Cost of Living in Allentown, PA

With a cost of living index of 89, Allentown, PA is a very affordable place to live. Living here is 11% cheaper than the national average and 6% above the Pennsylvania state average of 83. As a major city with a population of 125,320, Allentown offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Allentown's cost of living. The median monthly rent is $1,269 (4% below the US median of $1,319), and the median home value sits at $188,900 (38% below the national median of $304,900). At current prices, the median home costs roughly 3.5x the median household income — a moderately affordable ratio by today's standards.

The median household income in Allentown is $53,403, which is 29% lower than the national median of $75,149. Residents spend roughly 29% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Allentown. The area sees an average annual temperature of 53.1°F, with summers averaging 73°F and winters around 33°F. Annual rainfall totals 47.4 inches spread over roughly 129 days.

Everyday prices in the Allentown-Bethlehem-Easton, PA-NJ (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 5 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.