The 10 Best Places To Retire In Texas (TX)

It’s a good thing everything’s bigger in Texas, because everyone, it seems, is moving there. Migration to Texas from other U.S. states has surged in recent years. America’s second largest state geographically (don’t forget Alaska) could fit 10 European countries within its borders. And make no mistake, one reason many retirees are looking at Texas for their new home is the availability of inexpensive land. But Texas is much more than just its wide-open vistas. In a state as diverse culturally and geographically as Texas, there is really something for everyone.

Is Texas A Good State To Retire In?

Based on its unofficial motto, “Don’t mess with Texas,” Texas wears its pride like a badge of honor. It may not be for everyone entering their sunset years, but many retirees find that attitude energizing and infectious. The state has a strong, diverse economy, so a second career or part-time job is very attainable. There is also no state income tax. Retirees seeking to buy a house in Texas will find median home prices of about $336,000, slightly below the U.S. average of $363,000. And the cost of living is 15th lowest among all U.S. states.

Whether you’re looking for peace, quiet and natural beauty or the dynamic excitement of city life, Texas has it all to the extreme. When deciding where to live, cities of Houston, Dallas/Fort Worth, Austin and San Antonio each offer their own unique version of Texas culture. Medical care in the state is second to none. And some of the most iconic sports franchises and college athletic programs in America are in Texas, including the most valuable sports franchise in the world, the legendary Dallas Cowboys.

Many people who retire in Texas are escaping the cold weather of the northeast and midwestern states. Temperatures can get below freezing and snow and ice are possible in deep winter, but someone from Vermont will find the Texas winter short and mild. Summers can be hot and humid in the east of the state and hot and dry out west. Texans enjoy proximity to Mexico, Central America and the Caribbean. A flight from Dallas to Mexico City is a short 2 hours, 40 minutes.

10 Best Places To Retire In Texas

In determining the 10 best places to retire in Texas, Rocket Homes^SM considered key metrics concerning crime, housing and economic standing of those of retirement age (see Methodology section at the end). One data point of particular interest to those retirees on a fixed income is the monthly housing cost to income ratio. It’s expressed as a percentage of one’s gross monthly income that is dedicated to a mortgage payment, which includes principal, interest, taxes and insurance.

1. Lago Vista, TX

• Population: 8,769
• Median Yearly Retirement Income: $42,633
• Median Home Value: $310,500
• Median Monthly Rental Price: $888
• Percent Of Those Age 65+: 28.2%
• Percent Of Those With Retirement Income: 39.8%

A small town with a suburban feel, Lago Vista is growing like seemingly every other town in Texas, with many new residents being retirees. Despite the influx, and in a town where 85% own their own home, housing prices remain below the national average. The town exists on the banks of beautiful Lake Travis, a 65 mile reservoir formed from the Colorado River. Find nearby recreation at Pace Bend Park or travel just a short drive to the Balcones Canyonlands National Wildlife Refuge, a fantastic birdwatching habitat. The state capital of Austin, one of the fastest growing cities in America and well-known for its music, food and culture, is just a one-hour drive southeast.

Further your discovery of Lago Vista by looking at homes for sale in Lago Vista and Lago Vista housing market trends.

2. Lumberton, TX

• Population: 13,447
• Median Yearly Retirement Income: $41,614
• Median Home Value: $214,500
• Median Monthly Rental Price: $938
• Percent Of Those Age 65+: 20%
• Percent Of Those With Retirement Income: 27.3%

Lumberton is an old railroad town near the city of Beaumont in east Texas, near the border with Louisiana. Lumberton is small town Texas, with affordable housing, low crime and a slower pace to life. There is a greater range of services and amenities nearby in Beaumont when needed. It’s best known in the region as the home of Village Creek State Park, a 2,500 acre, heavily forested park with excellent canoeing, hiking and birdwatching on the outskirts of the Big Thicket National Preserve.

If you’re seriously considering a move to Lumberton, check out homes for sale in Lumberton and Lumberton housing market trends.

