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Key Takeaways
- Gulf Shores, Alabama may appeal to retirees looking to move to a spot on the Gulf Coast, to settle down in a beachside locale, and to spend their days doing recreational activities on the water, and eating, shopping, or playing golf.
- The city of under 16,000 offers many of the same benefits as much larger coastal communities in Florida, but is much quieter.
- Cost of living is lower in Gulf Shores than the national average, but retirees should be aware of housing costs and the quality of health care statewide.
Located on the Gulf Coast just miles from the Florida state line, Gulf Shores, Alabama is a small beach community of under 16,000. For those looking to retire by the water in a laid-back, recreation-focused area known for its warm weather and golfing, Gulf Shores is an attractive option.
Cost of Living in Gulf Shores, Alabama
The moderate cost of living in Gulf Shores may be one of its primary draws for retirees considering a move to this resort town. Despite its popularity among tourists, Gulf Shores is more affordable than many other beach destinations around the country. In fact, the cost of living in this town remains about 3% lower than the national average, despite being 13% above that of the state of Alabama as a whole.
Taking a closer look at housing, the average home value in Gulf Shores is almost $452,000, which places it solidly above the national average of around $359,000. Digging deeper, though, more than 86% of recent home sales have been below the list price, and Gulf Shores’ median value has declined by close to 4% in the last year, making it a potentially opportune time for retirees to enter the housing market.
For those considering renting, the average monthly rent of $2,500 in Gulf Shores is still above the national average of $2,000, but far below the average cost of a rental in larger beach destinations like Santa Barbara or Miami.
Alabama’s state sales tax rate is 4%, but combined with a 3% county tax and a 3% city tax, the total sales tax rate comes to 10% for those living within the Gulf Shores corporate limits. (Retirees can save 1.5% on their sales tax by moving outside of those limits but staying within the city police jurisdiction.) Alabama has the 5th highest average combined state and local sales tax rate in the country.
That said, Alabama is a very friendly state for retirees when it comes to other taxes: it provides exemptions on Social Security and retirement income (such as withdrawals from traditional IRAs and traditional 401(k)s) for state income taxes, plus a homestead property taxes exemption and more.
Health Care and Accessibility
Health care is a primary concern for many looking ahead to their retirement years. Alabama is not known for its health care services, ranking 42nd nationwide as a state. However, Gulf Shores is in a particularly favorable region in terms of health care. It’s also about an hour’s drive from both Mobile, Alabama and Pensacola, Florida.
Of the nearby hospital networks, Baldwin Health received the highest overall grade—4 out of 5 stars—on Medicare.gov. And when it comes to assisted living and nursing homes, Gulf Shores offers competitive options. Private rooms in nursing homes in the area cost about $50 less per day than the national average, while care in assisted living centers is about $700 less per month.
Note
Golf enthusiasts will appreciate numerous golf courses in the Gulf Shores area, while those seeking water activities will find easy access to boating, fishing, diving, and much more.
Lifestyle and Recreational Activities
One of the main draws of Gulf Shores is its lifestyle perks. The climate has major appeal—while Gulf Shores is humid and hot during the summer, it cools off during the winter months. Still, this area remains significantly less crowded and touristy than many destinations in nearby Florida.
Proximity to the Gulf means easy access to a host of water activities, including snorkeling, boating, fishing, kayaking, sailing, and much more. When it’s time to stay on land, Gulf Shores has several golf courses within close range, plus an outsized shopping and dining scene to meet the needs of tourists that come through the area. Museum-goers may appreciate the National Naval Aviation Museum (45 minutes away), the Fort Mims historic site (an hour and 45 minutes away), or the Orange Beach History Museum (15 minutes away).
The Bottom Line
Given its small size and location on the water, Gulf Shores, Alabama is a popular option for retirees looking to settle down in a quiet community known for its beaches, warm weather, and golf courses. Though Gulf Shores is not the most affordable retirement destination, Alabama does offer some advantages for those in retirement, including a favorable tax setup in many ways. Gulf Shores is relatively close to the larger cities of Mobile and Pensacola, which both offer alternatives to local health care and other services. Best of all, the small city has a bigger-than-expected food and entertainment scene, as it remains a favorite of Gulf Coast tourists.
