11 Best Cities in Pennsylvania TO Invest in 2025 Breakdown
Pennsylvania
If you’re thinking about moving to Pennsylvania or looking for real estate investment opportunities in PA, you’re not alone. With its mix of bustling cities, charming small towns, and stunning natural landscapes, the Keystone State offers something for everyone.
Housing demand is on the rise, and home values are climbing. The average home price in PA is $265,565, marking a 4.1% increase over the past year. This steady growth has made the state one of the best places to invest in PA, whether you’re buying a home to live in or considering rental properties.
From thriving urban centers like Philadelphia and Pittsburgh to scenic communities in the Lehigh Valley and along Lake Erie, Pennsylvania’s top cities offer affordability, strong job markets, and excellent quality of life. But which places stand out in 2025?
In this guide, we’ll explore the best places to live in Pennsylvania, ranking them based on affordability, livability, and investment potential.
Best Places to Invest in PA
Harrisburg, PA
Population: 50,099
Average Home Price: $243,610 (+5.4% past year)
Average Rent: $1,175
Median Household Income: $47,783
Median Travel Time to Work: 20.6 minutes
Unemployment Rate: 3.5%
Harrisburg
As the capital of Pennsylvania, Harrisburg blends history, affordability, and economic opportunity. Nestled along the Susquehanna River, this city offers charming neighborhoods, a growing job market, and a convenient location between Philadelphia, Pittsburgh, and Baltimore.
Harrisburg has become an attractive spot for homebuyers and investors alike, with the average home price rising 5.4% over the past year. This steady appreciation, paired with a relatively low cost of living, makes it one of the best places to invest in PA.
The city’s economy is fueled by government jobs, healthcare, and corporate headquarters. National and international companies like HP Inc., Ahold Delhaize, IBM, Rite Aid Corporation, Volvo Construction Equipment, and Harsco Corporation call Harrisburg home, offering stable employment opportunities.
Beyond work, Harrisburg boasts historic architecture, scenic riverfront parks, and a vibrant arts scene. The Pennsylvania State Capitol, with its breathtaking dome inspired by St. Peter’s Basilica, is a must-see. Festivals, farmers' markets, and a burgeoning food scene keep the city lively year-round.
With a strong economy, affordable real estate, and a prime location, Harrisburg continues to be a top contender for living and investing in Pennsylvania in 2025.
Philadelphia, PA
Population: 1,603,797 (largest city in PA)
Average Home Price: $218,849 (+3.5% past year)
Average Rent: $1,385
Median Household Income: $60,698
Median Travel Time to Work: 32 minutes
Unemployment Rate: 3.7%
Philadelphia
Philadelphia is a city that never stands still. As Pennsylvania’s largest metropolis and a national cultural hub, Philly blends rich history, world-class education, and a dynamic real estate market. Whether you’re looking to buy a home or invest, the city’s steady growth makes it one of the best places to invest in PA.
Home prices have risen 3.5% over the past year, yet the city remains affordable compared to other major East Coast destinations. With 13 Fortune 500 companies headquartered here, a strong job market continues to attract newcomers, fueling demand for housing.
Philadelphia is also a top-tier academic and research center, home to 17 four-year universities and colleges, including the University of Pennsylvania, Drexel University, and Temple University. This makes the city a prime location for rental investments catering to students and young professionals.
Beyond its economic strengths, Philly is famous for its arts, culture, and food scene. It boasts more outdoor sculptures and murals than any other U.S. city, making every street a canvas of creativity.
You’ll find historic landmarks like Independence Hall and the Liberty Bell alongside modern skyscrapers, trendy neighborhoods, and world-class museums. And, of course, no visit is complete without a classic Philly cheesesteak from Pat’s or Geno’s.
With its historic charm, economic resilience, and vibrant urban energy, Philadelphia remains a top choice for living and real estate investment in Pennsylvania in 2025.
Pittsburgh, PA
Population: 302,971
Average Home Price: $223,838 (+2.5% past year)
Average Rent: $1,320
Median Household Income: $64,137
Median Travel Time to Work: 23.1 minutes
Unemployment Rate: 2.5%
Pittsburgh
Once defined by its steel mills and smokestacks, Pittsburgh has evolved into a modern hub for healthcare, technology, and finance. Nicknamed "The Steel City" for its historic role in the U.S. steel industry, Pittsburgh now boasts a diversified economy while retaining its blue-collar resilience and charm.
The average home price has risen 2.5% over the past year, making Pittsburgh an affordable and steady real estate investment opportunity in PA.
A strong local economy, low unemployment (2.5%), and a thriving job market continue to attract buyers and renters alike.
Pittsburgh is home to major medical institutions, including the University of Pittsburgh Medical Center (UPMC) and Allegheny Health Network, making healthcare one of the city’s biggest employers.
The presence of ten Fortune 500 companies and seven of the nation’s largest law firms also reinforces Pittsburgh’s reputation as a business-friendly city.
