America's Best Affordable Places to Retire

Had you been planning on a comfortable retirement until the economic downturn scrambled your nest egg? Do you think that you won't be able to find that cozy retirement home on the beach or golf course that you had once had your heart set on? Well, it might not be as bad as all that. With home prices falling in some of America's best retirement home destinations, this is a great time to find deals. But you need to know where to look.

Working with Cyberhomes.com, an Irvine (Calif.) home valuations and listings Web site owned by Lender Processing Services, BusinessWeek.com came up with some places to consider. We looked at Zip Codes with heavy concentrations of affluent seniors (or residents nearing retirement age) because we figured these would be beautiful, fun, and convenient. We then heavily factored in cost of living and—to a lesser extent—sunny days, home price projections, and proximity to hospitals, golf courses, and other amenities.

Methodology: The Zip Codes were ranked based primarily on the concentration of affluent retirees (and people nearing retirement age) as well as relative cost of living. But sunny days, the home price forecast for 2010, and the number of nearby amenities including golf courses, hospitals, theaters, museums, religious institutions, shopping centers, and airports, were also factored in. The 2010 housing forecast is Cyberhomes' projected home price change from Jan. 1, 2010 to Dec. 31. 2010. The cost of living index compares cost of living among Zips with "100" being average, 200 being twice the average, and 50 being half the average and so on. Only Zips where the cost of living index was between 100 and 200 were considered. Cost of living was also heavily weighted in the final ranking of Zips.

No. 1 - Tucson

Zip: 85755
Cost of living index: 109.44
Sunny days: 284
2010 housing forecast: 0%

Tucson, home of the University of Arizona, is a scenic, affordable place to retire. It is surrounded by mountains and the dry beauty of the Sonoran desert. It has its own airport, just six miles from downtown Tucson, more than 100 parks, a good public transportation system, and plenty of public and private golf courses. The university and University Medical Center are among of the state's largest employers.

No. 2 - Richmond, Va.

(University of Richmond area)
Zip: 23173
Cost of living index: 112.2
Sunny days: 205
2010 housing forecast: +2%

Richmond, the state capital, is known for its attractive neighborhoods and cultural offerings, including a symphony, ballet, and opera. Tourists flock to the area for the historic sites in and around the city.

No. 3 - Overland Park, Kan.

Zip: 66207
Cost of living index: 102.9
Sunny days: 216
2010 housing forecast: + 5%

Overland Park, 15 miles south of downtown Kansas City, is an affordable town with major medical facilities, a 300-acre arboretum and botanical gardens, a spacious two-level shopping mall, and many senior-living facilities.

No. 4 - Apache Junction, Ariz.

Zip: 85218
Cost of living index: 108.7
Sunny days: 295
2010 housing forecast: -2%

Apache Junction, a desert community 35 miles east of Phoenix, has a year-round population of 42,000 that swells to 77,000 during the winter season. It derives much of its revenue from sales taxes and has no city property tax.

No. 5 - Jekyll Island, Ga.

Zip: 31527
Cost of living index: 113.3
Sunny days: 221
2010 housing forecast: -4%

Jekyll Island, one of Georgia's Golden Isles, was one of the most exclusive resorts for America's richest families during the Gilded Age. Its heyday ended with World War II, but it has retained its great natural charm and is today a popular birding and golf destination. It has three 18-hole golf courses and one nine-hole course. Much of the island remains undeveloped and has miles of pristine beaches. Many residents move around the island on horseback and enjoy water sports including fishing, boating, and canoeing.

No. 6 - Pinehurst, N.C.

Zip: 28374
Cost of living index: 105.5
Sunny days: 216
2010 housing forecast: N/A

The village, home of the famous Pinehurst Resort, is a golfing mecca located in the Sandhills of North Carolina. The Pinehurst Resort has eight golf courses and a spa.

No. 7 - Reading, Pa.

Zip: 19610
Cost of living index: 108.3
Sunny days: 204
2010 housing forecast: -1%

Reading, an hour northwest of Philadelphia, has outlet shopping, ethnic restaurants, and the 9,000-seat Sovereign Center, where residents attend concerts and hockey matches.

No. 8 - Independence, Ohio

Zip: 44131
Cost of living index: 102.3
Sunny days: 163
2010 housing forecast: +1%

Independence, a city of 7,100 residents 14 miles south of downtown Cleveland, claims to have one of the state's lowest commercial and residential tax rates. It has many corporations and other businesses that employ more than 35,000 people.

No. 9 - Lexington, Ky.

Zip: 40510
Cost of living index: 113.4
Sunny days: 191
2010 housing forecast: +3%

Lexington, which has low property taxes and cost of living, is home to dozens of major companies, the University of Kentucky, and horse farms. It enjoys a diverse economy with a mix of agriculture, government, health care, and education.

No. 10 - Elgin, Ariz.

Zip: 85611
Cost of living index: 106.8
Sunny days: 284
2010 housing forecast: N/A

Elgin, a census-designated place 60 miles southeast of Tucson in southern Arizona, is famous for its wine festivals. The tiny community has several wineries, including the Village of Elgin Winery.

Click here to see the rest of the list of America's Best Affordable Places to Retire

Source: Cyberhomes.com and PolicyMap