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9 Small Towns in Texas Realtors Predict Will Soon Be Retirement Hot Spots

Could one of these small Texas towns fit your retirement dreams?

By Josh Koebert , Edited by Calista Headrick

Updated Nov. 10, 2026

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Many future retirees are looking at small towns in Texas as a potential place to retire. Not only do residents of the Lone Star State avoid paying state income taxes, but many of its small towns practically ooze charm. And it doesn't hurt that many of the options are relatively affordable in this state.

This guide explores some of the top small towns that Texas real estate agents predict may become retirement hot spots.

Editor's note: All housing data comes from Zillow, unless otherwise stated.

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South Padre Island

Average home price: $449,768

If you're looking for coastal living on a budget, South Padre Island could be the perfect fit.

"Coastal Living at its best, perfect for those who dream of beach walks, Gulf views, boating, fishing and waterfront dining at very affordable prices," says Denise Franke, Real Estate Agent, Franke Realty/The Shores, of South Padre Island.

New residents can soak up the sun and enjoy the area's warm weather year-round without breaking the bank.

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Bayview

Average home price: $382,981

If you're willing to live near the coast, but not on the coast, Bayview offers a happy medium. It's just minutes from the coast. But you'll be set back from the sometimes rough waters.

"Bayview is a welcoming option for retirees seeking a quieter residential setting near the coast," says Franke.

With citrus groves and horse pastures, it's an idyllic location that still offers easy access to larger towns like Brownsville.

Port Isabel

Average home price: $263,288

Retirees looking for a town with classic southern charm on the coast might fall in love with Port Isabel.

"Port Isabel is a friendly coastal town rich in maritime history, local seafood, fishing, boating and small-town character," says Franke.

You can explore the quaint downtown and the historic lighthouse without giving up easy access to South Padre Island.

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Round Top

Average home price: $1,138,108

If you're looking for a home surrounded by beautiful farmland, Round Top could be a good fit. For retirees hoping to travel in their golden years, it's under two hours from Austin and Houston, which both offer international airports.

"Its antiques shows draw a world-class crowd, and a growing scene of boutique hotels, restaurants, and design shops gives retirees a cultured country lifestyle," says Erwin Nicholas II, founder and principal broker of MRE World, a Houston-based luxury real estate brokerage.

Keep in mind that living in Round Top isn't cheap. But for some retirees, it could be worth it.

Chappell Hill

Average home price: $619,879

Chappell Hill sits approximately one hour outside of Houston. With plenty of large properties for sale, it's a fun option for retirees looking to enjoy more room in their golden years. For example, it might be the perfect place to house horses or even a small ranch.

It offers "some of the prettiest rolling countryside near Houston, with hilltop homesites and ranchettes just off Highway 290," says Nicholas.

With Houston nearby, it's easy to drive in for medical care or to use the city's major international airport.

Boerne

Average home price: $555,988

Boerne offers beautiful hillside views to retirees seeking a slower pace. But it's only 30 minutes outside of San Antonio, which means you'll still have reasonably close access to medical facilities and an airport.

"It's the gold standard for retirees who want dramatic scenery without giving up big-city access," says Nicholas.

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Fredericksburg

Average home price: $511,559

Fredericksburg sits at a slightly higher elevation, which offers a milder climate than the surrounding region. With plenty of vineyards and endless hilltop views, many retirees can find a lot to like about the area.

"It's about an hour and 15 minutes from San Antonio and roughly an hour and a half from Austin, so retirees get a true getaway feel with two major airports and medical hubs within a day trip," says Nicholas.

Lake Travis

Average home price: $461,123

If you're looking for lakeside living in retirement, the Lake Travis area could be a good match. It's easy to find a place to dock a boat, opening the door to endless days on the water.

Lake Travis offers "Hill Country cliffs and hilltops overlooking the water, with lake views, golf, and boating out the back door," says Nicholas.

With Austin just 45 minutes away, retirees can still have easy access to a major airport and medical care.

Brenham

Average home price: $323,597

Brenham is one of the more affordable options on this list. Although it's not near the coast, it sits in beautiful hill country.

"It's genuinely charming, it's between Houston and Austin so your kids can reach you from either, and it's Blue Bell country," says Ben Jenson, co-founder of Caruth Brothers Real Estate. "If I were advising a retiree to buy in the next twelve months, I'd point them here."

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Bottom line

Finding the right spot to call home in retirement is a key part of any retirement plan. Unfortunately, picking the wrong spot to call home could spell disaster for your financial situation as you age. Before committing to a particular location, consider visiting for more than a weekend. And, if possible, rent when you move to town to decide if you truly enjoy living there.

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