What gave this city its 'best place to retire' crown? You can actually afford to live there.

By Jessica Hall

This Midwestern city came in first for the second year in a row

Someone turning 65 today can expect to live nearly two more decades, meaning Americans need to carefully select where to retire.

The cost of living is top of mind for Americans of all ages, cementing Midland, Mich., as the best place to retire for the second year in a row.

The Midwestern city of about 42,500 people held on to its top spot due to its low cost of living, high quality of life and favorable retiree taxes, according to the latest ranking by U.S. News & World Report.

"The whole country is feeling the pinch right now, so it's not a surprise that affordability is a top priority," Megan Wood, managing editor of home services and real estate at U.S. News, told MarketWatch.

Midland's affordability metrics looked at items such as the cost of shelter, including rents and mortgages, as well as utilities, transportation and fuel and consumer goods and services. The city does not impose a local sales or income tax, and Michigan does not tax Social Security income.

Last year, Midland nabbed the top spot due to quality of life, as well as affordability. Its top ranking this year was driven by affordability. Midland's community is active, with abundant senior programming for social and cultural events, as well as many options for senior housing, Wood said. About 23% of its residents are over the age of 45 and 20% are over age 65.

The city, which is about two hours from Detroit and near Lake Huron's Saginaw Bay, is the headquarters of chemical company Dow (DOW). In addition to its thriving arts and cultural scene, Midland is known for an abundance of midcentury modern architecture. It's also home to the minor league baseball team the Great Lakes Loons.

"Retirees are seeking a place that gives them a sense of security and comfort as they live out their golden years," Wood said. "Whether that comfort prioritizes scenic nature spots, access to multicultural experiences, or everyday affordability, places like Midland, Michigan, offer financial safety while still providing a good quality of life."

U.S. News adjusted its scoring weights for the new rankings to mirror growing concerns over affordability in the United States. This resulted in multiple double-digit jumps among the top 25, including No. 8 Paducah, Ky., landing in the top 10 for the first time.

The report comes as roughly 18% of the U.S. population is now 65 or older. An adult turning 65 today can expect to live nearly two more decades, according to the Centers for Disease Control and Prevention. That puts increased importance on the decision about where to retire, since retirement itself could last decades.

More than one in three retirees have moved during retirement, according to 2025 research by the nonprofit Transamerica Institute and the Transamerica Center for Retirement Studies. Among those who moved, the top reasons included being closer to family and friends, downsizing into a smaller home, starting a new chapter in life, reducing expenses, moving to a place with a better climate and no longer needing to live near work, Transamerica found.

Midland is followed on the list by Homosassa Springs, Fla., which is bolstered by its strong affordability scores, growth of its older population and low retiree taxes. Weirton, W. Va., came in at No. 3 with high marks for quality of life, low retiree taxes, affordability and quality of life.

Traditional retiree hotspots such as Florida and Texas each appeared twice in the top 10 and multiple times throughout the listing of the top 250 locales, while states such as California and New Jersey fell toward the bottom of the list due to their high cost of living, Wood said.

U.S. News evaluated more than 850 U.S. cities based on how well they meet American retirees' expectations against measures including quality of life, affordability, healthcare, retiree taxes, job market, and population and migration for retirees ages 55 and older.

"This ranking is meant to be used as a starting point for retirees to do more research and find the best place that suits them," Wood said.

Other rankings of the best places to retire earlier this year highlighted Florida, with Orlando taking the top spot in WalletHub's recent study due to favorable taxes and access to quality healthcare. Meanwhile, Wyoming topped a report by CareScout, a company that helps families find eldercare, due to the state's lack of personal income tax and its having lowest rate in the nation of multiple chronic conditions among Medicare beneficiaries.

-Jessica Hall

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-27-26 0921ET