There’s a new “Best Place to Retire” in the U.S. according to U.S. News & World Report. Lancaster, Pa., moved up four spots to secure the No. 1 spot in the new rankings, released today.
Lancaster, the county seat of Lancaster County in southern Pennsylvania, moved up due to its scores on health care for seniors, retiree tax rates and overall happiness of its residents.
Affordable housing seems to be a top reason why cities in Pennsylvania and Florida once again dominate the U.S. News latest annual rankings of the Best Places to Retire.
The new rankings for 2022-2023 feature a top five consisting of places located entirely in Pennsylvania and Florida for third year in a row—and more than two-thirds (68%) of metro areas in the top 25 are located in those two states. Only one city outside of Florida and Pennsylvania cracked the top 10.
Harrisburg, Pa., rose 11 positions to the No. 2 spot, and Pensacola, Fla., rose seven positions to No. 3. Tampa moved up two positions to No. 4 and York, Pa., saw the largest jump to a top five position, rising 12 positions to No. 5.
This year’s list evaluated the country’s 150 most populous metropolitan areas based on how well they meet Americans’ expectations for retirement, with measures including housing affordability, health care, desirability, retiree taxes, job market ratings and overall happiness—resulting in four new areas in the top five. This year, housing affordability is most heavily weighted out of the six factors.
“The drastic shift in the housing market, high inflation and concerns of a pending recession have retirees weighing housing affordability more heavily when considering where to retire,” said Emily Brandon, U.S. News senior editor for retirement. “Additionally, with COVID still a concern and access to good, affordable health care being of importance to retirees, Pennsylvania dominated the Best Places to Retire ranking’s top positions, taking five of the top 10 spots on the list.”
U.S. News says Florida remains a highly desired location for retirees overall, with several areas placing high in the rankings and a total of nine appearances in the top 25. But the 2022-2023 ranking’s emphasis on housing affordability, retiree taxes and overall happiness gave way for Fort Wayne, Ind., to soar 43 spots to No. 15. Other notable top 25 increases include Youngstown, Ohio moving up 38 positions to No. 21, and Toledo, Ohio rising 30 positions to No. 23.
“With fixed-rate mortgage rates more than doubling over the past year, it stands to reason that falling affordability would lead to changes in the rankings of the Best Places to Retire,” said Patrick S. Duffy, real estate economist. “As long as both rates and home prices are high, indexes related to things like happiness or health care quality, while important, will take a back seat to affordability. For those lucky buyers able to purchase with cash, as investors, they should still be mindful of housing values adjusting lower to compensate for rising mortgage rates.”
The six measures factored into this year’s rankings were weighted based on a public survey of individuals across the U.S. who are nearing retirement age (ages 45-59) and those who are of retirement age (60 or older) to find out what matters most when considering where to retire. Data sources include the U.S. Census Bureau, the Federal Bureau of Investigation, the Bureau of Labor Statistics and Sharecare, as well as U.S. News Best Hospitals rankings.
More from the rankings
• Sarasota, Fla., which held the top spot in the rankings for the past two years, fell all the way out of the top 10 to No. 11.
• Even with the adjusted weight for Housing Affordability and a decreased Job Market score, New York City jumped 18 places to emerge at No. 14 this year. New York scored highly on Happiness and Health Care, and increased in Desirability and Retiree Taxes scores.
• Aside from those in Florida, Asheville, N.C. was the only southeastern metro area to rank in the top 25 this year. Asheville increased in Happiness and Retiree Taxes but saw decreases in Job Market, Desirability, Health Care and Housing Affordability.
• The Pacific Northwest emerged in the top 25 this year with Eugene, Ore., ranking No. 25. The eight-spot jump was due to increases in Happiness and Retiree Taxes scores. Even with a slight decrease in Desirability, Eugene still scored highly in this category.
• Three Midwestern states were represented in the top 25 this year: Ann Arbor, Mich., rose one place to No. 9, while Fort Wayne skyrocketed 43 spots to No. 15. Both places had increases in Happiness, Retiree Taxes and Housing Affordability scores.
Top 10 “Best Places to Retire” for 2022-23
1. Lancaster, PA
2. Harrisburg, PA
3. Pensacola, FL
4. Tampa, FL
5. York, PA
6. Naples, FL
7. Daytona Beach, FL
8. Ann Arbor, MI
9. Allentown, PA
10. Reading, PA
See the full rankings here.
SEE ALSO:
• 3 Takeaways from Forbes ‘Best Places to Retire in 2022’
• ‘Best Places to Retire’ Rankings Dominated by Two States