Florida Is Getting Too Expensive to Retire In, and These States Are Where Retirees Are Heading Instead

For decades, retiring in Florida was the plan: sell the house up north, chase the sun, and settle into a low-tax coastal life. That blueprint is losing its shine. Florida still drew more retirees 65 and older than any other state in 2025, nearly 46,000, but almost as many left, leaving a razor-thin net gain of just 815, according to moving data from HireAHelper. A new wave of destinations is now drawing them instead.

Insurance and Living Costs Are Driving the Exodus

Home prices aren’t the only thing squeezing Florida retirees. A Wall Street Journal analysis found the state has become financially out of reach for many retirees earning $75,000 or less. Insurance costs are a major factor. Nationally, homeowners insurance averages $2,110, but many Florida policies run close to five times that amount, according to 1-800-Insurance. Repeated hurricanes, widespread fraud and litigation, and a shrinking pool of insurance carriers have all contributed to the spike.

Where Florida’s Retirees Are Relocating

South Carolina posted the largest net gain of retirees in 2025, followed by Texas, North Carolina, and Tennessee, according to HireAHelper. These three states also rank among the top destinations for Florida transplants in a 2024 report from the state’s chamber of commerce. Each offers its own mix of lower costs, favorable tax rules, and healthcare access that retirees are weighing against what Florida once promised.

South Carolina Is Becoming a Hub for ‘Halfbacks’

Retirees who once left the Northeast for Florida are now moving again, a group researchers call “halfbacks” because they settle somewhere between the two. Joey Von Nessen, a research economist at the University of South Carolina’s Darla Moore School of Business, says the group moving into South Carolina is broadening. “They just stopped off in Florida first, and then moved to South Carolina,” he says. Most new arrivals come from North Carolina, Florida, and New York.

Texas Offers Sun and No Income Tax

Texas ranks No. 11 in the nation for cost of living and beats Florida on grocery, housing, and transportation prices. It’s one of just nine states that skip income tax altogether, so 401(k) and IRA withdrawals go untaxed, unlike in 41 other states. The tradeoff shows up in healthcare, where Texas has among the worst Medicare performance scores in the country. Its coastline, meanwhile, stretches 3,300 miles, according to data compiled by The Independent.

North Carolina Balances Costs and Care

North Carolina is the only state among the three to rank in the top 30 for cost of living, Medicare, and taxes, ranking No. 26, 14th, and 22nd, according to data compiled by The Independent. Its income tax rate is 4.25 percent, with property and sales taxes near the national norm, per the Tax Foundation. It was the top destination for Florida transplants from 2019 to 2024, per the Florida Chamber of Commerce.

Tennessee Wins on Taxes and Grocery Bills

Tennessee also charges no state income tax, so 401(k) and IRA withdrawals stay untouched, just as in Texas. It ranked No. 8 nationally for cost of living, with strong marks for everyday costs like groceries, utilities and transportation, and its Medicare performance, ranked 39th, edges out Florida’s. Tennessee seniors also average 97.6 active minutes daily, placing the state among the top 20 for senior activity, according to Choice Mutual.

Housing Costs Remain Florida’s Biggest Complaint

Housing costs remain a leading frustration for Florida retirees. In a Florida Atlantic University survey, half of respondents said rising costs alone could push them to leave. Julia Donovan, a broker with Coldwell Banker Commercial in Charleston, South Carolina, says property tax, insurance, and HOA fees compound the burden. “You always have to pay those; the number changes, but the fact that you have to pay doesn’t change,” she says.

The Southeast Braces for a Bigger Wave

The shift toward the Southeast may just be getting started. Joey Von Nessen expects the region’s growth to keep building, projecting the Southeast will see more population growth than any other part of the country over the next 20 to 30 years. South Carolina, he notes, has long marketed itself to retirees, giving it a higher share of older residents than the Southeast average. The question is whether housing supply can keep pace with rising demand.

Affordability, Not Geography, Is Driving the Search

For many retirees, the move away from Florida isn’t about abandoning the Sunbelt; it’s about finding a better balance. Von Nessen calls affordability a relative term, one that’s still working in South Carolina’s favor from a national perspective. As more retirees weigh fixed incomes against rising costs, the search for an affordable place to settle down looks likely to keep reshaping where America’s retirees choose to call home.