In 2026, the best housing markets for retirees are mainly in the Midwest, with Ohio and Michigan cities dominating due to affordability and high retirement income presence. Top cities include Saginaw, MI, and Mansfield, OH, with home values forecasted to rise modestly and requiring about 20-25% of income for housing. The worst markets are mostly in California and Hawaii, where high home prices demand over 50% of income, making retirement housing unaffordable.