One of the most important factors to have figured out before retirement is where to live. According to a June 2025 Bankrate study, the average annual cost of homeownership in the U.S. is around $21,400. This includes internet and cable, maintenance, taxes, insurance, your energy bill, and utilities. Thanks to inflation, a competitive housing market, and higher interest rates, many homeowners have learned the hard way how much just a 1% difference in mortgage rate can cost or save you.
Whether you’re surviving on a fixed retirement income or have a little more leeway, choosing a retirement community that includes all the basics of independent living — community, meals, and activities — may be a worthwhile investment. With the average cost of healthcare causing many seniors to stress over whether they can afford medical care in the next decade, the retirement community chosen can either ease or increase your burden. As per KFF, the average yearly health insurance premium in 2024 was roughly $8,951 for an individual, and $25,572 for a family, representing an increase of 6% and 7% respectively. The national median cost of an independent community in the U.S., as per A Place for Mom, is $3,145 per month. However, state medians can be as low as $2,250 or as high as $5,650 per month. You’d do well to keep this in mind before settling on an overpriced retirement community.
Highland Park, Illinois
As per GoBankingRate’s study of the most expensive retirement communities in the U.S., Highland Park, Illinois, fits the bill. Surprisingly, over a quarter of the population is 65 years old and above, in a state where the annual cost of home ownership sits around $65,989 per year. Remember, the average annual cost of homeownership nationwide is $21,400, making it more than three times as expensive to own a home on an annual basis. Comparing the average home value of $713,464 in Highland Park with Redfin’s May 2025 median sale price of homes — that’s $441,738 — it might be better to consider cheaper, or at least more balanced, housing opportunities elsewhere in Illinois.
As per a Place for Mom, the median monthly cost of independent living in Highland Park, Illinois is $5,935, while the average for the state is $4,394, with a national median of $2.900. Whether you buy a home or live in a community in Highland Park, you’ll spend more just on housing than you need to.
Boca Raton, Florida
While Florida is a known capital for retirement in the U.S., there are a few Florida cities where buying a home will cost you, and Boca Raton is one of them. Another large population of seniors makes up 25.7% of the community in spite of home prices a little higher than the aforementioned Highland Park. At $734,478, nearing ¾ of a million dollars, it’s almost $300,000 above the national median of $441,738. This amounts to an average annual mortgage of $46,391. As per The Mortgage Bankers Association (MBA), the national median mortgage payment as of April 2025 is $2,186, or $26,232 per year. That means you’ll pay over $20,000 more on your mortgage per year in Boca Raton than elsewhere. Annual housing costs of $69,451 are over three times the national average of $21,400…