It is important to note that a taxpayer's initial intent must be to acquire the replacement property as business or investment property and not as their primary residence. Therefore a newly exchange property in 1031 exchange cannot be used for primary residence immediately.
What you can do is, go to retirement city and buy a primary residence A, then 1031 exchange a rental property B in the new city, and then move into the new exchange property B after 1-2 years. Either sell or rent out the primary residence A.
If IRS comes to check, you say you retired to the city that's why 1031 exchange is needed, and later you changed your mind about which property to live in.