Beyond its economic strengths, Pittsburgh offers a high quality of life with its scenic riverfronts, historic neighborhoods, and cultural attractions. From the Carnegie Museums and Heinz History Center to the iconic Three Rivers and Point State Park, the city blends history with modern innovation.
Sports fans will feel right at home, cheering for the Steelers (NFL), Pirates (MLB), and Penguins (NHL) in a city where sports pride runs deep.
With its affordable housing, strong economy, and vibrant culture, Pittsburgh remains one of the best places to live and invest in Pennsylvania in 2025.
Allentown, PA
Population: 125,845
Average Home Price: $286,124 (+6.2% past year)
Average Rent: $1,215
Median Household Income: $53,403
Median Travel Time to Work: 24.8 minutes
Unemployment Rate: 3.7%
Allentown
Founded in 1762 along the Lehigh River, Allentown has transformed from an industrial powerhouse into a thriving modern city.
As the fastest-growing city in Pennsylvania, Allentown’s housing market reflects this demand, with home prices increasing 6.2% over the past year—one of the highest jumps in the state. This makes it an attractive real estate investment opportunity in PA, especially for those looking for long-term growth.
The city’s economy is bolstered by the presence of major corporate headquarters, including Air Products and PPL Corporation, as well as the Lehigh Valley Health Network’s flagship hospital, Lehigh Valley Hospital–Cedar Crest, which is the third-largest hospital in Pennsylvania.
Beyond its economic appeal, Allentown offers historic charm and modern conveniences. The city is packed with parks, museums, and entertainment options, including the PPL Center, home to concerts and sporting events.
Outdoor enthusiasts can enjoy hiking and biking along the Lehigh River or exploring the nearby Blue Mountain region.
With a booming housing market, strong job opportunities, and a vibrant community, Allentown stands out as one of the best places to live and invest in Pennsylvania in 2025.
Lancaster, PA
Population: 58,039
Average Home Price: $352,802 (+4.4% past year)
Average Rent: $1,154
Median Household Income: $63,421
Median Travel Time to Work: 23.4 minutes
Unemployment Rate: 2.9%
Lancaster
As one of the oldest inland cities in the U.S., Lancaster offers a unique blend of history, culture, and modern growth. Known for its charming downtown, rolling farmland, and thriving local economy, Lancaster continues to be a top destination for homebuyers and investors alike.
The average home price has risen 4.4% over the past year, reflecting the city’s strong real estate market.
With low unemployment (2.9%) and a diverse economy driven by healthcare, tourism, public administration, and manufacturing, Lancaster remains a top real estate investment opportunity in PA.
Beyond its economic strengths, Lancaster is rich in colonial-era charm and modern amenities. Stroll through Lancaster Central Market, the oldest farmers' market in the country, or explore the city’s many historic sites, art galleries, and boutique shops.
The surrounding Amish countryside adds a scenic and cultural appeal that sets Lancaster apart from other cities.
With its growing economy, strong housing market, and vibrant community, Lancaster stands out as one of the best places to live and invest in Pennsylvania in 2025.
Scranton, PA
Population: 76,328
Average Home Price: $167,405 (+12.0% past year)
Average Rent: $1,260
Median Household Income: $49,531
Median Travel Time to Work: 19.5 minutes
Unemployment Rate: 2.9%
Scranton
Once a hub of the coal and railroad industries, Scranton has reinvented itself as the economic and cultural center of Northeastern Pennsylvania.
With a booming real estate market—home prices have surged 12% over the past year—the city presents a strong investment opportunity in PA, particularly for those looking for affordable housing with high growth potential.
Scranton’s revitalized downtown is home to a growing business district, major healthcare providers, academic institutions, and manufacturing companies.
It’s also an education hub, with schools like The University of Scranton, Marywood University, Geisinger Commonwealth School of Medicine, Lackawanna College, and Johnson College providing a steady influx of students and professionals.
Despite its urban growth, Scranton retains its small-town charm with walkable streets, historic landmarks, and a lively arts scene. The city is also a favorite for fans of “The Office”, as it served as the setting for the popular TV show.
With affordable real estate, strong job prospects, and a mix of historic character and modern development, Scranton is one of the best places to live and invest in Pennsylvania in 2025.
Erie, PA
Population: 94,831
Average Home Price: $181,256 (+8.3% past year)
Average Rent: $799
Median Household Income: $43,397
Median Travel Time to Work: 18.6 minutes
Unemployment Rate: 3.3%
Erie
Perched on the shores of Lake Erie, this waterfront city offers affordable living, a diverse economy, and strong real estate potential. With home prices rising 8.3% over the past year, Erie presents a prime real estate investment opportunity in PA, especially for those looking for budget-friendly housing with long-term growth.
Erie’s economy remains rooted in manufacturing, but insurance, healthcare, higher education, technology, and tourism are becoming key players in the city’s economic future.
Its strategic location along the Great Lakes and St. Lawrence River network provides accessibility to global markets, making it a vital transportation and trade hub.
The city’s proximity to Pittsburgh and Cleveland adds to its appeal, offering convenient access to larger metro areas while maintaining a low cost of living.
