Top 10 Best Places To Live In Delaware

If you’re looking to move to Delaware – or are just a curious Delawarean – it’s good to know how the state’s locations rank against each other. That’s why we built this list of the best places to live in Delaware, considering well-being, desirability, crime, unemployment rate and other statistics. Check out what Delaware has to offer.

Why Consider One Of The Best Cities To Live In Delaware?

There are many reasons to buy a house and live in Delaware. Many people flock to the state for its charming small towns and beaches along the Atlantic Ocean and Delaware Bay.  But one perk many people may not know about is that the state has one of the lowest tax burdens in the nation. That’s because the state does not assess any property tax, nor does it charge sales tax.

Along with its natural appeal and lax taxation, Delaware offers a fairly mild climate year-round. The southern parts of the state exhibit a more southern culture, whereas the populated northern part of the state (around Wilmington) has more in common with Philadelphia. For the second smallest state by land area, Delaware offers a variety of culture.

Top 10 Best Places To Live In Delaware

We chose the 10 best places to live in Delaware with a strict methodology (the specifics are laid out at the end of the article). We weighed crime, unemployment rate, desirability and citizens’ well-being, among other factors, to calculate the best places to live in Delaware. What follows are some of the best cities, towns and places to live if you’re moving to Delaware.

1. Lewes, DE

• Population: 3,257
• Median household income: $78,125
• Median home sale price: $750,000
• Median monthly rental price: $1,290
• Housing cost-to-income ratio: 32.5
• Home affordability index: 0.49

Located on the southern end of Delaware Bay, Lewes has the second lowest unemployment rate in the state and ranks high in desirability. That makes it our top pick for the best places to live in Delaware. While it’s known primarily as a vacation and resort spot for residents of nearby Baltimore and Washington, D.C., Lewes is a great place to live.

Check out homes for sale in Lewes and the Lewes Market Trend Report.

2. Bridgeville, DE

• Population: 2,499
• Median household income: $53,276
• Median home sale price: $381,950
• Median monthly rental price: $760
• Housing cost-to-income ratio: 32.7
• Home affordability index: 0.66

Named after a nearby bridge built in 1730, Bridgeville is one of the oldest towns in Sussex County, located in southern Delaware. In 2020, it had a population of 2,568, growing over 25% from 2010. The town is a popular spot for retirees and families, with good schools, plenty of area restaurants and quiet living on the Delmarva Peninsula.

Check out homes for sale in Bridgeville and the Bridgeville Market Trend Report.

3. Ocean View, DE

• Population: 2,556
• Median household income: $80,225
• Median home sale price: $560,000
• Median monthly rental price: $1,715
• Housing cost-to-income ratio: 30.7
• Home affordability index: 0.68

Beautiful Ocean View is another southern Delaware city high on our list. It ranks third lowest in the state for unemployment and violent crime, giving it a leg up on the competition. This small, bedroom community is just a couple short miles west of the Atlantic Ocean and one mile south of the Indian River Bay. The nearby Bethany Beach is a popular resort town, with Ocean View being the residence of many of its workers. At a population of just over 2,500, Ocean View is a great spot to raise a family or retire.

Check out homes for sale in Ocean View and the Ocean View Market Trend Report.

4. Felton, DE

• Population: 1,144
• Median household income: $55,833
• Median home sale price: $300,000
• Median monthly rental price: $782
• Housing cost-to-income ratio: 25.6
• Home affordability index: 0.88

Felton is a town of a little over 1,100 people, southwest of Delaware’s capital, Dover. But don’t let Felton’s size fool you – it’s part of a metropolitan area of over 150,000. The town is a popular place for families, with 22% of its population under the age of 19. With shops and restaurants a quick shot away up US-13, you can have the small-town feel of Felton with bigger city amenities nearby.

Check out homes for sale in Felton and the Felton Market Trend Report.

5. Selbyville, DE

• Population: 2,806
• Median household income: $77,974
• Median home sale price: $374,450
• Median monthly rental price: $1,000
• Housing cost-to-income ratio: 22.0
• Home affordability index: 0.98

Selbyville is another southern Delaware town to make our Best Places to Live in Delaware list. With a population of 2,878, Selbyville shares a border with Maryland to the south. It’s not near any large cities, but with its seclusion comes a large amount of natural beauty. The nearby Delaware Botanic Gardens at Pepper Creek and the Barn Hill Preserve of Delaware offer great views and fun wildlife attractions.

