Retiring is a big step in a person’s life, and often involves the process of selling the home you raised the kids in and buying a new one that is smaller and doesn’t seem like such an empty nest.

Many people who have come to this point in their lives choose to pick up and move to another state to spend their Golden Years, instead of just moving into a smaller place in the same area.

Just like there are some areas that are good for business people and some that are good for beach bums, some states and cities across the United States are known for being excellent retirement locales.

Places that are good for retiring tend to have favorable climate and even more favorable housing prices.

A recent article by Kendra Todd and posted on realestate.yahoo.com, “The best places to retire and stretch your real estate dollar,” looks at some of the best places for retirerees to settle down.

“I've worked with a lot of people to locate and buy their ideal retirement home, and I don't think any one factor leads the pack in determining if a locale is great for retirement. From my experience, it's a blend of four factors.”

The author lists these four factors as cost of living, climate, things to do and community. “Cost of living - Can retirees buy a nice house without taking on a mortgage, and can they live comfortably on their investments? Climate - Most people want someplace warm, which is why Florida and Arizona attract retired folks like Disney World attracts kids. Things to do - Most retirees I work with are dynamos who want to travel, learn to surf and swing dance in their spare time. They need to live in a place with scheduled onsite activities, a surrounding area where they can find arts, culture, sports and entertainment, or both.”

“Community - Not all retirees want to hang out only with people their age, but most want a social network. I don't find too many older couples looking to move to a cabin deep in the woods of British Columbia.”

The most traditional states to retire in have been Florida and Arizona, but now that so many people have realized this, and home prices have risen, the tides will turn on a new “hot spot” for retirees.

As of right now, the Carolinas seem to be stealing the spotlight.

“Charleston, S.C.   If you can put up with the humidity, this Southern belle of a city offers very low housing prices in a seaside location with tons of history. Asheville, N.C.   Known as the Paris of the South, this western North Carolina town of about 70,000 is renowned as a spot for the arts, culture and diversity. The housing costs and cost of living are below average. “

If you want to live in California, but can’t stand the high-priced housing, there still are a few little places that are relatively priced and offer a lot of amenities, such as Paso Robles, Calif. “The Golden State has a reputation for being overpriced, but some places are worth it. With an average price around $380,000, you can get a great old home in a comfy town of 29,000 that's right in the middle of one of the premium wine growing regions. Recreational opportunities abound, the coast is an hour away, and you're halfway between Los Angeles and San Francisco.”