Best Affordable Places to Live in Delaware in 2024

Best Places to Live in Delaware

Delaware offers a variety of affordable places to live. Whether you want a city, like the state capital of Dover, a charming colonial-era town, or a beach community by the ocean, you will find plenty of options.

What’s more, Delaware doesn’t just have places that will suit your personal style. With a state cost of living that is 103.5 vs. the average of 100, an average property tax rate of 0.53%, and no sales tax, this Mid-Atlantic state can be a wallet-friendly place to reside.

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Best Affordable Places to Live in Delaware

Wondering where to settle down? Consider these top five best affordable places to live in Delaware.

1. Dover

Photo credit: iStock/DenisTangneyJr

The second largest city in the state and the capital, Dover offers affordability and much more. Residents praise this city and surrounding dense suburban area for maintaining a relaxing, small town feel; they also give thumbs-up to the area’s parks, school system, and shopping options. The fact that you can be in Wilmington (the state’s biggest city) or at the popular Rehoboth Beach in less than an hour is another asset.

Population: 38,594

Median Household Income: $51,073

Cost of Living: 93.3% of U.S. average

Median Rent Price: $1,600

Home Price-to-Income Ratio: 6.02

Average Property Tax: 0.56%

Housing Affordability: Dover home prices have risen 4.9% over the past year, which is very much in keeping with the 4.77% seen nationwide in 2022. The price-to-income ratio of 6.02 is slightly higher than the historical U.S. average of 5. In terms of rentals, the median price of $1,600 per month is 22% lower than the figure for the U.S. as a whole, and the market is cool, making it a good value.

2. Milford

Photo credit: iStock/DenisTangneyJr

Milford is an appealing and affordable suburban area. Cities and beaches are within easy reach, and there are plenty of outdoor activities (hiking, kayaking, biking) to keep residents busy outdoors in the picturesque landscape. Locals love everything from Milford’s farmers’ markets to its healthcare system to the Mispillion Riverwalk (including the River Lights Cafe).

Population: 12,981

Median Household Income: $47,849

Cost of Living: 95% of U.S. average

Median Rent Price: $1,900

Home Price-to-Income Ratio: 4.33

Average Property Tax: 0.42%

Housing Affordability: The average home price in Milford is currently $326,252, which is up just 2.7% and is less than the national average. What’s more, the home price-to-income ratio is a relatively affordable 4.33. (If you’re thinking of buying, it can be wise to review the different types of mortgages to find one that suits you best.)

The rental market is cool, with the median rent of $1,900 being 7% lower than the national number. This means bargains may be found.

3. Smyrna

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Residents enjoy the friendly small-town vibe of Smyrna, which is located less than 20 minutes from Dover and about 40 minutes from Wilmington. Smyrna is a convenient location for all ages and life stages. The nearby Bombay Hook National Wildlife Refuge and Blackbird State Forest will please nature lovers, while those looking for a bit of local nightlife may want to visit Painted Stave Distilling or Blue Earl Brewing Company.

Population: 13,294

Median Household Income: $63,794

Cost of Living: 105.2% of U.S. average

Median Rent Price: $1,350

Home Price-to-Income Ratio: 5.76

Average Property Tax: 0.56%

Housing Affordability: The average home in Smyrna is approximately $367,600, which, combined with the median household income of over $63,000-plus, makes Smyrna a relatively affordable option. In addition, the median rent price is $1,350, which is 34% under the national figure, in a cool market. These numbers indicate that Smyrna can be an affordable place to call home.

4. Middletown

Photo credit: Flickr/Doug Kerr , Creative Commons Attribution-ShareAlike 2.0 Generic

Middletown is a popular location for many people in Delaware to settle. Downtown’s Main Street hosts an array of festivals and celebrations, such as the Old-Tyme Peach Festival, which adds to the friendly, lively atmosphere. Whether ax throwing or apple picking is your idea of fun, Middletown can deliver. Residents also praise the local school system.

