This article takes a look at the 15 cities in the Northeast to retire on $3000 a month. If you wish to skip our detailed analysis on navigating the Northeast, you may go to 5 Cities in the Northeast to Retire on $3000 a Month.

Navigating the Northeast: Trends in Retirement Relocations and Housing Affordability

Fixed incomes can't go far in retirement. Therefore, it is only wise for the average retiree to pack up and relocate to cheaper localities. According to Smart Asset, expensive northeast cities are witnessing the most declines when it comes to relocations. California experienced a net loss of 71,828 residents, New York saw a decline of 46,709 people, and Massachusetts recorded a decrease of 8,747 individuals. Even Pennsylvania, one of the best states to retire in the northeast, faced a net loss of 6,808 people.

The Northeastern region comprises nine states, namely Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, and Pennsylvania. Not only is it famous for job seekers and students, but retirees and families have also been pursuing many areas within this region over the years. However, the recent years have witnessed a distinct shift, marked by a housing crisis and a notable lack of affordability in various areas within this region.

The real question that arises out of this situation, however, is where residents are flocking to after leaving such big metros. According to Zillow Group, Inc. (NASDAQ:Z), small cities and towns in the Northeast are dominating the market these days.

In particular, Zillow Group, Inc. (NASDAQ:Z) noted the most popular town on its 2023 list of most popular markets to be West Chester, Pennsylvania. The town saw a surge in demand because of its affordability compared to larger markets such as those in New York and Washington. Besides its affordability, the township is also quite safe and friendly to retire to.

Regardless of where people have been relocating to, Redfin Corporation (NASDAQ:RDFN) notes that 2023 has been the least affordable year to buy a home. As per their records, a typical home buyer in 2023 needs at least $109,868 to avoid spending more than 30% of their income on housing expenses of a median-priced home.

Even though 2023 has been an overall gloomy year for home buyers, things are finally looking up as we head into the year 2024. Analysts at Morgan Stanley (NYSE:MS) believe that mortgage rates in the US will likely fall, incomes will rise, and there will be an uptick in listings that will eventually bring down home prices.

Given the "trajectory of the economy and mortgage rates", home buyers are in for even lower home prices in the year 2025, Morgan Stanley (NYSE:MS) further clarifies. Hence, it can be asserted that prospective home buyers are poised to experience more favorable conditions in the years ahead. With that said, let’s check out which cities are still affordable for retirees to flock to at the moment.

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Methodology

To compile the list of cities in the Northeast to retire on $3000 a month, we have used several sources such as our list of best cities to retire in the Northeast, as well as websites such as Smart Asset, Finance Buzz, US News Real Estate, and Kiplinger. We also used forums such as Reddit and Quora to assess what cities retirees are preferring to move to in the Northeast.

Next, we excluded cities that had a higher cost of living than the national average. Retirees can live on $3000 in cities with a cost of living index of 100 or lower. A cost of living index of 100 implies that living expenses are on par with the national average ($3000), while a figure of 99 implies that living costs are 1% lower than the national average.

Next, we determined and scored our list based on their median home price, their average rent, and their cost of living index. After scoring each city individually on these factors, we totaled their scores and arranged them in ascending order from the lowest to the highest. Cost of living has been sourced from Best Places, whereas Redfin Corporation (NASDAQ:RDFN), Zillow Group, Inc. (NASDAQ:Z), and Realtor have been used to determine average rents for a 1-bedroom apartment and the median home price.

Here are the cities in the Northeast to retire on $3000 a month:

15. Keene, New Hampshire

Insider Monkey Score: 7

Cost of Living Index: 92.1

Median Home Price: $336,000

Average Monthly Rent: $1,550

One of the best places to retire in New Hampshire is Keene. Revered for its charming small-town vibe, this college city is brimming with fun activities for retirees, their families, and even grand-kids. Outdoor enthusiasts will especially love it here because of Keene's access to nature spots and parks. Horatio Colony Nature Preserve and the Greater Goose Pond Forest are within the city, while the Green Mountain National Forest is only an hour away.

14. Bethlehem, Pennsylvania

Insider Monkey Score: 8

Cost of Living Index: 97

Median Home Price: $276,000

Average Monthly Rent: $1,650

One of the best cities in the Northeast to retire on $3000 a month is Bethlehem, Pennsylvania. Besides its reasonable cost of living, the city is revered for its good air quality, its walkability, and also the low crime rate. St. Luke's University Health Network and Lehigh Valley Health Network are some reputable health facilities here, and the city also boasts above-average physicians per capita.

