Scarlet Oak economic strategist and wealth manager Frances Newton examines market conditions and the Federal Reserve’s ‘Money Making.’
An estimated 6.5 million Americans will retire by 2026. Are you one of them? If so, you’ve probably started considering where to settle down and spend your golden years. You may even consider buying a home in 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 affordable. To find the 20 best and 20 worst housing markets for retirees in 2026, GOBankingRates found various markets in Zillow Research Data and cross-referenced that information with household values and retirement income levels from the US Census. From that matrix, GOBankingRates was able to find the 20 best housing markets for retirees in 2026 — and the 20 housing markets to avoid in 2026 retirement.
TRUMP ANNOUNCES PLAN TO BLOCK COLLEGE LEAVES FROM BUYING SINGLE FAMILY HOMES
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 top 20 cities with five introductions (Michigan comes in second with four cities).
- Retirees flock to Sandusky, Ohio: About 32.9% of Sandusky families receive retirement income – more than any other city in the top 20. That makes Sandusky a thriving town for retired homeowners.
1. Saginaw, Michigan
- 1-year forecast for % change in home value: 4.9%
- Percentage of households with retirement savings: 32.9%
- % of income needed for new home: 22%
- Income needed to get a 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 for % change in home value: 0.11%
- Percentage of households with retirement savings: 4.5%
- % of income required for new home: 20%
- Income needed to get a new home: $47,546
3. Kokomo, Indiana
- 1-year forecast for % change in home value: 4.2%
- Percentage of households with retirement savings: 32.2%
- % of income needed for new home: 22%
- Income needed to get a new home: $49,883
HOUSING MARKET EXPECTED TO PROVIDE LITTLE SUPPLY TO BUYERS IN 2026 DESPITE BETTER DEVELOPMENT
4. Bay City, Michigan
- 1-year forecast for % change in home value: 4.2%
- Percentage of households with retirement savings: 31.7%
- % of income needed for new home: 22%
- Income needed to get a new home: $49,692
5. Midland, Michigan
- 1-year forecast for % change in home value: 4.3%
- Percentage of households with retirement savings: 33.9%
- % of income needed for new home: 23%
- Income needed to get a new home: $62,612
A for sale sign is displayed outside a home for sale on August 16, 2024 in Los Angeles, Calif. This area ranks as one of the worst markets for retirees. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)
Key Findings for Worst Markets
- California has a very bad housing market: California has a very poor housing market for retirees – in particular, San Jose.
- The Golden State dominates the bottom 20: Not only does California have the worst housing market for retirees in 2026, but its cities make up the majority of the bottom 20 markets, with 11 cities in total.
- Hawaii also has a rocky retirement: Hawaii – often ranked as one of the most expensive states in America – has two of the worst housing markets for 2026 for retirees: Honolulu and Kahului.
1. San Jose, California
- 1-year forecast for % change in home value: 0.8%
- Percentage of households with retirement savings: 18.9%
- % of income needed for new home: 62%
- Income needed to get a new home: $368,861
THESE 10 MARKETS COULD SEE THE BIGGEST HOME BUYERS AS FORECAST RATES FALL.
2. San Francisco, California
- 1-year forecast for % change in home value: -1.6%
- Percentage of households with retirement savings: 22.2%
- % of income needed for new home: 56%
- Income needed to get a new home: $268,428
3. Santa Cruz, California
- 1-year forecast for % change in home value: 1.2%
- Percentage of households with retirement savings: 25.8%
- % of income required for new home: 70%
- Income needed to get a new home: $266,158
The downtown Los Angeles skyline during a sunny day with views of office buildings and neighborhoods. (Simonkr/Getty Images)
4. Los Angeles, California
- 1-year forecast for % change in home value: 1.2%
- Percentage of households with retirement savings: 17.9%
- % of income needed for new home: 67%
- Income needed to get a new home: $226,556
5. Salinas, California
- 1-year forecast for % change in home value: 0.4%
- Percentage of households with retirement savings: 22.4%
- % of income needed for new home: 61%
- Income needed to get a new home: $200,578
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Methodology: New Homeowner Affordability, New Homeowner Income Required, Zillow Home Price Forecast, and Zillow Home Price Index were obtained from Zillow Research data for each housing market. Households with retirement incomes are derived from the US Census 2023 5-year ACS. One-year home value forecast was scored and weighted at 1.00, percent of households receiving retirement income was scored and weighted at 1.00, new home owner affordability was scored and weighted at 1.00, and required new home owner income was scored and weighted at 1.00. All data were taken and tabulated in Dec. 18, 2025.
