America's Wealthiest Suburb Is In One Of The Most Expensive States To Retire In

Wealth is certainly not distributed equally across the United States, as year after year studies find certain parts of the country, namely the West Coast, East Coast, and Hawaii rank at the top of lists for titles like the wealthiest communities and the most expensive states to live in. In fact, those titles seem to go hand in hand, like with this year's wealthiest suburb. A recent study by GOBankingRates looked at towns and cities across the country (all locations included in the survey had at least 5,000 households or more) and determined that Scarsdale, a suburb of New York City, earned the top spot as the wealthiest suburb in the nation for 2024. The problem many retirees may have, however, despite the many qualities that make Scarsdale such an attractive location for residents, is that New York is one of the most expensive states to retire in.

Scarsdale has an average household income of $568,942 per year, which is more than $160,000 higher than the runner-up location of Rye, which is also in the state of New York, but home prices, which average $1,413,514 in Scarsdale are actually quite low compared to other cities on GoBankingRate's list, like Los Altos, California, where the average home price is nearly $4.5 million. Other redeeming qualities for Scarsdale are its proximity to New York City and nearby international airports like JFK and Newark Liberty International Airport, and its comparably low crime rate, per Neighborhood Scout, which says Scarsdale's rate is lower than ~51% of New York communities.

While Scarsdale may seem an attractive place to move to, it's also in New York, a state that consistently ranks among the most expensive states to retire in. According to a 2024 study by Bankrate, the state came in second to last place in terms of affordability thanks to factors like high health care costs, high property tax and sales tax rates, and high insurance costs.

Although Scarsdale has a low population count, with an estimated 17,207 residents, per the Census Bureau, only 14% of those residents are over the age of 65, indicating that a good portion of the New York suburb's population is still working. New York state is known for its high-paying job market, but for retirees who no longer work and are living on a fixed income, the cost of living will be disproportionately high, potentially pricing them right out of Scarsdale and sending them to other places that are more affordable. (With that said, here are 10 states no one should retire in.)

Certain U.S. states rank high year after year in terms of affordability, like Hawaii, which Forbes recently ranked first in cost of living at an average per-person cost of $55,491 per year, compared to Mississippi, which ranked 50th with the lowest annual expenditure: $32,336 (Mississippi also has the lowest average annual salary, however). California also repeatedly ranks extremely high for its high costs, with Bankrate naming it the least affordable state for retirees in the U.S. for 2024 due to the Golden State's low affordability, expensive health care, and high crime rate. Conversely, states like Wyoming rank high for affordability, making it a popular choice for retirees looking to make their nest egg last.

When it comes to wealthy cities and/or suburbs across the country, note that they don't all fall into the category of unaffordable states for retirees, like University Park in Texas, which, according to the Missouri Economic Research and Information Center's Cost of Living Data Series, ranks 15th in the U.S. (as of the third quarter of 2024), with a cost-of-living index of 92.6. (See what the average Social Security benefit for a retired worker is by age.)