Population: 24,698

Median Household Income: $93,750

Cost of Living: 120.7% of U.S. average

Median Rent Price: $2,495

Home Price-to-Income Ratio: 5.33

Average Property Tax: 0.85%

Housing Affordability: At a glance, Middletown may look pricey. The average home value is just under $500,000, but when you look at Middletown’s median household income of $93,750, you can see that the buying power is higher. (Tip: You can read up on tips for qualifying for a mortgage if you are in home-buying mode and getting ready to apply for a home loan.)

While the median rent is 22% above the national figure, this is in keeping with the higher earnings of residents and the higher cost of living. The rental market is considered cool, meaning if you move there, you will likely have your pick of lodging.

5. Wilmington

Photo credit: iStock/ChrisBoswell

The state’s largest city can offer job opportunities, as well as any array of entertainment, shopping, and dining options. For those who want to live in one of the best affordable places in Delaware, Wilmington scores high for prospective residents who crave an urban lifestyle. There’s plenty to keep you busy, including the area’s riverwalk, museums, historical destinations, and multitude of dining and nightlife options.

Population: 71,569

Median Household Income: $49,354

Cost of Living: 99.3% of U.S. average

Median Rent Price: $1,704

Home Price-to-Income Ratio: 3.80

Average Property Tax: $0.85%

Housing Affordability: Overall, Wilmington can be an affordable place to live. The rental market, while up $79 year over year, is 17% below the national average, and the market is cool. Homes are averaging just under $300,000 in value, though property taxes are somewhat elevated versus other areas in the state.

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Best Places to Live in Delaware for Families

Wondering where to settle and bring up your kids? Here are some of the best affordable places to raise a family in Delaware, often thanks to the state’s natural beauty, parks, and cultural attractions.

1. Pike Creek

Housing Affordability: While the cost of living is above average in Pike Creek, so too is the median household income. Rentals, which rose slightly year over year, are almost identical to the national average. In addition, home prices overall have a low price-to-income ratio, making this often an affordable place to live.

2. Dover

Photo credit: iStock/DenisTangneyJr

Located close to the Delaware Bay and the Bombay Hook National Wildlife Refuge, Dover has a densely populated feel and affordable cost of living that appeals to many families. (The town is evenly split between homeowners and renters; either can be a budget-wise option.) The state capital, Dover has a centuries-old green in the heart of the city and many other historic sites which anchor the community. It also offers many shopping and entertainment opportunities. Families enjoy student-focused sporting events and festivals, as well as road tripping to other nearby cities.

Population: 38,594

Median Household Income: $51,073

Cost of Living: 93.3% of U.S. average

Median Rent Price: $1,600

Home Price-to-Income Ratio: 6.02

Average Property Tax: 0.56%

Housing Affordability: Dover offers affordable housing. The home price-to-income is just a bit above the national standard, and rentals are more than 20% lower than the U.S. median.

3. Hockessin

Photo credit: Flickr/Chris Foster, Creative Commons Attribution-NoDerivs 2.0 Generic

Hockessin is a popular area with almost all ages, but families especially will enjoy its quaint rural setting (think forests, fields, and fresh air) as a good place to raise kids. They also may also appreciate its public school system and array of sporting activities. Since Hockessin is close to Wilmington and Philadelphia, parents and kids can easily get to the cultural attractions in those cities. Commuting is also relatively easy for Hockessin residents. For instance, it’s just about a 20- or 25-minute drive to the center of Wilmington.

Population: 13,478

Median Household Income: 158,036

Cost of Living: 125% of U.S. average

Median Rent Price: $3,500

Home Price-to-Income Ratio: 3.33

Average Property Tax: 0.85%

Housing Affordability: Hockessin is an in-demand area for young families, but many have the means to afford the higher housing prices given the median household income of $158,036. The rental market, like that household income, is significantly above the national figure, with median rents 71% higher. However, the market is considered cool. Home prices rose a modest 2.5% year over year.

4. North Star

Housing Affordability: North Star has a moderate home price-to-income ratio and a rental market that is below the national median in terms of price. With a higher median household income, North Star can be an affordable place to raise a family.

5. Townsend

Housing Affordability: Home prices in Townsend are affordable vs. the national average, and rentals are under the American median as well, though there are few listings to choose from. The market is described as cool.