3. Woodway, TX

• Population: 9,310
• Median Yearly Retirement Income: $36,639
• Median Home Value: $250,900
• Median Monthly Rental Price: $1,602
• Percent Of Those Age 65+: 22.5%
• Percent Of Those With Retirement Income: 25.9%

Woodway is a small town on the outskirts of Waco, a city of 140,000 residents. It is centrally located “deep in the heart of Texas,” about halfway between Austin and Dallas. Woodway is characterized by its oak-lined streets and friendly neighborhoods, where a vast majority of people own their homes and homes are very affordable. Woodway sits on shores of the massive Waco Lake, with plenty of access to boating and fishing. Bigger town things to buy, do or see can be found in Waco, also home to Baylor University and an excellent health care system, just a short drive away.

If you’re intrigued about life in Woodway, Texas, check out homes for sale in Woodway and Woodway housing market trends.

4. Santa Fe, TX

• Population: 12,782
• Median Yearly Retirement Income: $26,285
• Median Home Value: $235,900
• Median Monthly Rental Price: $897
• Percent Of Those Age 65+: 17.9%
• Percent Of Those With Retirement Income: 31.3%

Santa Fe is a pleasant small town in southeast Texas that is just a 20-minute drive to the beaches and deep-sea fishing opportunities of the Gulf of Mexico. Despite being very close to Galveston and the Houston metropolis, Santa Fe “still feels very much like a small town,” wrote Texas Monthly journalist Skip Hollandsworth. Housing prices and the cost of living are both low in Santa Fe. More outdoor activities can be experienced at the Jesse Jones Nature Park and the Stephen F. Austin State Park.

To acquaint yourself with the housing market in Santa Fe, check out homes for sale in Santa Fe and Santa Fe housing market trends.

5. Canyon Lake, TX

• Population: 30,641
• Median Yearly Retirement Income: $39,933
• Median Home Value: $258,600
• Median Monthly Rental Price: $1,067
• Percent Of Those Age 65+: 22.4%
• Percent Of Those With Retirement Income: 34.4%

Canyon Lake, Texas is centrally located between Austin and San Antonio on the rim of the beautiful Texas Hill Country. Canyon Lake is considered a census-designated place (CDP) with several unincorporated communities within it. The 13 square mile lake, which is a reservoir created from a dam on the Guadalupe River, gives the area the nickname “The Water Recreation Capital of Texas.” There are more than 10 public parks on the lake’s 80 miles of shoreline and miles of cool, gentle waters on the Guadalupe River. The Texas Hill Country is becoming a retirement hotspot for its beautiful vistas, winding roads and friendly people. Home values are still good but have been on the rise.

To get a snapshot of the Canyon Lake real estate market, search homes for sale in Canyon Lake and Canyon Lake housing market trends.

6. Helotes, TX

• Population: 8,937
• Median Yearly Retirement Income: $37,588
• Median Home Value: $317,900
• Median Monthly Rental Price: $2,084
• Percent Of Those Age 65+: 18.9%
• Percent Of Those With Retirement Income: 38.1%

Helotes is a small town in Texas Hill Country that has, in recent years, seen growth as a far suburb of San Antonio, with many new residents being retirees. Still, Helotes retains its rural character with most people owning their homes. Helotes’s roots stretch back to the 19th century and there are several historical structures in the old town. There is even a 1940s era honky tonk dance hall that draws top country music talent, including Willie Nelson. The Cornyval Festival is an annual city tradition bringing in local vendors and thousands of area residents to celebrate the namesake of the town.

To learn more about the Helotes real estate market, check out homes for sale in Helotes and Helotes housing market trends.

