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The Center City area along Hamilton Street between 5th and 10th Streets was the primary shopping district in Allentown until the mid-1970s. The "Downtown", as it was referred to, was anchored by Hess's (9th and Hamilton); H. Leh and Company (7th and Hamilton), and Zollinger and Harned (6th and Hamilton) department stores. Along Hamilton street were scores of retail businesses; large banks; movie theaters and various small restaurants and lunch counters. On the second and third stories, professional offices could be found in many of the smaller buildings with storefronts on the first floor. Alfred L. Reichenbach, Mayor of Allentown in the late 1910s, traveled to Europe and saw beautiful hanging gardens and floral lamp posts in Paris and in some cities in Germany. He was also an amateur horticulturist and enjoyed all varieties of flowers and anyone visiting the mayor's office during his tenure would find vases of flowers for all seasons on his desk and tables. In fact, it was he who had floral boxes planted outside the mayor's window so he, and his fellow citizens, could enjoy seasonal floral designs. He believed that it would be a good way to beautify the downtown shopping district and encouraged the City Council with idea of purchasing the floral lamp posts during the renovations of Hamilton Street in 1916. 

Businesses generally operated from 9am to 5pm Monday-Saturday, staying open until 9pm on Thursdays and starting in the mid-1960s, also on Monday nights. Until 1952, Lehigh Valley Transit street trolleys operated east-west along the length of Hamilton Street, and also north and south along 8th Street. The major transit station downtown being at 8th & Hamilton.

In the 1950s, a privately owned parking lot system (Park & Shop) to accommodate shoppers and downtown workers began to be built by razing old buildings generally within a block of Hamilton between Walnut and Linden streets, with Hamilton Street merchants providing validation for shoppers parking tickets. In the early 1970s, Hess's and Leh's built large, private multilevel covered parking decks connected to their department stores to attract customers.

In 1966, the Whitehall Mall opened along MacArthur Road, just north of Allentown in Whitehall Township. It was the first enclosed shopping center north of Philadelphia when it opened. Having two major department stores (Sears & Roebuck and Zollinger and Harned) as anchor stores when it opened, its popularity led to the rise of a sprawling retail district along MacArthur Road that continued to expand into the early 1990s. After a major renovation in 1998, the Whitehall Mall's anchors included Bed, Bath & Beyond, Kohl's, and Sears. 

In the early 1970s, Hess's South, a satellite location of the Hess's downtown store, expanded to become the South Mall, located in South Allentown, at the city's border with Salisbury Township andEmmaus. Today, the South Mall's anchors include Gold's Gym, Petco, Staples, Stein Mart, and The Bon-Ton.

In 1976, the Lehigh Valley Mall opened, just south of the Whitehall Mall, at the intersection of U.S. Route 22 and MacArthur Road. With more than 140 stores, the Lehigh Valley Mall became the largest shopping mall in the region, and presently has anchors including Boscov's, JCPenney and Macy's. A large outdoor shopping addition opened in October 2007, and includes stores such as Appleand Barnes & Noble. Most recently, The Promenade Shops at Saucon Valley, a large, upscale outdoor shopping mall, opened just south of the city, near Pennsylvania Route 309 and Interstate 78, inUpper Saucon Township.

By the late 1960s, the development of suburban strip shopping centers (Lehigh, Crest Plaza, Two Guys, Mountainville, and Parkway) in the area during the late 1950s and 1960s and especially the opening of the indoor Whitehall Mall in 1966 were steadily reducing the number of shoppers along Hamilton Street. Consumers preferred the convenience of easy access via automobile, and the enclosed Whitehall Mall to the pedestrian outdoor sidewalk shopping which was found along Hamilton Street. The City of Allentown hired the firm of David M. Walker Associates in 1969 to explore the needs of Center City. The 1969 Walker Report concluded that automobile traffic had taken over the downtown shopping area and that a traffic-free business district between Linden, Walnut, Sixth and Tenth Streets be developed and to convert the downtown Hamilton Street shopping area to a "Semimall", later known as "Hamilton Mall". Traffic would no longer be allowed on Hamilton Street. The intersection of Eighth and Hamilton would be closed as well as all half streets intersecting Hamilton. This would create a large pedestrian shopping "superblock" between Center Square and 9th Street, with two smaller shopping blocks between Sixth and Seventh and Ninth and Tenth. Center Square would become a large, pedestrian only area with Seventh street being reduced to one lane on each side of the Soldier's and Sailor's Monument. Hamilton Street would be completely rebuilt, with the existing street removed and replaced by a raised brick walking surface. Large, enclosing canopies would be built on each side of the street to provide shoppers protection from the weather, and small buses would operate east-west between 6th and 10th Streets picking up and dropping off shoppers to give them easy access to retail stores. 

During a 30-day test in April 1971, traffic on Hamilton Street was shut down between Sixth and Tenth and Lehigh Valley Transit provided small buses, free of charge for shoppers. