What to Know About Living in Lancaster, PA

We’re glad you’re interested in Lancaster, Pennsylvania! There are many reasons why you should consider moving here, not just because US News and World Report named it the “Best Place to Retire in the US” for 2023. Living in this beautiful area has many advantages, from the thriving downtown city life to the strong sense of small-town community and unbeatable access to outdoor recreation. Lancaster is an attractive option for anyone looking to live close to a major city but desiring more of a suburban-style quality of life.

Learn more about living in Lancaster, PA, from its cost of living to some of its perks. To jumpstart your home search, we’ll profile its real estate market, including some of the best neighborhoods to call home.

What to know about Lancaster, PA

Lancaster is in Lancaster County, part of Southeastern Pennsylvania between Philadelphia and Harrisburg. Most people outside the region probably know of Lancaster for its association with the Pennsylvania Dutch Country, a top tourist spot in America. However, the county is actually home to many different people and cultures. Around 30,000 county residents identify as Amish, while there are over 550,000 residents in total.

As the county seat, Lancaster was founded by German settlers in 1730 and got its namesake from Lancaster County in England. Today it ranks as the third-best place to live in Pennsylvania thanks to its small-town charm and amenities.

Modern Lancaster has many heritage sites, including Lancaster County Courthouse and the Ephrata Cloister. The home of the 15th US President, James Buchanan, is a museum, while the Lancaster Central Market is the oldest farmer’s market building in America. Some of the area homes served as stops on the Underground Railroad. Plus, the metro has numerous important religious sites, traditional bakeries, and centuries-old farms.

With an active and diverse population of over 60,000 residents, the City of Lancaster has several neighboring towns with fascinating histories, including Lititz and Intercourse, which are part of the famous Dutch Country.

Food processing is one of the state’s top industries, and Lancaster is a center for several major food processing manufacturers. Large local manufacturers include Mars Chocolate North America and a Kellogg’s plant.

It’s also close enough to Philadelphia, which is easily accessible thanks to a downtown Amtrak station. A direct line can get you downtown in just over an hour. Or, you can drive there in about 90 minutes, depending on traffic. Baltimore is about the same drive time away. Harrisburg is the closest major center, which you can reach in under an hour by car.

Living in Lancaster provides convenience to major metropolitan centers and their amenities, but it is far enough away to preserve its small-town feel. The surrounding countryside is preserved with rolling farmlands and agricultural areas that it may never feel like it’s experiencing urban sprawl.

What is the cost of living in Lancaster?

You’ll be pleased to know that the overall living costs in Lancaster County are on par with the national average, based on Sperling’s Best Places Index. Housing typically runs 3% below average, but your health care, utilities, and miscellaneous costs are above average. Compared to Pennsylvania, the numbers tend to be close to what you’d expect to pay in the state.

Specifically to the city, Lancaster is 8.7% under the national average and about 3% less than the state. Housing was 27% below, while again, health care, miscellaneous, and utility costs are above the usual expenditures.

What is real estate like in Lancaster, PA?

As of early 2023, Lancaster’s real estate market echoes national trends. Overall sales are down, as is inventory, and median home prices are up. For reference, in February 2023, Lancaster City and the immediate surroundings had 611 homes for sale at a median of $280,000. This was up 3.7% year-over-year. The prices ranged from $25,000 to $5 million.

Lancaster has over 15 neighborhoods and suburbs to explore to find the perfect place to call home. Your choices include more of a downtown lifestyle where you can walk to attractions, single-family estate homes on several acres, to even run your own farm.

The city’s total millage rate for property taxes, including the school district tax, was 38.9041 in 2023.

Wherever you go, community clearly matters in Lancaster. The city mayor even has Block Party grants for neighborhoods to spend on food and event entertainment.

What are some of the best places to live in Lancaster?

Chestnut Hill

Located northwest of the central business district, Chestnut Hill is one of the more walkable and bikeable communities in Lancaster City.

