Key Takeaways
Allentown has a median home value of around $303,000, and everyday costs below the national average, and Pennsylvania won’t tax your Social Security, pension, or most retirement distributions.
Allentown has become Pennsylvania’s fastest-growing city, with a revitalized core that puts restaurants, free museum admission, concerts, and parks within easy reach.
Two hospital systems and hundreds of medical facilities across Lehigh County give retirees the specialist access and routine care they need without traveling to Philadelphia or New York.
Allentown may not top lists of classic retirement destinations, but for retirees seeking affordability, four-season living, and access to quality healthcare and everyday amenities, it delivers. Known for its industrial past, Allentown has refashioned itself as a walkable city that feels grounded but alive.
It’s not flashy, and that’s part of the appeal: convenience and value without big-city chaos. With a population of about 127,000 and more than 16,000 residents age 65 and older, Allentown is large enough to support strong hospitals, cultural venues, and everyday services, but small enough to feel like a community. For retirees who want to stay in the Northeast but dial back costs and pace, Allentown fits.
Related: Best 100 US Cities for Retirees in 2026—Did Your Town Make Our List?
Cost of Living
Cost of living draws retirees here first. Compared with nearby East Coast cities like Philadelphia, New York, or Newark, housing runs far cheaper—median home value sits just over $303,000. Whether you’re downsizing, buying a condo, or looking for a one-story home, your money stretches further here.
Everyday expenses matter just as much in retirement. Groceries, utilities, and transportation all land below the national average. Pennsylvania doesn’t tax Social Security, pensions, or most retirement distributions. Some exceptions apply, so consult a tax professional if you’re unsure. Over time, that tax break can meaningfully stretch a fixed income.
Community and Cultural Events
Thanks in to downtown revitalization, Allentown is Pennsylvania’s fastest-growing city. Restaurants, cafes, and shops now line walkable streets that draw residents and visitors alike. The Allentown Art Museum offers free admission and rotating exhibits. The PPL Center hosts concerts, sports, and live events year-round, and nearby Bethlehem’s Musikfest brings national acts each summer.
Outdoor space is a strength, too. Lehigh Parkway has miles of trails, shaded picnic areas, and creek views. For retirees who walk, bike, or just want fresh air, the parkway are a real bonus of living in the area.
Allentown is also home to several senior centers that give retirees easy ways to stay active and social throughout the week. These centers offer a mix of low-impact fitness and casual fun, such as chair exercises, crafts, bingo, card and board games, and even educational programming.Â
Denis Tangney Jr. / Getty Images
Downtown Allentown has transformed into a walkable hub of restaurants, shops, and cultural venues.Health Care Access
Reliable healthcare is often a deciding factor in retirement planning, and Allentown is well-positioned. Two hospitals serve the city: Lehigh Valley Hospital–Cedar Crest and St. Luke’s Allentown Campus. Together, they cover primary care, emergency care, and specialties focused on older adults.
Hundreds of additional medical facilities across Lehigh County give retirees options. Close-to-home care matters more with age—no long drives to Philadelphia for routine appointments.
Walkability and Climate
Allentown isn’t car-free, but the revitalized downtown is very walkable. Improved sidewalks put restaurants, parks, and events within easy reach on foot.
The climate delivers four distinct seasons, with especially mild springs and falls. Summers stay warm without brutal heat waves; winters are cold but milder than those in areas farther north. Retirees who like seasonal variety without weather extremes will find it here.
Bottom Line
Allentown offers something increasingly rare in the Northeast: a livable city with real amenities at a reasonable cost.
Affordable housing, tax-friendly retirement income rules, solid healthcare, and a growing cultural scene make it a good choice for retirees who want to slow down without sacrificing convenience. If you want value, comfort, and community, Allentown makes a strong case.
Read the original article on Investopedia