Best Places to Live in Delaware for Young Adults

Delaware has many affordable places for young adults to live, whether they want an energizing city vibe or a more relaxed pace amid the state’s natural beauty.

1. Dover

Photo credit: iStock/DenisTangneyJr

Making another appearance on this list, the state capital can be a good place for young professionals to settle, especially those seeking government jobs. (For those who want to continue their studies, good news: Dover is home to Delaware State University and Wesley College.)

With an average age of 34.4 years, the city is filled with plenty of young people. Dover also offers plenty of other reasons to move there: a relatively low cost of living, the Biggs Museum of American Art, and a NASCAR speedway to keep residents busy during their off-hours.

Population: 38,594

Median Household Income: $51,073

Cost of Living: 93.3% of U.S. average

Median Rent Price: $1,600

Home Price-to-Income Ratio: 6.02

Average Property Tax: 0.56%

Housing Affordability: Dover has affordable housing, with the median rental costing 22% less than the national average. For those thinking of becoming a homebuyer (especially first-time homebuyers), the home price-to-income is just a little above the national standard, meaning purchasing a place in Dover can be a money-wise option.

2. Delaware Avenue

Housing Affordability: The Delaware Avenue neighborhood can be a good place for young professionals, thanks to the median rent of $1,168 vs. the national average of approximately $2,050 and the slightly lower than average cost of living. Thinking of buying a home? Houses can be affordable with a 5.49 home price-to-income ratio.

3. Pike Creek

Housing Affordability: While the cost of living is above average in Pike Creek, so too is the median household income. Rentals, which rose slightly year over year, are almost identical to the national average. In addition, home prices overall have a low price-to-income ratio, making this an often affordable place to live.

4. Forty Acres

Housing Affordability: Home prices are relatively low in Forty Acres so first-time homebuyers may want to consider living there. The cost of living is on a par for the rest of the country, and rents compare favorably to the $2,050 national median.

5. Hockessin

Photo credit: Flickr/Chris Foster , Creative Commons Attribution-NoDerivs 2.0 Generic

Say hello again to Hockessin, which makes this list again as a best place for young professionals to live in Delaware. Many like this suburb’s relaxed pace and short commuting time (about 20 to 25 minutes) to Wilmington. There are plenty of parks (Auburn Valley State Park is just a few minutes’ drive away), boutiques, and restaurants locally that keep residents busy.

Population: 13,478

Median Household Income: 158,036

Cost of Living: 125% of U.S. average

Median Rent Price: $3,500

Home Price-to-Income Ratio: 3.33

Average Property Tax: 0.85%

Housing Affordability: Hockessin, with its above-average median household income and affordable homes, could be a good spot for a prospective homebuyer to start hitting the open houses. Rentals are higher than the national median, so buying your own place could be the right move in Hockessin.

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Best Places to Live in Delaware for Retirees

Many retirees choose to settle in Delaware. Its temperate climate, lack of certain taxes, natural beauty, and lively cities can make it the right choice for many people aged 65 and older.

1. Bethany Beach

Photo credit: iStock/Scott Kraller

Bethany Beach is a favorite spot for retirees in Delaware; the average age here is 66.9, which attests to its popularity. It boasts a delightful white sand beach for strolls during any season, and plenty of opportunity to enjoy the waves in warmer weather. Off-season, there are outlet shopping centers, wineries, and breweries to explore.

Population: 1,150

Median Household Income: $96,700

Cost of Living: 102.5% of U.S. average

Median Rent Price: $2,625

Home Price-to-Income Ratio: 5.91

Average Property Tax: 0.42%

Housing Affordability: Bethany Beach housing is a bit costlier than the standard U.S. home price-to-income ratio of 5, and rentals are 28% higher than the national median. However, to live in this seaside community, it might be worth it. Also, the median household income can help make living in Bethany Beach affordable.

