Why This North Carolina Metropolis Tops the Checklist for Price range-Pleasant Retirement Locations

In terms of inexpensive retirement dwelling within the South, Hickory, North Carolina, checks off lots of the vital containers that retirees care about. It’s possible you’ll not have heard of this small metropolis with a inhabitants of simply 43,490, however it has one of many lowest housing prices within the South and favorable tax therapy. 

Positioned only a quick drive from Charlotte, Hickory gives a welcoming, small-town vibe and lots to do for these searching for an energetic way of life.

Although the median age in Hickory skews younger (age 37.9), 16.9% of the inhabitants is 65 or older. Plus, as an increasing number of retirement-aged individuals head south, don’t be stunned if Hickory turns into a well-liked vacation spot because of its distinctive mixture of pure magnificence, downtown enjoyable, and budget-friendly dwelling. 

Under-Common Value of Dwelling

One of many key causes that Hickory, North Carolina, earned a No. 6 rating in our “Finest Locations To Retire within the South” report is its very inexpensive median month-to-month housing bills. Hickory residents pay a mean of $960 per thirty days in housing prices, 17% lower than the $1,163 common month-to-month housing prices throughout the South general. 

Renters may discover residences beginning as little as $1,000 per thirty days, which is method under the nationwide median of $1,382 (as of December 2024). Even going by Hickory’s median revenue of $58,251, which is decrease than the nationwide common of $77,540, it will solely take about 20% of revenue to cowl the bottom lease, leaving some wiggle room in a retiree’s mounted funds.

Why This Is Key to an Inexpensive Retirement

Individuals in retirement usually have mounted revenue from a mixture of Social Safety, pension, or retirement account distributions. Since housing prices are the biggest expenditures in a single’s funds, requiring about 23% of a retiree’s revenue on common, the much less you pay for housing, the extra revenue you’ll have at your disposal.

Given Hickory’s a lot lower-than-average median month-to-month housing prices, whether or not you personal a house or lease, life could be extra inexpensive for individuals who retire there.

Low Property Taxes

In Catawba County, the place Hickory is situated, the county tax price is 0.700%. On a house valued at $285,180 (which is the typical value in Hickory), that may be about $1,996 per yr.

When coupled with decrease general housing prices, having cheap property taxes could make dwelling on a retirement revenue far more manageable.

Why This Is Key to an Inexpensive Retirement

Property taxes generally is a sneaky funds killer, relying on the place you reside. Even in case you have paid off your house mortgage, ongoing property taxes—which have a tendency to extend over time—are nonetheless your accountability. Take, for example, a state like New Jersey, the place the state and native property tax price of two.08% ranks highest within the nation, and you may see how that may shortly eat away at your revenue. North Carolina’s tax price ranks a way more inexpensive thirty sixth within the nation.

Under-Common Earnings Tax

North Carolina is considered one of simply 12 states that includes a flat particular person revenue tax price on all revenue—and it’s only a flat 4.5%. Although it’s not essentially the bottom revenue tax on the market, particularly since a number of states don’t cost any revenue tax in any respect, it’s nonetheless an vital issue to contemplate for those who’re relocating from a higher-tax state. For reference, states like Minnesota and Oregon have a prime tax price of virtually 10%.

As well as, the typical mixed state and native gross sales tax price is 7.0% in North Carolina; the state ranks twenty seventh within the nation. That places it proper about within the center nationally, however it’s among the many greatest charges within the South. For instance, Alabama’s mixed price is 9.29%, whereas Tennessee’s is 9.55%. 

Why This Is Key to an Inexpensive Retirement

A flat tax price gives predictability and might particularly work out in your favor in case you have a excessive revenue in retirement. In different states, you progress into a better tax price for those who earn over a sure revenue threshold. If you don’t make plenty of revenue in retirement, nevertheless, you might need a neater time discovering a state the place the revenue tax is decrease.

Decrease gross sales tax is one other issue that may assist your cash go additional, stretching your greenback whenever you buy every thing from groceries to fuel to home goods. Whereas North Carolina might not have the bottom gross sales tax within the nation, it is higher than many different states. Like different features of retirement funds, the very best technique is to take a look at your present state revenue tax price and examine it to what it will be in North Carolina to see if you’ll come out forward. 

Different Shocking Perks of Hickory, North Carolina for Retirees

Hickory is a type of locations the place the mantra “location, location, location” rings true. Located alongside the Catawba River and in shut proximity to Charlotte, Hickory is a hidden gem surrounded by nature, together with scenic views of the Blue Ridge Mountains. The truth is, Hickory has been named an All-America Metropolis 3 times, in addition to being acknowledged by Nationwide Geographic Journey as one of many Finest Small Cities in America. 

Energetic retirees will get pleasure from an abundance of parks and trails, together with 26 metropolis parks and the Hickory Path, which gives 10 miles of bicycle and pedestrian pathways. There’s additionally a vibrant downtown space that includes a Metropolis Stroll with eating places, retail retailers, and leisure venues. The gentle local weather, which not often options excessive sizzling or chilly temperatures, can be enticing to seniors preferring not shoveling snow.

As for well being care, residents have entry to Catawba Valley Medical Heart, a top-rated hospital, and lots of different choices. 

Backside Line

For retirees trying to reside out their golden years down south, don’t sleep on Hickory, North Carolina. Not solely is it among the many most inexpensive choices concerning housing prices, however it additionally has favorable tax therapy, offering extra flexibility to your retirement revenue.

Hickory additionally occurs to supply the proper mix of small-town dwelling and big-city perks, which makes it actually interesting for a lot of retirees. 

Methodology

The locations chosen for 2024 South’s Finest Locations To Retire record have been chosen from all Census Designated Locations in southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia). Median family revenue and month-to-month housing value estimates have been collected from the 2022 American Neighborhood Survey (5-year) for every place within the South. Locations for which estimates included giant margins of error have been faraway from the preliminary record. 

The ultimate record of locations was chosen by evaluating: 

1. Housing affordability relative to the South (how every place’s month-to-month housing prices examine with a weighted common for states within the South);
2. Median revenue in every place (as a proxy for taxes collected which can be associated to group sources; and 
3. Particular person reporting on proximity to parks or coastlines, current adjustments in the neighborhood, and former reporting highlighting the greatest locations to retire.