Key Takeaways
- Bethlehem, Pennsylvania, has transformed from a declining steel town to a busy hub for visual and performing arts.
- Bethlehem was named one of Investopedia’s top 100 places to retire in the United States.
- The cost of living is manageable for retirees on a fixed budget, with prices for housing, essentials and healthcare equal to or lower than national averages.
- Most retirement income is not subject to state and local taxes in Pennsylvania.
Bethlehem is a historic city in eastern Pennsylvania, and one of Investopedia’s top 100 places to retire in America. Once a steel town, it has since transformed into a cultural destination and an appealing choice for retirees. Bethlehem has the walkability, local arts and character of a larger city. But, with a population of only about 80,000 people, it lacks the crowding and tourist population of nearby cities like Philadelphia or New York.
Cost of Living and Housing
Bethlehem’s residential areas have a beautiful mix of historic homes, modern condos and apartments. The quieter residential neighborhoods will appeal to retirees looking to downsize.
Housing prices in Bethlehem are moderate, with an average home value of $351,000 in May 2026, just about equal to the national average of $366,000. Retirees who choose to rent, rather than buy, will also enjoy affordable prices; the average monthly rent in Bethlehem is $1,900, slightly lower than the national average of $2,000.
Everyday expenses remain manageable for retirees on a fixed income, particularly compared to larger nearby cities. Energy and transportation costs are both lower than the national average, and food costs are significantly lower (27%)…