2. Rehoboth Beach

Photo credit: iStock/DenisTangneyJr

With a median age of 63.5, Rehoboth Beach is one of the best spots for retirees. The fall and winter months are quiet, but in the summer, the boardwalk comes to life, making for a fun vacation feeling every day. The stunning beach is, of course, the main attraction. For retirees who like hosting vacationing family members, this can be an ideal spot.

Population: 1,392

Median Household Income: $137,783

Cost of Living: 130.1% of U.S. average

Median Rent Price: $2,200

Home Price-to-Income Ratio: 5.49

Average Property Tax: 0.42%

Housing Affordability: While rental costs are 7% higher than the national median, the price has dropped $400 year over year. It’s worth keeping in mind, though, that prices can soar in the summer months. The average home value is $757,586, meaning you might want to visit a home loan help center to learn more about mortgage options for properties with a higher price tag. Also note, though, that the home price-to-income ratio is 5.49 since the median household income is relatively high.

3. Lewes

Photo credit: iStock/ymn

Lewes is a popular and affordable place to retire in Delaware. With a median age of 65.7, it seems as if word has gotten out that this is a good location for those of retirement age. In the summer, the beach is just six or so miles away, and the ferry to the Victorian community of Cape May, N.J., leaves from Lewes, which can make for fun outings.

Population: 3,257

Median Household Income: $129,231

Cost of Living: 117% of U.S. average

Median Rent Price: $2,300

Home Price-to-Income Ratio: 5.27

Average Property Tax: 0.42%

Housing Affordability: As with Rehoboth Beach, living by the water in Lewes means spending more to own a property. However, the median household income for the area is relatively high, so the home price-to-income ratio is 5.27, which may be affordable for those at that earning level. The median rent is 12% higher than the national figure, but the market is cool, though it can heat up in the summer months as vacationers look for a place by the water.

4. Pike Creek

Housing Affordability: While the cost of living is above average in Pike Creek, so too is the median household income. Rentals, which rose slightly year over year, are almost identical to the national average. In addition, home prices overall have a low price-to-income ratio, making this a fairly affordable place to live.

5. Hockessin

Photo credit: Flickr/Chris Foster , Creative Commons Attribution-NoDerivs 2.0 Generic

Another of the best places to retire in Delaware, Hockessin appears on this list again. Sixty-two percent of the households are without children, meaning retirees will likely find others who are at the empty-next stage of life. Its location means residents can both explore the lush parks and countryside or zip into a nearby city to check out a museum or an array of dining options. Philadelphia, for instance, is about a 50-minute drive away.

Population: 13,478

Median Household Income: 158,036

Cost of Living: 125% of U.S. average

Median Rent Price: $3,500

Home Price-to-Income Ratio: 3.33

Average Property Tax: 0.85%

Housing Affordability: Hockessin’s cost of living is above the national average, but housing can be affordable thanks to the higher median household income and the 3.33 home price-to-income ratio. Rentals are pricey, however, clocking in at 71% higher than the national median.

Best Places to Live in Delaware Near the Beach

Delaware’s beaches are popular with summer vacationers who travel to spend time at the sugar-sand beaches and stroll the boardwalk. But why should they have all the fun? Here, five places to consider if you’d like to live by the beach in Delaware.

1. Bethany Beach

Photo credit: iStock/Scott Kraller

One of the best places to live by the beach in Delaware, Bethany Beach shifts from quiet seaside vibe in the off-season to full-swing summer beach town in the summer. If that suits you, this community of 1,150 could be a good fit. There are local museums, historical sites, breweries, and more to explore in cooler weather.

Population: 1,150

Median Household Income: $96,700

Cost of Living: 102.5% of U.S. average

Median Rent Price: $2,625

Home Price-to-Income Ratio: 5.91

Average Property Tax: 0.42%

Housing Affordability: Bethany Beach housing is a bit costlier than the standard U.S. home price-to-income ratio of 5, and rentals are 28% higher than the national median. However, to live in this seaside community, it might be worth it. Also, the median household income can help make living in Bethany Beach affordable.