13. Springfield, Massachusetts

Insider Monkey Score: 9

Cost of Living Index: 96.2

Median Home Price: $294,000

Average Monthly Rent: $1,358

When contemplating retirement, Springfield stands out as one of the best places to retire on the East Coast. From Six Flags and Dr. Seuss National Memorial Sculpture Garden to the Naismith Memorial Basketball Hall of Fame, there are lots of things to do for seniors. The city also boasts a vibrant downtown, many top-rated health institutions, cultural establishments, and numerous scenic parks to relish nature and fresh air.

12. Pittsfield, Massachusetts

Insider Monkey Score: 11

Cost of Living Index: 95.9

Median Home Price: $304,000

Average Monthly Rent: $1,245

Huddled in the picturesque Berkshire Mountains, Pittsfield is another top-rated city in the northeast to retire on $3,000 a month. The cost of living in the city is 4.1% lower than the national average, while rents and home prices are below the national average as well. Retirees don’t have to pay tax on their social security, but all other retirement income is subject to taxes in the state. Indeed, Pittsfield offers a dynamic experience, boasting activities like skiing in the Bousquet Mountains, hiking along the Appalachian Trail, and discovering cultural gems such as the Shaker Village.

11. Auburn, Maine

Insider Monkey Score: 12

Cost of Living Index: 90.8

Median Home Price: $325,000

Average Monthly Rent: $1,281

Maine may not be the ideal state to retire to when it comes to taxes, but seniors love it in Auburn for all that it offers. This city is an awesome place in the northeast to retire on $3000, especially for those who wish for fun and excitement in their golden years. Brimming with shops, restaurants, and similar establishments, the fun-filled vibe is unmatched. There are many outdoor spots to relax and enjoy the outdoors as well. Breweries and golf courses make the city all the merrier.

10. North Adams, Massachusetts

Insider Monkey Score: 20

Cost of Living Index: 95.9

Median Home Price: $203,000

Average Monthly Rent: $950

North Adams can be a great place to retire for seniors who wish to live a fulfilled life on a budget. More than 17% of residents are retirees in this city, making it a nice hub for socializing and making friends. Restaurants, shopping centers, and libraries are spread throughout the city. Home to the Massachusetts Museum of Contemporary Art (MASS MoCA), one of the largest art museums in the country, seniors love the artistic vibe that this city offers as well.

9. Allentown, Pennsylvania

Insider Monkey Score: 21

Cost of Living Index: 85.6

Median Home Price: $240,000

Average Monthly Rent: $1,211

Pennsylvania is one of the few tax-friendly states to retire to in the Northeast, and Allentown can be a great choice for seniors within this region. The cost of living in the city is 13.4% lower than the national average, making it an affordable place to retire on the East Coast. Seniors are particularly drawn to this city for its exceptional quality of life, dynamic lifestyle, and affordable housing options. The weather is great too, with winter temperatures averaging 20 degrees Fahrenheit and summer around 70 degrees Fahrenheit.

8. Lebanon, Pennsylvania

Insider Monkey Score: 22

Cost of Living Index: 90.2

Median Home Price: $265,000

Average Monthly Rent: $938

Retirees choose Lebanon, Pennsylvania mainly for the tax and cost-of-living benefits of the state and city combined. The living expenses in the city are 9.8% lower than the national average, while rents and housing are very affordable too. The city is also revered for its cultural and historical charm, and there are many museums and cultural events to explore. Parks, trails, and natural spaces make it all the more appealing for nature enthusiasts.

7. Millville, New Jersey

Insider Monkey Score: 23

Cost of Living Index: 85.6

Median Home Price: $237,000

Average Monthly Rent: $1,156

When it comes to taxes and retirement, New Jersey is only moderately tax-friendly. While social security isn’t taxed, other types of retirement income are. Nevertheless, Millville can be a nice place to retire because of its artistic charm, historical value, and small-town atmosphere. Located on the Maurice River, seniors can enjoy the scenic views and many parks to stay fit and fresh. There are plentiful local wineries to explore as well.

6. Erie, Pennsylvania

Insider Monkey Score: 30

Cost of Living Index: 80.8

Median Home Price: $165,752

Average Monthly Rent: $952

Erie makes it to our list of cities in the northeast to retire on $3000 a month because of its affordability, small-town charm, and outdoor access. Nestled along the shores of Lake Erie, seniors get to enjoy its waterfront views and the many recreational opportunities it brings along. Seniors can enjoy ice fishing, or take their grand-kids and kids for ice skating as well. They can engage in learning opportunities at Gannon University or Mercyhurst University. Meanwhile, the Presque Isle State Park is also a great way to spend time on beaches, boating and trails, and nearby camping.

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Disclosure: none. 15 Cities in the Northeast to Retire on $3000 a Month is originally published on Insider Monkey.