7. Heath, TX

• Population: 9,362
• Median Yearly Retirement Income: $31,930
• Median Home Value: $543,400
• Median Monthly Rental Price: $2,083
• Percent Of Those Age 65+: 16.7%
• Percent Of Those With Retirement Income: 28.2%

Heath is a small, affluent community east of the Dallas metroplex. The town enjoys its shoreline views of Lake Ray Hubbard and rolling countryside. Home values in Heath are well above the national average and neighborhoods feature stately, distinctive homes. Heath’s growing trail system and two community parks, including one along the lakeshore, contribute to an active lifestyle. There are two yacht clubs supporting an enthusiastic boating community, as well as one of the Dallas area’s best golf courses at the Buffalo Creek Golf Club. Not to be missed in Heath (or any Texas small community) is the Independence Day Parade and Patriotic Celebration, held every July Fourth.

To become more familiar with Heath’s real estate market, check out homes for sale in Heath and Heath housing market trends.

8. Lakeway, TX

• Population: 18,471
• Median Yearly Retirement Income: $56,565
• Median Home Value: $524,800
• Median Monthly Rental Price: $2,330
• Percent Of Those Age 65+: 22.5%
• Percent Of Those With Retirement Income: 28.9%

Lakeway is a relatively affluent community in the exurbs of Austin, the state capital in central Texas. Though it is a thriving family community known for its excellent schools, Lakeway also operates as a resort community that is ideal for retirees ­– many of whom use a golf cart for local transportation. Lakeway is situated on the shores of Lake Travis, a 65-mile-long reservoir that offers endless opportunities for boating, fishing and visiting many of the other lakeside towns. Lakeway is an active place, with an award-winning parks system that includes the volunteer-run Hamilton Greenbelts, a network of trails that meander along scenic Hurst and Yaupon creeks. The vast Canyonland Trails network is popular for hiking and mountain biking and takes you to the top of Mount Lakeway.

For a further dive into life in Lakeway, start by looking at homes for sale in Lakeway and Lakeway housing market trends.

9. Colleyville, TX

• Population: 25,827
• Median Yearly Retirement Income: $40,441
• Median Home Value: $586,400
• Median Monthly Rental Price: $2,549
• Percent Of Those Age 65+: 17.8%
• Percent Of Those With Retirement Income: 25.1%

For people who can afford an expensive home and higher property taxes, Colleyville is a fantastic place to retire. This suburban community between Dallas and Fort Worth has a median household income of $180,000 a year, more than double the national average, making it the 18th richest city in America. Travel bugs will also enjoy that Colleyville is a quick Uber ride to a gateway to the world at DFW International Airport. Colleyville is a vibrant community with lots of outdoor fun, such as golfing, boating and walks in the Colleyville Nature Center. Colleyville is also known for its beautiful tree-lined neighborhoods, lively downtown shopping scene and, of course, easy access to the benefits of one of America’s most dynamic metroplexes in Dallas/Fort Worth.

For a deeper dive into life in Colleyville, look at homes for sale in Colleyville and Colleyville housing market trends.

10. Athens, TX

• Population: 12,719
• Median Yearly Retirement Income: $26,013
• Median Home Value: $109,500
• Median Monthly Rental Price: $802
• Percent Of Those Age 65+: 21%
• Percent Of Those With Retirement Income: 23%

Located in the rural countryside southeast of Dallas, Athens is not only a Certified Texas Retirement Community, it also proclaims itself the “Black-Eyed Pea Capital of the World” and the birthplace of the hamburger. Retirees on a budget will find the average house to be extremely affordable. In addition to nearby Lake Athens, residents also have easy access to weekend getaways to the larger Cedar Creek Reservoir to the west and Lake Palestine to the east. Attractions include the Texas Freshwater Fisheries Center, the Henderson County Fairgrounds and the Athens Scuba Park. Since 1948, the Texan Theater in downtown Athens has presented local, regional and national live music acts for generations to enjoy.

To check out the real estate scene in the Black Eyed Pea Capital, research homes for sale in Athens and Athens housing market trends.

Other Popular Places To Retire In TX

The above qualify as the top Texas cities for retirees based on our carefully considered metrics, but of course in a state as large and beloved as Texas there are lots of other fantastic places to live out your retirement. Included among these are three of the top ten largest cities in America, not just in Texas.