2. Rehoboth Beach

Photo credit: iStock/DenisTangneyJr

A well-known vacation destination, Rehoboth Beach is sometimes referred to as the Nation’s Summer Capital, thanks to its beautiful beaches, arcades, seafood, and farmers’ markets. But it can also be a year-round best place to live in Delaware. There’s nearby Henlopen State Park, a former military base, to explore as the hustle and bustle of warmer weather dies down, as well as a local theater company, movies, and shopping for entertainment.

Population: 1,392

Median Household Income: $137,783

Cost of Living: 130.1% of U.S. average

Median Rent Price: $2,200

Home Price-to-Income Ratio: 5.49

Average Property Tax: 0.42%

Housing Affordability: While rental costs are 7% higher than the national median, the price has dropped $400 year over year. Home values average $757,586, but given the median household income, that’s not as steep as it might sound. Also, home prices have declined 3.1% year over year.

3. Lewes

Photo credit: iStock/ymn

Lewes is a picturesque and historic place, making it one of the best affordable places to live in Delaware. It’s located at the mouth of the Delaware River, and public transportation can make it easy to get to Wilmington and Rehoboth, among other destinations. The town has a historical society, museum, and other cultural attractions.

Population: 3,257

Median Household Income: $129,231

Cost of Living: 117% of U.S. average

Median Rent Price: $2,300

Home Price-to-Income Ratio: 5.27

Average Property Tax: 0.42%

Housing Affordability: As with Rehoboth Beach, living by the water in Lewes means spending more to own a property. However, the median household income for the area is relatively high, so the home price-to-income ratio is 5.27, which may be affordable for those at that earning level.

The median rent is 12% higher than the national figure, but the market is cool, though it can heat up in the summer months as vacationers look for a place by the water.

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4. Dewey Beach

Photo credit: iStock/DenisTangneyJr

This small beach community has stunning sandy beaches for a classic by-the-shore lifestyle. Dewey Beach is a best affordable place to live by the water thanks to its natural beauty as well as its amenities (think cute shops and waterfront dining).

Population: 442

Median Household Income: $96,557

Cost of Living: 166.5% of U.S. average

Median Rent Price: N/A

Home Price-to-Income Ratio: 7.9

Average Property Tax: 0.42%

Housing Affordability: In a community this small, it can be hard to find a home, though the housing supply is increasing. But for some, being patient and spending more than the national average is worth it to live in this idyllic seaside community. Year-round rentals are hard to find: Most are available as seasonal vacation properties.

5. Slaughter Beach

Photo credit: iStock/milehightraveler

Home to just 300 or so people, Slaughter Beach is nestled between the Marvel Salt Marsh Preserve and Prime Hook Wildlife Management Area, with pristine beaches by the sea. It’s a tranquil place to live and commune with nature.

Population: 302

Median Household Income: $76,250

Cost of Living: 109.2% of U.S. average

Median Rent Price: N/A

Home Price-to-Income Ratio: 5.49

Average Property Tax: 0.42%

Housing Affordability: As with Dewey Beach, Slaughter Beach is a tiny but growing community. With a home price-to-income ratio of 5.49, it can be a more affordable option than some other oceanfront towns. If you’re planning on hitting some open houses in Slaughter Beach, it can be wise to start on the mortgage preapproval process to show sellers you are a serious buyer.

Most of the rentals operate as seasonal vacation homes, so it can be hard to find a year-round property to rent.

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The Takeaway

The second-smallest state in America, Delaware offers a large number of affordable places to live for families, young professionals, and retirees alike. From lively urban settings like Dover and Wilmington to suburbs in the rolling hills to beach towns, there are budget-friendly options to suit a variety of prospective homebuyers’ tastes.

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FAQ

Where is the most affordable place to live in Delaware?

Among the most affordable places to live in Delaware are cities like Dover and Wilmington, as well as less dense locations like Milford, Middletown, and Hockessin.

What are affordable cities in Delaware?

Among the best affordable places to live in Delaware are the state capital, Dover, and Wilmington. In addition, there are many budget-friendly suburbs near each of these centers.

Why is it cheap to live in Delaware?

Delaware is known for having a reasonable cost of living, affordable housing options, and low taxes. In particular, it charges no state or local sales taxes.

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