This Texas Lake Town Is One of the Most Expensive Places to Retire. Here’s Why

The Sunbelt is a classic retirement destination, and it’s easy to see why. Covering the bottom third of the country, this region offers year-round sunny skies and warm weather. 

Texas is a particularly popular destination within the region, boasting no shortage of land, warm weather, good food, and ample entertainment opportunities. One standout is Rockwall, Texas, a lakeside suburb just east of Dallas with a population of around 56,000.

This small but vibrant town offers retirees the best of both worlds—scenic lake views with easy city access. The catch? Rockwall is also one of the most expensive places to retire in the South.

Understanding the Costs

Rockwall is a picturesque city located along Lake Ray Hubbard. While the median age is 38 years old, the region offers plenty of amenities, entertainment options, and a charming small-town feel for adults of any age to enjoy.

As more people discover the charm and appeal of this picturesque Dallas suburb, demand continues to grow. Today’s residents have a relatively high median household income of $124,917, over $44,300 higher than the national average.

Let’s take a look at a few other financial factors that may impact your retirement cost of living in Rockwall.

Property Prices

The median home value in Rockwall is $386,000, with monthly housing costs of $2,054. These home values are slightly higher than the national average of $361,263, though they’re fairly comparable. They do, however, outpace the rest of Texas.

Rockwall is home to prime real estate opportunities, with high housing demand driving prices up. Being a lakeside town, residents are willing to pay a premium for limited spots along the waterfront as well.

Another notable factor? Rockwall ranks “relatively low” on FEMA’s climate risk rating scale—making it a particularly desirable destination within the Lonestar state.

Other regions of Texas are more prone to tornadoes, flooding, hurricanes, and drought. While the initial home purchase price in Rockwall may be higher, retirees do get some sense of peace of mind along with it—and for those who can afford it, that may be well worth it.

Healthcare Costs

Rockwell County is home to five hospitals and over 320 healthcare facilities. While you’ll likely have no issues finding a primary care provider and pharmacy close by, your options for additional care or services may be limited. For specialized care and advanced treatment, you may need to trek into Dallas, home to several esteemed university hospitals and healthcare networks.

Local Taxes

Texas is a relatively tax-friendly state since it boasts no state income tax for residents. That being said, it does impose a 6.25% sales tax. Rockwall adds a 2% tax on top of this, for a total of 8.25% sales tax within the county.

Keep in mind higher home values means higher property taxes as well. The average effective property tax rate in Texas is 1.63%.

Local taxes are especially important to consider for retirees, since you’ll be expected to pay them year after year while living on a fixed income. If your home value rises due to Rockwall’s growing demand and popularity, your property taxes may also become more burdensome. Even an 8.25% sales tax can eat away at your monthly retirement budget faster than expected.

What Makes Rockwall So Expensive?

Rockwall is an attractive location for retirees and families alike, thanks to its close proximity to Dallas, waterfront properties, and small-town charm. As more people continue moving out of the metro in search of more laid-back, suburban escapes, Rockwall and similar cities are likely to continue gaining traction.

Lakefront Location and Metro Proximity

Rockwall sits along the eastern side of Lake Ray Hubbard, meaning it’s home to many small communities of lakefront homes and properties with scenic water views. The area is one of the closest suburbs to Dallas. On a good day with light traffic, you can expect to drive from Rockwall to the city center in about 30 minutes.

For this reason, Rockwall is a uniquely positioned town that attracts both busy commuters and relaxed retirees.

Upscale Housing Market

Rockwall boasts a diverse housing market, ranging from small starter homes or condos to more luxurious, custom builds. As housing demand continues rising, new home construction will likely continue driving average home prices up.

With a little bit of patience, you should be able to find properties that fit your lifestyle needs in retirement. This may include one-story living, downsized spaces with smaller yards, or townhomes with community caretakers and HOAs.

Lifestyle Perks at a Price

For the higher-than-average cost of living, Rockwall residents enjoy a charming small-town environment that doesn’t skimp on ambience or amenities. You’ll find no lack of culturally diverse restaurants, entertainment, and plenty of opportunities to enjoy the outdoors. 

Of course, for major concerts, sporting events, or plane rides, you can always commute to Dallas.

Retirement Considerations in Rockwall, TX

If you’re interested in heading to a retirement destination with plenty of sunshine and easy access to major metropolitan areas, Rockwall certainly has it all. But is it right for you? Let’s consider a few of the biggest pros and cons when it comes to relocating to Rockwall in retirement.

Pros

Rockwall is certainly a spot to consider if you enjoy fishing, boating, bird spotting, or simply taking in some breathtaking waterfront views. Many areas of Rockwall are easily walkable and accessible, and residents throughout the county feel safe and comfortable in their homes.

While its cost of living may be higher than other areas in Texas, Rockwall residents have access to everything they need, creating a beautiful backdrop to a serene retirement.

Cons

The primary deterrent for Rockwall is the cost of living. Not only are property values (and taxes) higher, but residents and visitors are subject to the 8.25% sales tax.

A higher cost of living is a good reason to pause and reassess your retirement resources and expectations, especially if you live in a less expensive area or city. Can you afford to withdraw more to cover the higher cost of living? Would you have to downgrade some aspects of your lifestyle to accommodate? Or are you in a position where you can spend more and enjoy an upscale retirement experience? It may help to run the numbers (what you have saved versus what you expect to spend) through a retirement income calculator to get a sense of what your future budget may look like.

The Bottom Line

If the costs align with your expectations for retirement, Rockwall can offer a beautiful backdrop to an active and vibrant retirement lifestyle. As you continue searching for your ideal destination, don’t forget to consider the costs and needs associated with retirement: accessible housing, specialized medical care, access to public transportation, etc. These can play an important role in determining how much you’ll spend in retirement and where your perfect retirement destination may ultimately be.