Retirement Retired Life

Experts Say These 9 Southern Retirement Towns Are Still Undiscovered

These Southern towns offer retirement appeal beyond the usual hotspots.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Nov. 14, 2026

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The South has long attracted retirees with its low cost of living, mild winters, and tax advantages. Several states exempt Social Security benefits from income taxes, while others offer deductions for pensions and retirement-account withdrawals. These are meaningful for people on fixed incomes.

Still, the best retirement value is sometimes in smaller towns, where home prices are lower, the pace of life is slower, and large-city amenities are within reach.

Cameron Walker, a real estate agent who manages Clever Real Estate's agent network, sees opportunities in several coastal communities. He also cautions against confusing less-famous destinations with inexpensive ones.

Here are nine Southern towns worth including in your retirement plan.

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

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Bluffton, South Carolina

Average home price: $498,273

Residents over 65: 24.6%

Nearest hospital: Novant Health Hilton Head Medical Center (12–15 miles)

Bluffton sits between Savannah, Georgia, and Hilton Head Island, South Carolina, offering access to coastal scenery, historic streets, boating, and golf.

Jennifer Dane, a realtor with Better Homes & Gardens Palmetto in Charleston, describes the town as the perfect combination of history and modern amenities.

That combination comes at a price. While less expensive than nearby coastal alternatives, the town isn't a bargain. Dane warns against considering South Carolina's Social Security tax exemption a guarantee of affordability.

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Bay St. Louis, Mississippi

Average home price: $239,667

Residents over 65: 28.2%

Nearest hospital: Ochsner Medical Center–Hancock (within town)

Bay St. Louis offers a historic downtown, waterfront scenery, locally owned restaurants, and a relaxed Gulf Coast atmosphere. It also gives retirees access to the wider Mississippi Gulf Coast region.

Walker highlights Mississippi's favorable treatment of retirement income as a potential advantage, but warns that homeowners and flood insurance can cost several thousand dollars annually.

Bay St. Louis has access to medical services, but seniors who need frequent specialist appointments should identify their preferred providers and calculate the actual driving time.

Ocean Springs, Mississippi

Average home price: $273,211

Residents over 65: 21.4%

Nearest hospital: Singing River Ocean Springs Hospital (within town)

Combining a historic downtown with an arts scene, independent shops, restaurants, and access to the Mississippi Gulf Coast, Ocean Springs is a hidden gem.

Yet the same coastal risks that affect Bay St. Louis apply here. Storm exposure, flood zones, and insurance premiums vary. Picking a home away from the water may carry less risk.

Walker recommends weighing recurring expenses against the initial purchase price rather than assuming a cheaper house automatically makes retirement more affordable.

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Brunswick, Georgia

Average home price: $255,387

Residents over 65: 18.4%

Nearest hospital: Southeast Georgia Health System Brunswick Campus (within town)

Brunswick offers an alternative to St. Simons Island, a popular nearby destination with a more expensive coastal profile. Retirees may enjoy the coastal setting without necessarily paying the price of living on a resort island.

Georgia exempts Social Security benefits from state income tax and offers a retirement-income exclusion.

Walker urges potential buyers to research flood maps and insurance costs because of coastal Georgia storm and flooding exposure.

Gulf Shores, Alabama

Average home price: $452,589

Residents over 65: 25.9%

Nearest hospital: South Baldwin Regional Medical Center (~10 miles)

Gulf Shores appeals to retirees who want white-sand beaches, boating, fishing, and a coastal lifestyle with restaurants and recreation.

The city offers a recognizable beach lifestyle, but that popularity and its coastal location make homeownership expensive. The cheapest listing isn't necessarily the best value if insurance and association fees are high.

Danville, Virginia

Average home price: $155,634

Residents over 65: 21.1%

Nearest hospital: Sovah Health-Danville ER (within town)

This inland city with a revitalized River District, historic architecture, local businesses, and lower housing costs offers a different kind of Southern retirement.

Virginia exempts Social Security benefits from tax and offers an age deduction for qualifying older residents.

Walker describes Danville as a genuine value destination, but cautions that lower housing costs may come with fewer health care options and less direct access to major airports.

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Hendersonville, North Carolina

Average home price: $406,006

Residents over 65: 33.5%

Nearest hospital: Pardee Hospital (within town)

Hendersonville is an alternative for retirees who like Asheville but want to explore a smaller neighboring community. The problem is that it's no longer an obscure bargain. Its popularity has pushed home prices upward, and retirees shouldn't assume that choosing it over Asheville automatically delivers substantial savings.

Walker also urges caution when evaluating properties near creeks and rivers following the severe flooding and storm damage that affected western North Carolina in 2024.

Paducah, Kentucky

Average home price: $192,711

Residents over 65: 17.7%

Nearest hospital: Mercy Health-Lourdes Hospital (within town)

This western Kentucky city is known for its historic architecture, arts scene, and riverfront location. Its smaller-city scale may appeal to retirees who prefer local businesses and cultural activities.

Housing affordability is one of its strongest selling points. Paducah's lower home prices may leave retirees with more budget room, but the right choice depends on transportation needs and the flood exposure of the particular property.

Cedar Key, Florida

Average home price: $319,860

Residents over 65: 52.1%

Nearest hospital: HCA North Florida Hospital (~60 miles)

Cedar Key is a quiet Gulf Coast community with a large retiree population. If you prefer a slower pace, waterfront scenery, and a small-town atmosphere, you may find it ideal. However, it's also located on a low-lying island exposed to storm surge and flooding.

As such, the biggest concerns are insurance and health care access. Cedar Key has limited local medical facilities, meaning hospital visits and specialist appointments may require a substantial drive.

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Bottom line

The best Southern retirement destination isn't always the one with the lowest home price or the most favorable tax rules.

To stretch your retirement dollars further, get an insurance quote for the exact property and a tax estimate based on your circumstances before making an offer. Those two numbers can reveal whether a seemingly budget-friendly town will remain affordable throughout retirement.

Also, visit the community outside of its tourist season. Walker suggests experiencing a destination during the hottest part of the year and again in the off-season to see traffic patterns, community fees, maintenance costs, and the realities of everyday life for yourself.

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