Midwest dominates 2026 best retirement housing markets for home buyers

An estimated 6.5 million People will retire by 2026. Are you one in every of them? In that case, you’ve got in all probability already began excited about the place you would possibly quiet down and spend your golden years. It’s possible you’ll even be contemplating shopping for a home only for retirement.

Earlier than you make that leap, it is good to know which housing markets are anticipated to be sturdy in 2026 and that are anticipated to be unaffordable. To find out the 20 finest and 20 worst housing markets for retirees in 2026, GOBankingRates pulled a number of markets from Zillow Analysis Information and in contrast that data to family values ​​and retirement revenue ranges from the US Census. Based mostly on that matrix, GOBankingRates was in a position to pinpoint the 20 finest housing markets for retirees in 2026 – and the 20 housing markets to keep away from in retirement in 2026.

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Key findings for the very best markets

• The Midwest fills out the highest 20: Cities in Illinois, Indiana, Michigan, Ohio and Wisconsin are residence to fifteen of the 20 finest housing markets for retirees in 2026.
• Ohio dominates the market: Ohio cities seem greater than another state’s cities within the prime 20 with 5 entries (Michigan is second with 4 cities).
• Retirees are converging in Sandusky, Ohio: About 32.9% of households in Sandusky obtain retirement revenue – greater than another metropolis within the prime 20. That makes Sandusky a boomtown for retired householders.

1. Saginaw, MI

• 1-year forecast of % change in residence worth: 4.9%
• % of properties with pension revenue: 32.9%
• % of revenue wanted for brand new residence: 22%
• Earnings required to afford a brand new residence: $48,048

A “For Sale” signal on a house in Philadelphia, Pennsylvania, on Friday, August 16, 2024. (Joe Lamberti/Bloomberg through Getty Photographs/Getty Photographs)

2. Mansfield, Ohio

• 1-year forecast of % change in residence worth: 0.11%
• % of properties with pension revenue: 4.5%
• % of revenue required for brand new residence: 20%
• Earnings required to afford a brand new residence: $47,546

3. Kokomo, Indiana

• 1-year forecast of % change in residence worth: 4.2%
• % of properties with pension revenue: 32.2%
• % of revenue wanted for brand new residence: 22%
• Earnings required to afford a brand new residence: $49,883

HOUSING MARKET IS EXPECTED TO PROVIDE LITTLE RELIEF FOR BUYERS IN 2026, DESPITE AVAILABLE IMPROVEMENTS IN THE AREA

4. Bay Metropolis, Mich

• 1-year forecast of % change in residence worth: 4.2%
• % of properties with pension revenue: 31.7%
• % of revenue wanted for brand new residence: 22%
• Earnings required to afford a brand new residence: $49,692

5. Midland, MI

• 1-year forecast of % change in residence worth: 4.3%
• % of properties with pension revenue: 33.9%
• % of revenue wanted for brand new residence: 23%
• Earnings required to afford a brand new residence: $62,612

A on the market signal is displayed exterior a home on the market on August 16, 2024 in Los Angeles, California. The situation is ranked as one of many worst markets for retirees. (PATRICK T. FALLON/AFP through Getty Photographs/Getty Photographs)

Key findings for the worst markets

• California has the worst housing market: California has the housing market that’s least pleasant to retirees – particularly San Jose.
• The Golden State dominates the underside 20: Not solely does California have the worst housing marketplace for retirees in 2026, however its cities additionally make up the vast majority of the underside 20 markets, with 11 cities in complete.
• Hawaii additionally makes for robust retirements: Hawaii – usually ranked as one of the costly states in America – has two of the worst housing markets for retirees in 2026: Honolulu and Kahului.

1. San Jose, California

• 1-year forecast of % change in residence worth: 0.8%
• % of properties with pension revenue: 18.9%
• % of revenue wanted for brand new residence: 62%
• Earnings required to afford a brand new residence: $368,861

THESE 10 MARKETS COULD SEE THE BIGGEST RISE IN HOME BUYING AS MORTGAGE PRICES FALL

2. San Francisco, California

• 1-year forecast of % change in residence worth: -1.6%
• % of properties with pension revenue: 22.2%
• % revenue wanted for brand new residence: 56%
• Earnings required to afford a brand new residence: $268,428

3. Santa Cruz, California

• 1-year prediction of % change in residence worth: 1.2%
• % of properties with pension revenue: 25.8%
• % of revenue wanted for brand new residence: 70%
• Earnings required to afford a brand new residence: $266,158

Los Angeles metropolis skyline throughout a sunny day with views of workplace buildings and neighborhoods. (Simonkr/Getty Photographs)

4. Los Angeles, California

• 1-year prediction of % change in residence worth: 1.2%
• % of properties with pension revenue: 17.9%
• % revenue wanted for brand new residence: 67%
• Earnings required to afford a brand new residence: $226,556

5. Salinas, California

• 1-year forecast of % change in residence worth: 0.4%
• % of properties with pension revenue: 22.4%
• % revenue wanted for brand new residence: 61%
• Earnings required to afford a brand new residence: $200,578

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Methodology: New House owner Affordability, New House owner Earnings Necessities, Zillow House Worth Forecast, and Zillow House Worth Index come from Zillow Analysis Information for every housing market. Households with retirement revenue are from the US Census 2023 5-year ACS. The one-year residence worth forecast was scored and weighted at 1.00, the proportion of properties receiving retirement revenue was scored and weighted at 1.00, the affordability of latest householders was scored and weighted at 1.00, and the revenue wanted for brand new householders was scored and weighted at 1.00. All information have been collected on December 18, 2025 and introduced in tabular kind.