Check out homes for sale in Selbyville and the Selbyville Market Trend Report.

6. Clayton, DE

• Population: 3,845
• Median household income: $91,346
• Median home sale price: $380,000
• Median monthly rental price: $1,371
• Housing cost-to-income ratio: 23.9
• Home affordability index: 1.14

Clayton scores the sixth spot on this list as it has the third lowest property crime in the state. This small town is located in both Kent and New Castle counties and is part of the larger Dover metropolitan area. It’s located near the center of the state, about equidistant from Maryland as it is the Delaware Bay. The town has seen recent growth with many new housing developments. Nearby Smyrna, Delaware, has several restaurants and shops to visit when you want to leave the quiet of Clayton.

Check out homes for sale in Clayton and the Clayton Market Trend Report.

7. Townsend, DE

• Population: 2,671
• Median household income: $142,115
• Median home sale price: $390,000
• Median monthly rental price: $857
• Housing cost-to-income ratio: 19.8
• Home affordability index: 1.72

Located in New Castle County, Townsend makes our list at number seven. It ties with Newark and North Star as the top place in the state for well-being. At around a half-hour drive from Wilmington, Townsend makes for a quick commute to Delaware’s largest city. This explains the increase in new housing developments, leading to a lot of growth in the area. Nearby Middletown offers places to eat and drink, as well as natural attractions, like the Augustine Wildlife Area.

Check out homes for sale in Townsend and the Townsend Market Trend Report.

8. Milton, DE

• Population: 3,224
• Median household income: $59,531
• Median home sale price: $340,000
• Median monthly rental price: $1,146
• Housing cost-to-income ratio: 29.5
• Home affordability index: 0.83

Located along the Broadkill River, Milton is a small town in Sussex County, a short drive from the Prime Hook National Wildlife Refuge and Prime Hook Beach. The town is home to the renowned Dogfish Head Brewery, whose award-winning craft beers bring many tourists and beer fans in. The town ranks fourth in the state for desirability, with many people searching the area for a place to live or vacation.

Check out homes for sale in Milton and the Milton Market Trend Report.

9. Newark, DE

• Population: 31,393
• Median household income: $61,646
• Median home sale price: $367,074
• Median monthly rental price: $1,330
• Housing cost-to-income ratio: 33.9
• Home affordability index: 0.79

Not to be confused with the same-named New Jersey city, Newark, Delaware is a small city in Delaware’s New Castle County. Less than 30 minutes west of Wilmington, Newark sits on the Delaware/Maryland border. It’s home to the University of Delaware, bringing in students from Delaware, as well as many of the surrounding states. Newark ties for the highest well-being in the state with Townsend and North Star, as well as ranks number one for desirability.

Check out homes for sale in Newark and the Newark Market Trend Report.

10. North Star, DE

• Population: 8,009
• Median household income: $153,971
• Median home sale price: $537,500
• Median monthly rental price: $1,591
• Housing cost-to-income ratio: 19.6
• Home affordability index: 1.35

In the northwestern corner of the state, North Star shares a border with Pennsylvania. North Star ties with Townsend and Newark for the highest well-being in the state. It’s part of the Wilmington metropolitan area, about half hour drive away from the city. Nearby attractions include the White Clay Creek State Park, which features over 37 miles of hiking and biking trails, and the Middle Run Valley Natural Area.

Check out homes for sale in North Star and the North Star Market Trend Report.

3 More Popular Places To Live In Delaware

For being a small state, Delaware has plenty of desirable areas. While the following areas did not score high with our methodology, we’d be remiss if we didn’t talk about them. The following places have a lot to offer if you’re looking for a place to live in Delaware.

1. Wilmington, DE

• Population: 70,750
• Median household income: $49,354
• Median home sale price: $199,653
• Median monthly rental price: $1,073

Located on the banks of the Delaware River, Wilmington is the largest city in Delaware. It’s home to campuses for Delaware State University, the University of Delaware, as well as the Delaware College of Art and Design, among other colleges. The bustling colleges, combined with many museums and points of interest, give Wilmington a thriving cultural atmosphere. On top of that, the city features minor league baseball and basketball teams, meaning there’s no shortage of things to do in Wilmington.

Check out homes for sale in Wilmington and the Wilmington Market Trend Report.

