Key Takeaways
- Houston offers retirees affordable housing, with a median home price of $292,500 as of February 2026, and a cost of living 7% below the national urban average.
- Texas does not impose state income taxes, making retirement income from Social Security, pensions, IRAs, and 401(k)s tax-free.
- Houston provides a mix of urban and suburban lifestyles, world-class healthcare, and diverse cultural and recreational amenities.
There’s urban living…and then there’s urban living. Everything you could want or need to create a comfortable retirement is at your doorstep in Houston, Texas. But Houston is a massive metro area where all that convenience comes with the busy hum of city activity. Houston defines urban living on its own terms, and it was named one of Investopedia’s top 100 places to retire in America.
Houston’s affordability will stretch your retirement dollars, and it offers warm weather and world-class amenities. It also boasts one of the most diverse ethnic populations of any major U.S. city.
Cost of Living & Housing
The median sale price for a Houston home was $292,500 as of Feb. 28, 2026, notably affordable for a major metro area. And a significant 72.5% of homes sold for less than the list price. The cost of housing here is 20% less than the national average.
The Heights neighborhood and the West U/Rice Village area offer a nice range of single-family homes. The Memorial/Energy Corridor in West Houston is home to several subdivisions and well-established neighborhoods. The Galleria/Bellaire neighborhood provides a range of condo and high-rise options…