Millions of Americans reach retirement age each year, and choosing where to spend their later years can be a major financial and lifestyle decision.

Midland, Michigan , claimed the top spot in U.S. News & World Report's ranking of the best places to retire, with a median home value of $206,176, well below the national average of $359,870.

U.S. News & World Report ranked the top places to retire in the country based on factors including housing affordability, quality of life, healthcare, desirability and the job market. The latest list includes communities across eight states, with Texas and Florida each represented twice.

Housing costs vary widely among the top-ranked communities.…