Key Takeaways
- The cost of living in Eagle Pass, Texas, is almost 18% less than the national average.
- Amarillo, Texas, is known for its farmers’ markets and can save you some money on groceries.
- Arizona doesn’t levy Social Security, inheritance, or estate taxes.
- The cost of living in Albuquerque, New Mexico, is 3% less than the national average, and housing is 9% lower.
- Oklahoma has some of the lowest property taxes in the country and provides some exemptions for seniors.
The Southwest might be whispering your name if your vision of a pleasant retirement includes plenty of sunshine. The natural scenery in many areas is spectacular, and this area of the country tends to be senior-friendly. These are Investopedia’s top choices for the best retirement locations in the southwestern United States.
Eagle Pass, Texas
Let’s look at dollars and cents first. The cost of living in Eagle Pass is 17.8% less than the national average. U.S. News & World Report ranked the town first—yes, No. 1—on its list of the cheapest places to retire in the United States in 2025 and 2026. And that was after visiting and gauging 859 cities. The median household income here is $58,119. Half of all households enjoy more income than this, and half make ends meet on less.
It’s a medium-sized town in Maverick County, so you won’t be battling crowds if you want to take in its Art and Entertainment District that covers 300 blocks. Eagle Pass is the county seat, tucked up against the Mexican border, and its history is rich. The Texas Mounted Volunteers manned an operation post here on the Rio Grande during the Mexican-American War, located beside a smuggler’s trail that once spanned the river.
Stop by the Lucky Edge Casino if you’re looking for more modern entertainment. It’s the only casino in the state, hosted by the Kickapoo Tribe and located just across the town border.
Amarillo, Texas
Over 15% of Amarillo’s citizens are age 65 or older, so you’ll have some company when you’re enjoying the numerous activities and events that this small city offers. Art is a big theme here, and you can take in various classes and workshops at Arts in the Sunset provided by the Amarillo Art Institute. Local artists are present in its studios…