When Moving for a Cheaper Retirement Isn’t So Cheap
For years, maybe even decades, you’ve had a vision: retire from work, sell your home, and move somewhere “cheaper.” A smaller town. Lower property taxes. Maybe even a charming home near the mountains or a sunny spot closer to the grandkids. The plan sounded solid—and it was, once.
But now you’re looking around and wondering, What happened to the affordable retirement dream?
The New Reality of “Cheaper Living”
You’re not imagining it—homes across the country have gotten more expensive. Whether it’s Idaho, Utah, Nevada, Arizona, or Tennessee, the places that used to be “hidden gems” are now high-demand markets. And if you’ve looked at mortgage rates lately, you’ve seen another layer of sticker shock. Gone are the days of 3% loans. Today’s buyers are facing rates closer to 7%, making any new home purchase significantly more expensive, even if the sticker price is lower than your current home.
So now you’re caught between two difficult choices:
Stick to the original plan and move, knowing that the cost savings may not materialize.
Rethink everything—stay put or even work longer than expected.
Neither feels simple. But you’re not alone in facing this crossroads, and there are thoughtful ways to move forward.
Why It’s Not Just About Housing Prices
When we talk with clients at Parkshore Wealth Management here in California and Utah, we often hear the same concern: “We thought we’d downsize and stretch our retirement dollars. But where we planned to move is no longer cheap.”
It’s not just the housing market. It’s the cost of everything:
Property taxes in your new state might be higher than expected.
Healthcare access may be more limited in smaller towns.
Homeowner’s insurance premiums, especially in places prone to floods, wildfires, or hurricanes, have gone up significantly.
Capital gains taxes may apply if your home has appreciated substantially, potentially reducing the net proceeds from your sale.
Moving costs—including repairs on your current home, closing fees, and relocation expenses—can easily add tens of thousands of dollars to your plan.
All these factors can chip away at the financial benefit of moving.
Rethinking the Plan: Questions to Ask Yourself
Before throwing out your retirement strategy or locking into a new one, take a step back and reflect on a few key questions:
What was the goal of moving in the first place? Was it purely financial, or did lifestyle, proximity to family, or climate play a big role?
Are you planning to buy with cash or take out a mortgage? High interest rates may dramatically increase your monthly costs if you’re financing.
Have you considered the full picture of state taxes? For example, California has progressive income tax rates, while Utah has a flat tax of 4.55%. That means, depending on your situation—especially if your household income falls somewhere between $100,000 and $200,000—you might actually pay less in California than Utah. Also, California’s property tax rules can be more favorable for longtime homeowners. The rule of thumb is to consider your total tax burden, not just income tax rates.
What would it cost to age in place instead? Staying in your current home might require renovations to make it more senior-friendly, but those upgrades could still be less expensive than a full-scale move.
Working Longer: A Hidden Advantage?
Nobody likes the idea of delaying retirement, especially after decades of hard work. But working longer—even part-time—can have major upsides:
Your investments have more time to grow, potentially offsetting inflation and market volatility.
You spend fewer years withdrawing from your retirement savings, which can reduce the risk of outliving your money.
Delaying Social Security (up to age 70) increases your benefit significantly.
Even working just two to three more years might mean the difference between scraping by and retiring with comfort and flexibility.
Staying Put with Confidence
Here’s a truth that might surprise you: For many people, staying in place is not just the fallback option—it might be the better option.
If your home is mostly paid off, if you like your community, and if you’re close to health care and family, staying can offer both emotional and financial stability. You could consider a “retire in place and travel” model—stay in your current home and rent for a few months each year in a dream destination, without the hassle of relocating full-time.
Or, if you’re committed to moving but wary of buying in a high-cost market, consider renting first. It lets you explore new areas, avoid high mortgage rates, and stay flexible.
You Don’t Have to Navigate It Alone
Retirement planning isn’t about making perfect predictions—it’s about building a plan that adapts as your life and the world change.
At Parkshore Wealth Management, we’ve helped many individuals evaluate these big decisions as part of their overall financial planning. Sometimes that means crunching the numbers. Sometimes it means listening closely to their values and goals. Often, it’s both.
The key takeaway? A move that once made sense on paper may no longer serve your financial or emotional well-being. That’s okay. Plans evolve. Markets change. What matters is building a retirement you feel good about—whether that’s across the country or right where you are.
Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor today to discuss your personal situation.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Granite Bay and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.