Consider These Factors Before Retiring in Arlington, Virginia

Arlington, located in Virginia, is currently one of the priciest places to retire in the United States due to its high housing costs, costly healthcare, and stiff tax rates. Though often perceived as a city, Arlington is technically the smallest self-governing county in the U.S., spread over less than 26 square miles and lacking any incorporated towns or cities. Despite its modest size, Arlington manages to fit in high-end real estate, a wealth of services, and, to the detriment of retirees, a notably inflated cost of living. For those considering retirement in Arlington, these are key factors to weigh in. Situated just across the Potomac River from Washington, D.C., Arlington offers prime real estate options for retirees, particularly those attracted to proximity to national monuments, government activities, and bustling business life. Nevertheless, such closeness to critical affairs comes at a price. Real estate values in Arlington significantly outmatch the general U.S. values. As reported by the U.S. Census Bureau, the median price of an owner-occupied home in the city is $864,800 – more than 2.8 times the U.S. median of $303,400. This means that the cost of a single median-priced home in Arlington could buy nearly three average homes in the U.S. Healthcare costs, which tend to rise as individuals age, are another crucial factor when choosing a retirement destination. In Arlington, these costs exceed the national average. For example, a doctor's visit costs about $177.67 in Arlington, in contrast to the national average of $143.77. On the upside, Arlington offers relatively easy access to healthcare. Within the city's nearly 26-square-mile territory, there are 6 hospitals and 450 healthcare establishments. Additionally, a drive to UVA University Hospital, which is ranked amongst Newsweek's World's Best Hospital List, takes about 2 hours. However, taxes in Arlington can make a substantial dent in your retirement savings. The city has a median property tax rate of 0.8989%, and an average annual property tax of $7,774 - over 4.1 times the U.S. average of $1,889. The state income tax is graduated, which, for many residents, results in payments of $720 plus 5.75% of any income over $17,000. Considering a 6.0% sales tax, the average resident ends up paying approximately $1,095 a month in taxes. The leading contributors to Arlington's high cost of living are its close proximity to Washington, D.C., and its elevated standard of living. For instance, many federal employees prefer to live in Arlington while working in Washington, which pushes up the local cost of housing and services. Additionally, over 25,000 federal employees work in Arlington itself, including at the world's second-largest office building, the Pentagon. Arlington's cost of living is also inflated by its multiple recreational and community amenities. When considering retirement in Arlington, it's essential to fairly consider the advantages and disadvantages. While it may be expensive to live in Arlington, it does offer an elevated quality of life encompassing healthcare, amenities, and transportation options. However, with median monthly housing costs of $2,414, transportation costs of nearly $1,000, and food costs of $865, Arlington could be considerably more expensive than other retirement destinations in the U.S., where the national median monthly housing cost is $1,338. Therefore, Arlington provides retirees with a superior quality of life in a highly connected urban environment, but it comes with a significant price tag, so it’s important to consider affordability and value before committing to it. Alternatively, you could consider retiring in a nearby suburb offering a better balance of affordability and amenities.