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10 Small Midwest Towns Realtors Are Predicting Will Become Retirement Hotspots

With cities in the Sunbelt becoming more crowded and expensive, the Midwest is becoming an appealing alternative for retirees.

By Cat Lafuente

Edited by Lauren Wellbank

Updated Jan. 3, 2025

If you’re considering relocation to a new town while you’re assessing your retirement readiness, you may have a few specifications in mind when you’re thinking about your new home.

Things like a more affordable cost of living, walkability, or even the chance to build community in a new city — one with a reputation for being friendly — may all be high on your priority list, prompting you to consider some perennial retirement hot spots, like Florida.

But did you know that you don’t have to flee to The Sunshine State to find what you’re looking for?

“I have seen many Midwestern cities become more retirement-friendly because of their luring amenities and good quality of life,” says real estate agent Alexei Morgado, founder of Lexawise Real Estate Exam Preparation.

These cities have everything you need without being huge and overwhelming, along with their own unique perks and personalities, which make them appealing for retirees looking for Midwest alternatives when it comes time to retire.

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Bloomington, Indiana

“Bloomington is swiftly emerging as a Midwest retirement haven, thanks to its lively arts scene, world-class medical facilities, and the proximity of Indiana University,” says real estate agent Zev Freidus, president of ZFC Real Estate in Boca Raton, Florida.

You’ll also find restaurants and shops in the walkable downtown area, where life doesn’t break the bank.

“Bloomington’s real estate remains refreshingly affordable compared to larger Midwestern metros, and property taxes across Indiana are notably lower than many neighboring states,” Freidus continues.

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Traverse City, Michigan

Retirement communities and 55+ neighborhoods with senior centers are growing quickly in this gem on Lake Michigan, explains real estate professional Sergio Aguinaga, owner of Michigan Houses For Cash in Lincoln Park, Michigan.

“The scenery is gorgeous, the downtown area is easy to walk, there are great healthcare options,” he says. “Traverse City is also close to bigger cities like Grand Rapids but still has a quiet, smalltown vibe that retirees enjoy.”

Tax laws are also friendly for retirees in Michigan, a perk for folks living on a budget.

Eau Claire, Wisconsin

At the confluence of the gorgeous Eau Claire and Chippewa Rivers, you’ll find this artsy city of Eau Claire.

“Eau Claire is fast gaining popularity among retirees who find just the right mix between outdoor activities and cultural events,” Morgado says.

“The city has scores of art galleries, museums, and breweries — a perfect venue for spending enjoyable moments and companionship.”

You can explore those businesses on foot in this walkable city, which also has good healthcare facilities.

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Springfield, Missouri

With an affordable housing market and a modern airport, Springfield is super attractive, according to real estate agent Ryan Dossey, co-founder of SoldFast, a real estate brokerage and homebuying business.

“Springfield is a fantastic retirement location due to its low cost of living, nearby attractions, excellent hospitals, and growing population,” he says. Crime is even decreasing in spite of the notable growth.

There’s plenty to do when family visits as well. “Springfield offers fantastic amenities and attractions, such as the Dickerson Park Zoo and Wonders of Wildlife National Museum & Aquarium,” Dossey continues.

Centerville, Ohio

“Centerville is becoming a go-to spot for retirees, and it’s easy to see why,” says real estate agent Ryan Gillen, CEO and owner of The Gillen Group in Ohio.

“The homes here are affordable, which is perfect for people on fixed incomes, and you’re always just minutes from great hospitals.”

On top of checking those important boxes, Gillen explains that Centerville gives residents peace of mind.

“It’s a safe, clean area where retirees can really settle in and enjoy life,” he continues. The cherry on top? Warren County’s friendly tax laws.

Ankeny, Iowa

Outside of Des Moines you’ll find Ankeny, which Morgado shares has big-city benefits and small-town coziness.

“Beautiful trails, golf courses, high-end restaurants, and craft breweries give plenty of things one would like to do within the community,” he says.

There are practical amenities in Arkeny in addition to those desirable perks, too.

“The low cost of living and good healthcare options make the area an appealing destination for retirees,” Morgado adds.

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West Chester, Ohio

Safe, convenient, and offering an excellent quality of life, Gillen says this Cincinnatii-area city should be on your radar.

“West Chester is really growing when it comes to retirement living,” he says. “Builders are putting up new retirement homes and complexes all over, which shows just how popular the area is becoming.”

What else could you want from the place you call home? “Like Centerville, it’s affordable and close to fantastic healthcare,” Gillen adds.

Fort Wayne, Indiana

Affordable and walkable, Fort Wayne has been named one of the best cities to retire by U.S. News & World Reports, shares Morgado.

“Fort Wayne offers retirees that perfect blend of urban amenities with small-town charm,” he says. “From eclectic neighborhoods with a very lively dining scene to outdoor attractions galore, everything is just down the street from each other.”

Any additional services you need are a short drive away, too. “The proximity of cities such as Toledo, Indianapolis, and Columbus adds to the convenience,” Morgado adds.

Cedar Rapids, Iowa

Cedar Rapids is refreshingly affordable for several reasons, notes Freidus.

“Iowa’s retirement-friendly tax policies — including exemptions on Social Security Income — add an extra layer of financial security for seniors,” he says.

Cedar Rapids strikes the balance between Midwestern charm and city amenities as well.

“Meanwhile, the cost of living remains comfortably below the national average, translating into more space in the budget for travel, hobbies, or time with family,” he continues.

Add to that top-tier healthcare and thriving retirement communities, and you’re all set.

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Green Bay, Wisconsin

Green Bay is so much more than a sports hub, explains Morgado, though that’s also part of the appeal.

“The city, apart from its love for football, also offers a low cost of living, a very walkable downtown area, and access to good health facilities for retirees,” he says.

If you can’t find everything you need in this bayside haven, just hop in your car. “It is less than two hours away from Milwaukee, a city with a very vibrant cultural scene,” he adds.

Bottom line

If we’ve noticed a theme with all of these smaller Midwest cities, it’s that golden combination of affordability, walkability, and having plenty to do and see. They also offer residents excellent healthcare options, which is crucial to have when you’re planning for retirement.

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