Franklin & Marshall College borders the northwestern part of Chestnut Hill, so you’ll find students living in or near the community. Residents have what they need nearby, with nine groceries or restaurants, two schools, and two parks inside the borders. A craft coffee brewer, distillery, and indie shops add the neighborhood character. Families can walk to the North Museum of Nature and Science at Buchanan Park.

Homes here are a mix of historic and not-so-old, with a wide range of dates and the styles that reflect it. Some properties date to 1851, while others were built in 1980. You’ll find condos, townhomes, and single family homes in various sizes. The 19 homes for sale in February 2023 had a median list price of $287,000.

Cabbage Hill/SoWe

Founded by German immigrants, this southwest side community’s nickname apparently comes from the cabbages locals used to grow to make sauerkraut. Today the old tobacco companies, warehouses, and commercial ventures are mostly gone. However, some modern businesses have repurposed the remaining spaces.

The SoWe community organization is a resident-led group seeking to spur redevelopment in the area. Parts of the neighborhood are walkable to the down historic district or the Conlin Field Farnum Park. Two city parks border the SoWe area and provide it with recreational fields and playgrounds.

Architecturally, you’ll see many of the homes throughout Cabbage Hill share style characteristics. Many are two-story brick homes with arches over the windows and Victorian-period stylings. February 2023 had 22 homes for sale at a median of $202,000.

East Side

This part of town includes more of Lancaster’s historic commercial and residential buildings. The Conestoga River runs through on its way by the Lancaster Country Club and Conestoga Pines Park.

Local shopping is accessible from New Holland Avenue. Residents have big-name retailers close at hand, like Costco Wholesaler and Lowe’s Home Improvement. At the same time, there are boutique and long-running venues like the historic open-air East Side Market.

The Thaddeus Stevens College of Technology is on the south end, one of the town’s universities. Another local attraction is the interactive exhibits at the Lancaster Science Factory, a museum for kids up to grade 8.

The neighborhood had two homes for sale in February 2023 at a median price of $252,500.

Musser Park

Just northeast of downtown is Musser Park. It was one of the town’s earliest green spaces when it was built. Today the namesake green space hosts town festivals, summer camps, and special holiday events.

Residents live near the Lancaster Museum of Art and the other downtown attractions. It’s easy to walk around with sidewalks in the community.

February 2023 had 13 homes for sale at a median of $359,900.

East Petersburg

This suburb of Lancaster is just three miles from the town. You get a small community feeling here, where just 4,500 people live a laid-back lifestyle in the surrounding farm country.

For a town of its size, it has an impressive interconnected cycling path and park system. Its parks have playgrounds, sports fields, and a community park that runs a summer children’s program. The popular Roots Farmers Market is open all year round but only on Tuesdays from 9am-9pm.

The town has old and new construction options for housing, all on different lot sizes. In February 2023, it had 34 homes for sale at a median price of $325,000.

Lititz

This community outside Lancaster earned the moniker “Coolest Small Town in America.” Founded in 1742, the Moravian roots are still evident in the architecture and town events, like the Lititz Craft Beer Festival or the Farmer’s Market. Thanks to its historic Sturgis Pretzel Factory and the melt-in-your-mouth Wilbur Chocolate Factory, it draws its fair share of visitors.

People are attracted to the bustling downtown with its boutique shops, local dining, and entertainment. The charming downtown park is a public park, but it’s maintained and owned by the local Moravian Church.

Drive the tree-lined streets and quiet neighborhoods that exemplify small-town charm. While you’ll find many historic homes the closer you get to the town center, you’ll also find newer construction, townhomes, and active living communities.

The town had 236 homes for sale at a median of $439,900 in February 2023.

Living in Lancaster, PA

Lancaster is definitely worth considering if you’re looking for a beautiful place to settle down! Those looking to move to Lancaster will find plenty of recreational spaces, well-maintained neighborhoods with character, and numerous attractions to explore for art and history enthusiasts. Come experience firsthand what this enchanting city has to offer, and let a local real estate agent introduce you to Lancaster’s delightful neighborhoods!