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Social Security vs. Housing Costs: Best and Worst States for Retirees in 2025

Social Security represents the cornerstone of retirement income for tens of millions of Americans.

Social Security

Social Security represents the cornerstone of retirement income for tens of millions of Americans. Yet, rising housing costs are making it increasingly difficult for seniors to rely on it alone for a comfortable life.

A new study shows that Social Security benefits are sufficient to cover living expenses in only 10 states. According to a recent Realtor.com analysis, monthly Social Security checks do not fully meet living costs in most states, leaving retirees with annual shortfalls that can reach thousands of dollars depending on where they live.

The study compared average Social Security benefits in each state with the Elder Economic Security Standard Index, a measure tracking the basic cost of living for seniors. It found that homeownership costs have risen 26% over the past five years—not due to mortgage payments, but because of property taxes, insurance, utilities, and maintenance. These “hidden” expenses mean that the average retiree faces an annual shortfall of $2,762 (around $230 per month) even without a mortgage.

At a time when Social Security remains a lifeline for millions, the challenge is significant. A report from The Senior Citizen’s League (TSCL) highlighted that nearly three-quarters of seniors rely on Social Security for more than half of their income, while 39% depend on it entirely. Around 22 million people nationwide live solely on Social Security.

rising housing costs are making it increasingly difficult for seniors to rely on it alone for a comfortable life.

Housing: The Decisive Factor

The data shows that housing is the most critical factor in determining whether Social Security is enough. While food, healthcare, and transportation costs remain relatively similar across states, housing costs vary widely.

This difference shifts housing’s share of a retiree’s budget from 27% in surplus states to 32% in deficit states.

Best States for Retirees on Social Security Alone

Some states give retirees extra breathing room.

Other states where retirees can live solely on Social Security include:
West Virginia (+$660), Alabama (+$576), Nevada (+$432), Tennessee (+$156), and Michigan (+$132).

Social Security retirement USA

Hardest States to Rely on Social Security

On the other end, Vermont tops the list of most difficult states, with retirees facing an $8,088 annual shortfall. Average costs there reach $2,628 per month compared to benefits of $1,954.

Other high-deficit states include:

These findings underline the reality that where you retire in the U.S. can make the difference between financial security and thousands of dollars in annual gaps.

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