With an average rent of just $799, Erie is also an attractive choice for rental property investors looking for strong returns.
Beyond business, Erie is known for its lakefront beauty and outdoor recreation. Presque Isle State Park offers boating, beaches, and scenic trails, while the city’s growing arts and dining scene continues to thrive.
With affordable housing, a growing economy, and excellent investment potential, Erie stands out as one of the best places to live and invest in Pennsylvania in 2025.
Bethlehem, PA
Population: 75,781
Average Home Price: $327,281 (+4.9% past year)
Average Rent: $1,363
Median Household Income: $66,443
Median Travel Time to Work: 22.4 minutes
Unemployment Rate: 2.8%
Bethlehem
With a rich colonial and industrial history, Bethlehem has long been a symbol of resilience and reinvention. Once dominated by steel production, the city has transformed into a thriving hub for business, culture, and real estate investment.
Bethlehem’s average home price has increased by 4.9% over the past year, reflecting its strong housing market and rising appeal for homebuyers and investors.
The city’s low unemployment rate (2.8%) and growing economy make it an attractive place to settle down or invest in rental properties.
Known as “Christmas City USA”, Bethlehem comes alive during the holiday season with its famous Christkindlmarkt and festive lights. But the city offers much more year-round, with a vibrant arts scene, historic Moravian landmarks, and a revitalized downtown filled with restaurants, breweries, and shops.
Bethlehem is in the midst of an economic and cultural renaissance, blending old-world charm with modern innovation. With its strong job market, increasing property values, and lively atmosphere, it remains one of the best places to live and invest in Pennsylvania in 2025.
State College, PA
Population: 42,034
Average Home Price: $383,764 (+2.7% past year)
Average Rent: $1,301
Median Household Income: $47,132
Median Travel Time to Work: 15.8 minutes
Unemployment Rate: 2.7%
State College
As the home of The Pennsylvania State University’s University Park campus, State College is a vibrant college town with a strong economy, a steady housing market, and a lively community.
Known for its high quality of life and walkable downtown, the borough is a prime location for both residents and investors.
With home prices rising 2.7% over the past year, State College remains one of the best real estate investment opportunities in PA.
The steady demand for student housing, faculty residences, and short-term rentals makes it an appealing choice for investors looking for reliable returns.
Beyond Penn State’s influence, State College offers a low unemployment rate (2.7%), a strong job market, and a thriving arts and entertainment scene.
Residents enjoy college football at Beaver Stadium, live music and performances, and an array of restaurants and coffee shops.
As the largest designated borough in Pennsylvania, State College blends academic energy, economic stability, and small-town charm, making it one of the best places to live and invest in Pennsylvania in 2025.
Reading, PA
Population: 95,112 (fourth-largest city in PA)
Average Home Price: $242,348 (+7.0% past year)
Average Rent: $743
Median Household Income: $45,599
Median Travel Time to Work: 23.6 minutes
Unemployment Rate: 4.1%
Reading
Nicknamed "The Pretzel City" for its deep-rooted baking tradition, Reading is a city rich in industrial history and modern revitalization.
Once a manufacturing powerhouse, it remains a center of industry and commerce, offering affordable real estate and strong investment potential.
The average home price has risen 7.0% over the past year, making Reading one of the best real estate investment opportunities in PA.
With some of the lowest rental prices in the state ($743 per month), the city presents an attractive market for investors seeking high rental demand and affordability.
Beyond industry, Reading is home to a diverse community with deep cultural and civic engagement. The city boasts historic churches, hospitals, recreational centers, schools, and colleges, as well as a thriving arts scene and a respected historical society.
Residents enjoy a mix of urban conveniences and small-town charm, with community events, local eateries, and scenic outdoor spaces.
With affordable housing, a resilient economy, and ongoing development, Reading stands out as one of the best places to live and invest in Pennsylvania in 2025.
West Chester, PA
Population: 18,461
Average Home Price: $610,824 (+4.1% past year)
Average Rent: $1,426
Median Household Income: $81,492
Median Travel Time to Work: 21.9 minutes
Unemployment Rate: 2.1%
West Chester
West Chester is a thriving suburban gem known for its charming downtown, strong job market, and prestigious university presence.
As the seat of Chester County, the borough is home to West Chester University of Pennsylvania's North Campus and numerous corporate headquarters, including Communications Test Design, Inc., VWR International, and QVC.
With a high median household income ($81,492) and a low unemployment rate (2.1%), West Chester continues to attract professionals, families, and investors alike.
The average home price has risen 4.1% over the past year, reflecting steady demand and making it one of the best real estate investment opportunities in PA.
The borough offers a walkable downtown filled with boutique shops, top-rated restaurants, and historic charm, making it one of the most desirable places to live in Pennsylvania. Its proximity to Philadelphia provides easy access to big-city amenities while maintaining a small-town feel.
With a strong economy, high quality of life, and steady home value appreciation, West Chester remains one of the best places to live and invest in Pennsylvania in 2025.
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