Midwest dominates 2026 best retirement housing markets for home buyers

By Finance News On Jan 8, 2026

Scarlet Oak economic strategist and wealth manager Frances Newton assesses the state of the market and the Federal Reserve’s strategy on ‘Making Money.’

An estimated 6.5 million Americans will retire in 2026. Are you one of them? If so, you’ve likely already begun to consider where you might settle down and spend your golden years. You might even be considering buying a home just for your retirement.

Before you make that leap, it’s good to know which housing markets are expected to be strong in 2026 and which are expected to be unaffordable. To determine the 20 best and 20 worst housing markets for retirees in 2026, GOBankingRates sourced various markets from Zillow Research Data and cross-referenced that information with household values and retirement income levels from the U.S. Census. From that matrix, GOBankingRates was able to locate the 20 best housing markets for retirees in 2026 — and the 20 housing markets you should avoid in your 2026 retirement.

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Key Findings for Best Markets

The Midwest fills the top 20: Cities in Illinois, Indiana, Michigan, Ohio and Wisconsin are home to 15 of the 20 best housing markets for retirees in 2026.
Ohio dominates the market: Ohio cities appear more than any other state’s cities in the top 20 with five entries (Michigan comes in second with four cities).
Retirees are gathering in Sandusky, Ohio: Approximately 32.9% of households in Sandusky receive retirement income — more than any other city in the top 20. That makes Sandusky a boomtown for retired homeowners.

1. Saginaw, Michigan

1-year forecast of % change in home value: 4.9%
% of homes with retirement income: 32.9%
% of income required for new home: 22%
Income required to afford new home: $48,048

A “For Sale” sign on a house in Philadelphia, Pa., on Friday, Aug. 16, 2024. (Joe Lamberti/Bloomberg via Getty Images / Getty Images)

2. Mansfield, Ohio

1-year forecast of % change in home value: 0.11%
% of homes with retirement income: 4.5%
% of income required for new home: 20%
Income required to afford new home: $47,546

3. Kokomo, Indiana

1-year forecast of % change in home value: 4.2%
% of homes with retirement income: 32.2%
% of income required for new home: 22%
Income required to afford new home: $49,883

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4. Bay City, Michigan

1-year forecast of % change in home value: 4.2%
% of homes with retirement income: 31.7%
% of income required for new home: 22%
Income required to afford new home: $49,692

5. Midland, Michigan

1-year forecast of % change in home value: 4.3%
% of homes with retirement income: 33.9%
% of income required for new home: 23%
Income required to afford new home: $62,612

A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, Calif. The location ranked as one of the worst markets for retirees. (PATRICK T. FALLON/AFP via…