2. Dover, DE

• Population: 38,992
• Median household income: $51,073
• Median home sale price: $254,975
• Median monthly rental price: $1,092

The capital city of Delaware, Dover, is also the second most populated city and is centrally located in the state. With its population of nearly 40,000, Dover features many museums and historical places. Its Silver Lake offers recreation, trails and fishing. For more recreation and wildlife, take a short drive to the Bombay Hook National Wildlife Refuge or the Little Creek Wildlife Area. Dover is also home to Delaware State University, a prominent historically black university, along with other institutions of higher learning.

Check out homes for sale in Dover and the Dover Market Trend Report.

3. Rehoboth Beach, DE

• Population: 1,151
• Median household income: $137,783
• Median home sale price: $1,500,000
• Median monthly rental price: $1,322

Rehoboth Beach is a popular Atlantic coastal town with a boardwalk featuring restaurants, shops and summertime attractions. If you love the beach and a thriving boardwalk, Rehoboth Beach is one of the best places to live in Delaware. But it’s not just a beach town. In the off-season, you’ll experience a quaint small town with many open amenities. Plus, it’s only a couple hours’ drive from major cities like Washington D.C. and Baltimore.

Check out homes for sale in Rehoboth Beach and the Rehoboth Beach Market Trend Report.

Tips For Moving To One Of Delaware’s Best Places To Live

If you’re moving to Delaware, there are a few things you should understand. One major thing to know is that the state is largely rural, with many natural areas and farmland. If you’re looking to live in a densely populated urban area, you may want to consider nearby cities like Philadelphia and Baltimore. Here are some other tips you should think about:

• Research neighborhoods: When looking at Delaware’s larger cities – like Wilmington and Dover – research down to the neighborhood level to choose the right neighborhood for you.
• Make adjustments for cost of living: On average, the cost of living in Delaware is slightly higher than the national average, but much lower than some of its East Coast neighbors. If you’re moving into the state, calculate the cost of living to help estimate the cost of living changes.
• Look into first-time home buyer assistance: If you’re a first-time home buyer, there’s assistance at the state and local level. Research first-time home buyer assistance in Delaware.
• Consider all loan types: There are several types of home loans, from conventional to government-sponsored loans like FHA or VA loans. Weigh the pros and cons of all types of home loans when buying a house in Delaware.
• Get approved: Before shopping for a house, get your finances in order. Sellers will know you mean business when you submit an offer with a mortgage approval letter. Get an initial mortgage approval before house hunting in Delaware.

The Bottom Line

The best places to live in Delaware showcase the state’s great natural setting, as well as its rich history. Many people agree that Delaware, and its 381 miles of coastline, is one of the country’s best kept secrets. On top of its native beauty, the state does not assess a property tax or charge sales tax, which is a big draw to both families and retirees. Whether you’re interested in a quiet beach town or a smaller city with a lot to offer, Delaware has a place for you.

If you’re planning to move to Delaware, start the approval process with Rocket Mortgage^®.

Methodology: Finding The Best Places To Live In Delaware

Rocket Homes collected and analyzed the most recent data on 12 key local and countywide metrics to give us insight into the top cities best for living. The 56 most populated cities analyzed are home to 30.4% of U.S. residents living in Delaware.

The metrics used in this study include:

• Violent crime rate
• Property crime rate
• Unemployment rate
• Google search volume
• Median rent
• Well-being index
• Median monthly income
• Median monthly housing costs
• Median days on market for homes
• Median home list price
• Freddie Mac primary mortgage market survey interest rates

Some of these metrics were then used to calculate housing cost to income ratio and home affordability index. These metrics were chosen based on public data availability and topical relevancy. Metrics from the U.S. Census are based on 2021 ACS 5-year estimates. In one case, county-level data was used because data is not recorded at the local level.

The housing cost to income ratio was calculated by taking the median monthly housing costs divided by the median monthly income to get the average percentage of income spent on housing costs in a household.

The home affordability index was calculated using median listing price for homes in that city, interest rate from Freddie Mac primary mortgage market survey and median yearly income. To interpret the indices, a value equal to or greater than 1 means that the average person has enough income to qualify for a mortgage in that area. The calculation assumes a down payment of 20% of the home price and a qualifying ratio of 25%.

Each data category was normalized and transformed into a range of points for scoring and comparison. Cities with violent crime rates greater than or equal to 55 and property crime rates greater than or equal to 65 were removed from the ranking. Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall Best Places To Live Score for each city. The final scores are sorted to produce the final rankings.

Other metrics considered without weight: