Not Texas or Arizona: This Unexpected Midwest Town Is America’s New Retirement Gem

Best American Retirement Place: Florida and California used to be the top places for people to retire. But in 2025, many are changing their minds. A new city is catching everyone’s attention, and it’s not one most would expect. Allentown, in Pennsylvania, is now becoming the go-to spot for people looking to enjoy their retirement without spending too much or dealing with crowded places. Even though it’s in Pennsylvania, Allentown is still part of the New York metro area, which gives it a nice mix of city access and peaceful living.

What’s really pulling people in is the mix of low taxes and cheaper living costs. It’s actually cheaper to live in Allentown than in many parts of the U.S. People who are retired don’t have to pay taxes on their retirement income here, and that makes a big difference when you’re on a fixed budget. Real estate experts didn’t see this shift coming, but now they’re noticing more and more retirees choosing Allentown over the usual sunny places.

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Retirees Want More Than Just Sunshine Now

Lots of people used to dream of spending their golden years in places like San Diego or Sarasota. Those spots had great weather, but they’re also getting too expensive. In Allentown, retirees get to enjoy a good life without worrying too much about money. The city has been fixing up its downtown area and it’s now full of cool new restaurants, parks, and cultural spaces. These spots give people fun things to do while also helping them stay healthy and active. And since New York City is close by, retirees can easily go there for a day trip whenever they feel like it.

Another big reason why Allentown is becoming popular is that it’s got good healthcare options and easy transportation. People feel like they can settle down here and not stress about basic needs. The community is also growing fast, which helps people feel like they belong and aren’t alone.

Florida is still famous for being a place to retire, mostly because of its weather and no state income tax. But lately, a lot of retirees are starting to leave. Life there is getting expensive. There are more traffic problems, bigger crowds, and worse weather events like heatwaves and hurricanes. California has the same kinds of problems but with even higher taxes and sky-high housing prices. For many, it’s just too much.

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That’s why Allentown feels like a good middle ground. It’s not super fancy, but it’s affordable and friendly. You still get access to city life, but you also have peace and comfort. It’s a place where retired folks can relax, feel safe, and stay active without going broke.