In terms of affordability, specifically, the weighting was impacted by factors like adjusted cost of living, tax friendliness, inheritance tax, cost of health care and more.
Unsurprisingly, the Northeast was prominently featured among the least affordable states, with New York leading the way. One surprise in the rankings was California; despite being home to notoriously expensive cities like Los Angeles and San Francisco, the Golden State came in as "just" the 18th most expensive place to retire.
The Most Expensive Places to Retire
These are the top 10 most expensive places to retire, according to WalletHub's report:
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New York
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New Jersey
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Vermont
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Massachusetts
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Maryland
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Washington
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Connecticut
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Maine
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Illinois
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Oregon
It's clear to see why so many people have been leaving these areas and looking for more affordable markets (that also happen to have more favorable weather year round). That demographic shift and relative affordability are big reasons why we're focusing on the Sun Belt & other high growth regions in the deal flow for our new Multifamily Fund.
Cost of Living Considerations
The report also looks at how far retirees can go on a $1 million. nest egg. In New York, they project it would last just 14 years, a fraction of how long you'd typically expect retirement to last. Some studies find that, in order to live comfortably in New York City, you'd need $4 million dollars in retirement savings.
Cost of living is just one factor people will consider when deciding where to spend their golden years.
For many people, proximity to family and friends is a big factor when considering a move. Also, if you value the lifestyle these markets offer you may not be able to find a similar feel anywhere else.
The easy accessibility to world class food, culture, sporting events and other amenities in places like Boston and New York would be tough to replicate. Further, the proximity to world class medical facilities is something to consider as you age. Not coincidentally, the most expensive markets tended to score very highly in the quality of life and healthcare categories.
Retirement is different for everyone, of course. The most important thing to determine is what matters most to you in retirement and define your goals. That will help you be prepared emotionally and financially to maintain your desired lifestyle, even if it's in one of the United State's most expensive markets.
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
