Retirement Retired Life

15 Cheapest Places to Retire in the Southwest

Enjoy the sunny Southwest without stretching your retirement budget.

By Laura Gesualdi-Gilmore

Edited by Esther Carlstone

Updated March 7, 2026

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Many Americans nearing retirement dream of spending their golden years basking in the beauty and warmth of the Southwest. And while certain popular areas in the region now have the steep price tags to match demand, there are still plenty of affordable towns, where you can stretch your retirement dollars further and enjoy near constant sunshine.

We analyzed rental and housing data from Zillow to determine the cheapest retirement destinations. These 15 cities are some of the most affordable for retirees in the Southwest region.

Editor's note: All figures come from an original data study by FinanceBuzz.

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Yuma, Arizona

Average Rent: $1,347

Median Home Price: $291,589

Yuma sits on the California state line in southwest Arizona and is a midpoint between San Diego and Phoenix, though it's much more affordable than both. For retirees looking for a spot that's, reportedly, sunny and warm 91% of the year, and those who like a good road trip, it could be the ideal place to settle.

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Las Cruces, New Mexico

Average Rent: $1,387

Median Home Price: $285,037

In sunny southern New Mexico, Las Cruces has become something of a haven for retirees already. Nearly 20% of the population is over age 65.

Affordability and 320 days of sunshine per year likely play a large role in that, and Las Cruces also offers easy access to desert hikes, top-rated farmer's markets, and more.

Amarillo, Texas

Average Rent: $1,212

Median Home Price: $199,945

There are several affordable options in Texas for retirees hoping to take advantage of the state's warm weather and favorable tax situation. Texas has no income tax, and that applies to all retirement income.

In Amarillo, there's plenty to do, see, and eat, and it's an excellent option for those who want to enjoy the tranquility and natural beauty of the Texas Panhandle.

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Tucson, Arizona

Average Rent: $1,401

Median Home Price: $318,643

Retirees looking for warm weather and affordability, who also happen to be drawn to big city life, will be in good company in Tucson. About 20% of the population is over 62 years old.

It's no surprise that retirees are drawn to the city, with its mountain views, proximity to miles of hiking and biking trails, golf courses, and 350 days of sunshine per year.

Lawton, Oklahoma

Average Rent: $1,052

Median Home Price: $137,303

Lawton is a charming town in southwest Oklahoma and is the most affordable option on this list.

Financial perks in the state extend beyond low housing costs, especially for retirees, as Social Security benefits are not taxed and there's a deduction for other types of retirement income.

Casa Grande, Arizona

Average Rent: $1,592

Median Home Price: $315,131

Casa Grande is located about halfway between Phoenix and Tucson in southern Arizona. Beyond affordability, many retirees are attracted to the town's other offerings, like a charming historic main street and a range of golf courses.

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Albuquerque, New Mexico

Average Rent: $1,474

Median Home Price: $335,186

Residents in Albuquerque get to enjoy a healthy mix of city living and Southwest charm.

The city has a mild, sunny climate year-round, a lively downtown with great dining options, and, for those who enjoy the great outdoors, easy access to the Sandia Mountains.

North Las Vegas, Nevada

Average Rent: $1,831

Median Home Price: $402,242

For those who enjoy Vegas, but not so much that they want to live there, North Las Vegas offers a happy medium. It's close to both the glitz of The Strip and a range of natural wonders surrounding the Las Vegas Valley.

If you're hoping to buy, it's also a bit more affordable to purchase a home than in Vegas proper.

El Paso, Texas

Average Rent: $1,475

Median Home Price: $229,250

El Paso sits right on the border with Mexico and is not far from New Mexico's state line.

Beyond affordability and over 300 days of sunshine a year, the town is a haven for outdoor enthusiasts, with miles of hiking trails and easy access to natural wonders like the Organ Mountains.

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Visalia, California

Average Rent: $1,868

Median Home Price: $389,260

For those who have retirement dreams of California but are put off by the average cost of living, Visalia could be the answer. The charming SoCal city is in the foothills below the Sierra Nevada mountain range, which means natural beauty and outdoor recreation right in your backyard, and you can still drive to the ocean if you want to.

Pueblo, Colorado

Average Rent: $1,273

Median Home Price: $278,771

In southern Colorado, in the front range of the Rockies, Pueblo is about 30 miles south of Colorado Springs. It's one of the most affordable areas in the state and is famed for several things, including natural beauty, mild temperatures year-round, and, of course, delicious Pueblo green chiles.

Odessa, Texas

Average Rent: $1,556

Median Home Price: $240,255

Odessa is way out in west Texas, secluded in the sense that it's not near any major cities. Still, it has its own charm, and there's still plenty to do for active retirees.

The town has thriving dining and arts scenes and, of course, you can catch a rodeo, too.

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Maricopa, Arizona

Average Rent: $1,845

Median Home Price: $344,475

Maricopa may be a bit pricier than many of the other cities on this list, but it is still one of the more affordable places in Arizona to buy a home.

For outdoorsy types drawn to desert beauty, its location in the middle of the Sonoran Desert, surrounded by mountain ranges like the Sierra Estrellas, can't be beat.

San Angelo, Texas

Average Rent: $1,418

Median Home Price: $224,720

Located on the Concho River in western Texas, San Angelo offers perks beyond affordability that many retirees are drawn to. It boasts a healthy mix of vast, open spaces and charming gathering spots like Historic Downtown San Angelo and the Concho River Walk.

Ogden, Utah

Average Rent: $1,309

Median Home Price: $390,499

If you have your eyes set on Utah for retirement, Ogden is one of the most affordable options. Though technically still considered Southwest, it's the northernmost city on this list.

The charming mountain town is conveniently located near the Wasatch Mountains, about 35 miles north of Salt Lake City.

Bottom line

It's no secret that the Southwest is a highly sought-after region for retirees hoping to relocate. That popularity has put many once-affordable areas out of reach for many.

Yet, it's possible to relocate to a charming town in the region, like the ones listed here, and avoid making money mistakes with just some simple research on the cost of living, taxes, and housing costs to ensure your retirement dollars stretch further.

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