthusiasts, El Paso provides numerous parks and recreational areas, such as Franklin Mountains State Park, which offers extensive trails for hiking, biking, and scenic drives.
4. Marshall
- Cost of Living Score: 77.8 (22.2% lower than the national average)
- Population (2024): 23,936
- Median Listing Prices: $169,250 – $324,950 (depending on zip code)
- Top choice for: small town charm and a tight-knit community
Marshall, known for its deep historical roots and charming architecture, offers retirees a quaint and culturally rich environment. Situated in East Texas, this small city is celebrated for its beautifully preserved historic downtown, which features a blend of antique shops, local eateries, and cultural venues that highlight its Southern heritage.
Marshall hosts a variety of events throughout the year that showcase its vibrant community spirit, including the famous Wonderland of Lights—a festive display that transforms the town into a Hallmark movie come to life. The city also places a strong emphasis on arts and education, housing institutions such as the Marshall Visual Arts Center and offering various cultural activities.
For those who enjoy a leisurely outdoor lifestyle, Marshall provides several parks and walking trails, as well as proximity to larger natural areas for more extensive exploration. With its combination of historical significance, community engagement, and peaceful living, Marshall is an attractive option for retirees looking for a slower-paced lifestyle enriched with cultural experiences.
3. Lufkin
- Cost of Living Score: 78 (22% lower than the national average)
- Population (2024): 34,233
- Median Listing Prices: $289,000 – $299,999 (depending on zip code)
- Top choice for: worrying less and fishing more
Lufkin, nestled in the heart of the Piney Woods and steeped in its heritage as a railroad town, offers a peaceful retreat for retirees looking to enjoy the great outdoors. This quiet town serves as a gateway to the vast wilderness of East Texas, providing countless opportunities for boating and fishing. Nearby, the expansive Sam Rayburn Reservoir and the serene Angelina River are perfect spots for anglers and those who simply enjoy being on the water.
Residents relish the tranquility and the affordable lifestyle Lufkin offers, allowing them to spend their days leisurely fishing or exploring nature without financial worry (cost of living here is a cool 22% lower than the national average). With its rich history, access to untouched natural landscapes, and low cost of living, Lufkin is an ideal destination for retirees eager to embrace a quiet, water-centric lifestyle in their later years.
2. Amarillo
- Cost of Living Score: 73.6 (26.4% lower than the national average)
- Population (2024): 202,075
- Median Listing Prices: $130,000 – $452,900 (depending on zip code)
- Top choice for: desert sunsets and cowboy spirit
Amarillo, located in the Texas Panhandle, epitomizes the spirit of the West. Make no mistake, you’re in cowboy country here, surrounded by a landscape rich in Western heritage and natural beauty. Known for iconic Route 66 landmarks and the breathtaking Palo Duro Canyon State Park, Amarillo offers a picturesque and adventurous setting for retirees.
The city boasts extensive opportunities for outdoor recreation, especially in Palo Duro Canyon, where hiking, biking, horseback riding, and capturing stunning vistas are everyday activities. Amarillo also celebrates its cowboy roots through museums like the American Quarter Horse Hall of Fame & Museum and the Panhandle-Plains Historical Museum, which explore the region’s deep connections to ranching and cowboy culture.
With its affordable cost of living and laid-back lifestyle, Amarillo is an appealing destination for retirees who cherish the great outdoors and want to immerse themselves in a community that embodies the true Texas spirit. The city’s wide-open spaces and vibrant sunsets only enhance its appeal, offering a tranquil yet spirited environment perfect for those looking to enjoy their retirement years in authentic cowboy country.
1. San Antonio
- Cost of Living Score: 91.3 (8.7% higher than the national average)
- Population (2024): 1,506,593
- Median Listing Prices: $180,000 – $1,098,999 (depending on zip code)
- Top choice for: urban amenities without the expense
San Antonio, renowned for its rich colonial heritage and vibrant multicultural community, offers a lively and picturesque setting for retirees. The city is steeped in history, most famously illustrated by the Alamo and the beautifully preserved Spanish missions that dot its landscape.
The heart of San Antonio is the River Walk, a network of walkways along the banks of the San Antonio River, lined with bars, shops, restaurants, nature, and public art, providing an engaging atmosphere for both residents and visitors. This bustling promenade hosts numerous cultural events throughout the year, including the famous Fiesta San Antonio, a festival that celebrates the city’s diverse heritage with parades, food, and music.
Beyond its cultural attractions, San Antonio boasts a warm climate and a cost of living that remains relatively low compared to other major U.S. cities, making it an attractive option for retirees. The city offers extensive healthcare facilities and a variety of recreational activities, from golf courses to major league sports, ensuring that residents can enjoy a vibrant, active lifestyle.
Making the Most of Your Retirement in Texas
To maximize your retirement experience in Texas, engage in local community events, explore the state’s diverse landscapes, and partake in its cultural offerings. Texas not only provides a beautiful backdrop for retirement but also a wealth of experiences to enhance your quality of life.
Should you choose to retire in one of Texas’ affordable, charming small towns, venturing out into the broader state can greatly enrich your experience. A bit of travel can introduce you to the rich history, varied culinary scenes, and the breathtaking natural beauty scattered across the vast Texan landscape, ensuring there’s always something new to discover just a road trip away.
Final Thoughts
Retiring in Texas means enjoying a blend of affordable living, rich cultural life, and diverse communities. With its array of budget-friendly cities and towns, Texas stands as an attractive destination for retirees seeking a high-quality, yet cost-effective retirement lifestyle.
If you’re considering retiring in Texas but are looking for affordable options, you might also want to explore similarly budget-friendly retirement spots in Alabama, Colorado, and Florida. These states offer attractive alternatives that can fit well within your budget.
Median listing price data provided courtesy of realtor.com
All population data is courtesy of World Population Review
Cost of living score provided courtesy of BestPlaces.net
