Beach towns in Delaware are drawing a growing number of retirees as the region emerges as an alternative to more prominent retirement destinations such as Arizona and Florida — and the influx is putting local resources under strain.

A Bloomberg report finds that retirees are flocking to Sussex County in southern Delaware, which has gained 40,000 new residents since 2020 — a growth rate of 17%, roughly five times the national average.

Sussex County's growth has also given Delaware the fastest-growing population of residents age 65 and older of any state, with a 23% increase in that cohort since 2020, topping all 50 states, including those traditionally popular with retirees.

Older generations have historically sought warmer climates in places like Florida and Arizona upon retirement, but southern Delaware has become a compelling option, particularly for those leaving colder locales in the North. Rising costs in Florida, including climbing home insurance premiums in recent years, have added to the appeal of looking elsewhere for some retirees.

Delaware offers notable tax advantages over Northeastern peers such as New York, New Jersey and Massachusetts. The First State, as Delaware is nicknamed, has a top income tax rate of 6.6%, no sales tax, and generally lower property taxes than those larger Northeastern states, according to Tax Foundation data. Delaware also levies no estate tax, which can be an important consideration for retirees.

Brad Travis Jr., a financial planner who grew up around Sussex County, told Bloomberg, "Everybody wants to be the last person to move here." He noted that "property tax refugees" from New Jersey could see those costs fall from $18,000 to roughly $1,500.

Communities like Lewes and Rehoboth Beach — the latter known as the location of former President Joe Biden's home — have seen significant growth as retirees move to the region. Census estimates show Sussex County's median age rose to 53.2, nearly 14 years higher than the national average and an increase of five years since 2015.

New residents often have higher incomes: the latest IRS migration data, from 2022, indicates families moving to the region had annual incomes of more than $136,000, compared with under $92,000 for existing residents.

While the influx has helped boost the local economy, it has also strained resources including healthcare, education, roads and stores. The healthcare pressure reflects a challenge familiar to fast-growing retirement destinations: demand for specialists and routine geriatric care can outpace local capacity, especially in traditionally rural areas. Sussex County had long been a largely agricultural region before its coastal communities began expanding. Bloomberg reported that schools are installing modular classrooms to accommodate growing student populations — a sign that the growth is not limited to retirees.

Joe Pika, a 79-year-old former professor at the University of Delaware, told the outlet he waited nine months for a colonoscopy and 18 months for a dental visit, and drove 40 miles to see a dermatologist.

Pika, who moved to the area only four years ago, said he is among the residents concerned that Sussex County is growing too rapidly, telling Bloomberg there was "an appalling lack of planning" for the issues that have coincided with its growth. How county officials respond — through infrastructure investment, healthcare capacity and school planning — is likely to shape whether the region can sustain its new role as a retirement destination.