Why This North Carolina City Tops the List for Budget-Friendly Retirement Destinations | Global News Avenue

When it comes to affordable retirement living in the South, Hickory, NC ticks many of the important boxes retirees care about. You may not have heard of this small city with a population of 43,490, but it has one of the lowest housing costs in the South and favorable tax treatment.

Just a short drive from Charlotte, Hickory has a warm, small-town atmosphere and offers an abundance of activities for those seeking an active lifestyle.

Although Hickory’s median age is on the younger side (37.9 years), 16.9% of the population is 65 years or older. Additionally, as more and more retired seniors head south, don’t be surprised if Hickory becomes a popular destination for its unique combination of natural beauty, downtown fun, and affordable living.

Below average cost of living

One of the main reasons Hickory, NC ranks sixth in our Best Places to Retire in the South report is its very affordable median monthly housing cost. Hickory residents pay an average of $960 per month for housing, which is 17% lower than the average monthly housing cost of $1,163 across the Southland.

Renters can also find apartments starting at $1,000 per month, well below the national median of $1,382 (as of December 2024). Even at Hickory’s median income of $58,251 (less than the national average of $77,540), only about 20 percent of your income is needed to cover minimum rent, leaving some wiggle room for retirees on their fixed budgets.

Why this is the key to an affordable retirement

people are retire Regular income is usually earned from a combination of social Security, pensionor retirement account distributions. Since housing costs are the largest expense in the budget, accounting for about 23% of a retiree’s income on average, the less you pay for housing, the more income you have at your disposal.

Given that Hickory’s median monthly housing costs are well below average, whether you own a home or rent, life remains affordable for those who retire there.

low property taxes

In Catawba County, where Hickory is located, the county tax rate is 0.700%. For a home worth $285,180 (which is the average price in Hickory), that’s about $1,996 per year.

Coupled with lower overall housing costs, having a reasonable property tax can make living on retirement income more manageable.

Why this is the key to an affordable retirement

Property taxes can be a sneaky budget killer, depending on where you live. Even if you have paid off your home mortgage, ongoing property taxes (which tend to increase over time) are still your responsibility. Take a state like New Jersey, which has the highest state and local property tax rate in the country at 2.08%, and you can see how this can quickly eat into your income. North Carolina’s tax rate ranks 36th in the nation.

Below average income tax

North Carolina is one of only 12 states with a flat personal income tax rate on all income, and the rate is just 4.5%. Although not necessarily the lowest income tax There, especially since some states don’t impose any income tax at all, this is still an important factor to consider if you’re relocating from a state with higher taxes. For reference, states like Minnesota and Oregon have top tax rates closer to 10%.

Additionally, North Carolina’s average combined state and local sales tax rate is 7.0%; the state ranks 27th in the nation. That puts it in the middle of the pack nationally, but it’s one of the best rates in the South. For example, Alabama’s combined tax rate is 9.29%, while Tennessee’s combined tax rate is 9.55%.

Why this is the key to an affordable retirement

A flat tax rate provides predictability, which can be especially beneficial to you if you have a higher income in retirement. In other states, your tax rate increases if your income exceeds a certain income threshold. However, if you don’t earn much in retirement, you may have an easier time finding a state with lower income taxes.

reduce sales tax This is another factor that can help your money go further, making it even tighter when you’re buying everything from groceries to gas to household items. While North Carolina’s sales tax may not be the lowest in the country, it’s better than many other states. As with other aspects of retirement finance, the best strategy is to look at your current state income tax rate and compare it to North Carolina’s rate to see if you would come out ahead.

Other Surprising Benefits Hickory, NC Offers to Retirees

Hickory is one of those places where the slogan “location, location, location” rings true. Located along the Catawba River near Charlotte, Hickory is a hidden gem surrounded by nature, including the beauty of the Blue Ridge Mountains. In fact, Hickory has been voted America’s Best City three times and was named one of America’s Best Small Cities by National Geographic Travel.

Active retirees will enjoy numerous parks and trails, including 26 city parks and the Hickory Trail, which offers 10 miles of bike and walking trails. There’s also a vibrant downtown area with City Walk filled with restaurants, retail shops and entertainment venues. The temperate climate, with few extremes of heat or cold, is also attractive to seniors who don’t like shoveling snow.

As for health care, residents have access to Catawba Valley Medical Center, a top-rated hospital, as well as many other options.

bottom line

For retirees who want to spend their golden years in the South, don’t sleep in Hickory, North Carolina. Not only is it one of the most affordable options in terms of housing costs, it also comes with favorable tax treatment, providing greater flexibility with your retirement income.

Hickory also happens to offer the perfect blend of small town living and big city benefits, making it truly attractive to many retirees.

methodology

The 2024 Best Places to Retire in the South list was selected from all census-designated locations in the Southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and Western) Virginia). Median household income and monthly housing cost estimates are based on data collected across the South from the 2022 American Community Survey (5-year period). Places with large errors in estimates were removed from the initial list.

The final list of locations was selected through an evaluation of:

1. Housing affordability relative to the South (how monthly housing costs in each location compare to the weighted average of Southern states);
2. Median income for each locality (as a proxy for taxes that may be associated with community resources; and
3. Personal reports on proximity to the park or shoreline, recent changes in the community, and previous reporting highlights this Best place to retire.