Fredericksburg in Texas, boasting a population of approximately 10,875 people, is a growing city with an appeal for prospective retirees. Its population skews older, with a median age of 50.7, and almost 33% of its residents are 65 years or older. Situated west of Austin and north of San Antonio in the picturesque Texas Hill Country, Fredericksburg caught our attention thanks to its affordability, lack of state income tax, charming small-town aura, and natural allure.
Although it's not the most inexpensive place to retire in the southern part of the country, Fredericksburg's housing cost is slightly higher than the southern average, retaining its position among the top ten affordable locations. The median monthly housing costs in this city are $1,254 compared to the overall South's $1,163, approximately 8% higher.
The housing market in Fredericksburg is somewhat pricier than other areas, with a median home price of $530,706. However, affordable options are available, including homes in the $300,000 or even lower range. For renters, the starting monthly price is around $1,150, making it relatively affordable when compared to the national median rent of $1,394.
Property taxes in Fredericksburg, located in Gillespie County, are an average of 1.140%. But, compared to larger Texas cities such as Austin, where the property tax rate is 1.770%, it's still a lower expense.
From a tax standpoint, Texas is one of only seven states that levies no individual income tax, a significant advantage for those budgeting for retirement. In comparison, states like New Mexico and California charge up to 5.9% and 13.3% income tax, respectively. Also, the state of Texas has state and local sales tax, which at 8.20% is one of the country's lowest.
Additionally, wine enthusiasts would be thrilled to know that Fredericksburg, located in the heart of Texas wine country, boasts over 60 wineries, vineyards, and wine-tasting rooms. German-American culture, which dates back to the German settlers' founding in 1846, also thrives in this city.
If you love spending time outdoors, Fredericksburg does not disappoint. Enchanted Rock State Natural Area, with its 11 miles of hiking paths and vibrant wildflowers in spring, is a nature lover’s paradise. Recurring cultural events like the Gillespie County Fair, annual Oktoberfest and Food and Wine Festivals, along with easy access to quality healthcare services, make Fredericksburg an appealing retirement destination.
Therefore, whether you're considering Texas or another Southern state for your retirement, don't overlook Fredericksburg. Its broad appeal, blending finances, climate, healthcare, and culture, makes it a consideration-worthy location for your retirement years.