For decades, the retirement playbook looked the same: head south to Florida or Arizona. But a growing number of seniors are writing a different ending, one that involves a small coastal state most people drive straight through on the way to somewhere else.
Sussex County, in southern Delaware, has quietly become one of the hottest retirement destinations in the country. A new Bloomberg report found the county added 40,000 new residents since 2020, a growth rate of 17 percent. That is roughly five times the national average.
The Numbers Are Hard to Ignore
That surge has made Delaware the fastest-growing state in the country for residents 65 and older. The 65-plus population in Delaware has grown by 23 percent since 2020, a rate that tops all 50 states, according to the Bloomberg report.
Census estimates put the median age in Sussex County at 53.2 years. That is nearly 14 years above the national average, and five years higher than it was in 2015.
Why Delaware? The Taxes Tell a Big Part of the Story
For retirees coming from high-tax states in the Northeast, Delaware can feel like a breath of fresh air, financially speaking.
According to Tax Foundation data cited in the article, Delaware’s top income tax rate is 6.6 percent. There is no sales tax. Property taxes are generally lower than in New York, New Jersey, and Massachusetts. And there is no estate tax, which matters when you are thinking about what you leave behind.
Financial planner Brad Travis Jr., who grew up in the Sussex County area, told Bloomberg that some families moving from New Jersey have seen their property tax bills drop from around $18,000 a year to closer to $1,500. He has a name for them: property tax refugees.
Travis also noted the phenomenon feels familiar to anyone who has watched a small town change fast. As he put it, “Everybody wants to be the last person to move here.”
Lewes, Rehoboth Beach, and a Changing Region
Towns like Lewes and Rehoboth Beach have seen much of this growth. Rehoboth Beach is perhaps best known nationally as the location of a home owned by former President Joe Biden.
The newcomers tend to bring significant financial resources. IRS migration data from 2022 showed that families moving into the region had an average annual income of more than $136,000, compared to under $92,000 for longtime residents.
Growing Pains Are Real
All of that growth has come with a cost. The Bloomberg report found that healthcare, roads, schools, and local stores are all feeling the strain.
Schools are adding modular classrooms to keep up with growing student enrollment, a sign that younger families are arriving alongside the retirees.
The healthcare picture is perhaps the most sobering. Joe Pika, a 79-year-old former University of Delaware professor who moved to the area four years ago, told Bloomberg he waited nine months for a colonoscopy and 18 months for a dental appointment. He now drives 40 miles to see a dermatologist.
Pika said he counts himself among the residents who worry the county is growing faster than it can handle. According to him, there has been “an appalling lack of planning” for the challenges that have come with the boom.
Delaware’s coastline is beautiful, the taxes are genuinely favorable, and the appeal is easy to understand. But if you are thinking about making the move, it is worth knowing that the quiet beach town you have your eye on may already feel a bit less quiet than it used to.
