If your housing costs feel heavier than they used to, you are in very good company. A record 12.5 million senior households are now spending at least 30% of their income on housing. That is a big chunk of a fixed income and it is getting bigger.
According to Bankrate, the total cost of maintaining a home — including taxes, insurance, and upkeep — adds up to around $21,400 a year. That number stings when you are living on Social Security or a pension.
And where you live makes a real difference. Some states are far kinder to your wallet than others. Here is what CareScout found when they looked at housing costs for seniors across the country.
The States That Cost Seniors the Most
California tops the list of the hardest states for seniors. The median home price there sits at around $775,000, according to Zillow. That is more than double the national average of about $370,000.
But the purchase price is just the beginning. California also carries high real estate taxes, adding even more pressure on seniors whether they own or rent.
The five most expensive states for senior housing are:
- California
- Massachusetts
- Connecticut
- Hawaii
- New Jersey
Hawaii brings its own unique burden, it has the highest average monthly electricity bill of any state in the country. New Jersey leads the nation in median real estate taxes, with homeowners there paying a median bill of $9,358 a year. Second-place New Hampshire comes in nearly $3,000 less.
Renters in these states face even steeper odds. Across the country, 56.9% of senior renters spend at least 30% of their income on housing, compared to 26.9% of senior homeowners. Renting in an expensive state can push that burden even higher.
The States Where Your Money Goes Further
West Virginia comes out on top as the most affordable state for senior housing. It has the lowest real estate taxes in the country, the median annual tax bill there is just $881. Only 10.2% of West Virginia homeowners pay $2,000 or more a year in home insurance, the lowest rate of any state.
The five most affordable states for senior housing are:
- West Virginia
- Arkansas
- North Dakota
- Iowa
- South Dakota
Other Costs Worth Watching
Home insurance is becoming a serious line item. According to LendingTree, insurance premiums rose 40.4% between 2019 and 2024 and 11.4% of that increase happened in 2024 alone.
Colorado and Florida lead the nation in high insurance costs. According to U.S. Census Bureau data, 54.9% of Colorado homeowners pay at least $2,000 a year in home insurance. In Florida, that number is 53%.
For seniors who are considering assisted living, the cost gap between states is striking. Hawaii is the most expensive state for assisted living, with an average annual cost of $145,155, according to CareScout. Mississippi is the most affordable at $52,425 a year.
The bottom line: where you choose to live in retirement is one of the biggest financial decisions you can make. The difference between the most and least expensive states can add up to tens of thousands of dollars a year, money that stays in your pocket or disappears into housing costs.