1. Austin, TX

• Population: 944,658
• Median Yearly Retirement Income: $34,219
• Median Home Value: $381,400
• Median Monthly Rental Price: $1,415
• Percent Of Those Age 65+: 9.3%
• Percent Of Those With Retirement Income: 12.4%

The tenth largest city in the U.S. may be moving up the charts based on the number of people emigrating there from all over the country and even the world. The median home value is rising and is high for such a large city. The state capital and home of the University of Texas is proud of its vibrant cultural diversity in a state that leans conservative. In fact, the unofficial slogan of Austin is “Keep Austin Weird.” Aside from its friendly, laid-back vibe and active nightlife, Austin is also known as the Live Music Capital of the World. Austin also has a well-regarded food scene that includes its own distinct style of barbecue.

Considering moving to Austin? Check out homes for sale in Austin and Austin housing market trends.

2. Houston, TX

• Population: 2,293,288
• Median Yearly Retirement Income: $28,911
• Median Home Value: $200,700
• Median Monthly Rental Price: $1,136
• Percent Of Those Age 65+: 11.1%
• Percent Of Those With Retirement Income: 12.2%

Many would be surprised to find that Houston is now the fourth largest city in the United States. One reason is a high influx of immigrants. In fact, nearly one in four people living in greater Houston are foreign born, with high populations of Mexicans and Central Americans and a rising number of Asians. Houston has a low cost of living, affordable housing, no state income tax and a great food scene. The diversifying economy of Houston is strong, driven by the energy industry. Houston has excellent parks and is adjacent to the bayous and waterways feeding out to the Gulf of Mexico.

If you’re thinking of moving to Houston, check out homes for sale in Houston and Houston housing market trends.

3. Dallas, TX

• Population: 1,300,239
• Median Yearly Retirement Income: $27,076
• Median Home Value: $230,000
• Median Monthly Rental Price: $1,178
• Percent Of Those Age 65+: 10.7%
• Percent Of Those With Retirement Income: 11.3%

Dallas is another modern Texas city that has seen tremendous growth in recent years, thanks in part to it being ranked fifth among the fastest-growing economies in the United States. Combined with neighbor Fort Worth, the two cities make up one of the largest metroplexes in the country. In addition to its temperate year-round weather and low cost of living, Dallas is known for its distinctive neighborhoods and districts, including a large Arts District and Deep Ellum with its lively music and club scene. Dallas is also a passionate sports town, with franchises in all four major spectator sports. King of them all is the National Football League’s world-renowned Dallas Cowboys, long ago dubbed “America’s Team.”

Explore housing in each distinct Dallas neighborhood by looking at homes for sale in Dallas and Dallas housing market trends.

The Bottom Line

For a state sometimes known by its singular identity of the bold, no-nonsense American cowboy, modern Texas is a diverse melting pot of American and international sensibilities. There are all-American small towns and four of the top 10 largest cities in the U.S. There is something for everyone, including retirees who will enjoy the mild winters, abundant outdoor recreation opportunities and friendly people. Texas’s powerful economy is helped by its low cost of living, affordable housing and zero income tax, making it a safe place to bet on for people on a pension or fixed income. If you’re convinced that you’ve found the perfect corner of Texas for your future, it’s time to get started on the mortgage process today and see what you qualify for.

Methodology: Finding The Best Places To Retire In Texas

Rocket Homes collected and analyzed the most recent data on eight key local and countywide metrics to give us insight into the top cities best for retiring. We analyzed the 425 most populated cities in Texas that have Rocket Homes listings. These cities are home to 67% of the state’s residents. The metrics used in this study include the violent crime rate, property crime rate, median rent, percent of those with retirement income, percent of those 65 years old or older, mean yearly retirement income and median monthly housing costs for those with mortgages. Some of these metrics were then used to calculate housing cost to income ratio. These metrics were chosen based on public data availability and topical relevance. 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. 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 Retire Score for each city. The final scores are sorted to produce the final rankings.

Other metrics considered without weight: