A warm, sunny climate and rich cultural heritage have long kept Tucson at the top of retirees' list of winter vacation destinations. However, with a cost of living that's 3% below the national average, a strong job market and steady home prices, there's plenty to enjoy about this city all year-round.

"Tucson is a dynamic, growing retirement spot, so there are plenty of job opportunities — although the pay is often low," says Bland. While it's not quite a college town, Tucson relies heavily on the University of Arizona as its second-largest employer. Technology and tourism (mostly from snowbirds) also provide plenty of jobs.

Steady expansion and new developments have kept housing relatively affordable, with costs at about 20% below the national average. The average sale price for existing homes dropped just 0.01% in 2007, to $244,800. Expect real estate prices to remain solid, thanks to increasing interest in the area as a retirement destination. The most popular areas are planned communities (retirement-specific and otherwise) northwest of the city, including Oro Valley and other towns in the foothills of the Santa Catalina Mountains.   (Kelli B. Grant -SmartMoney.com)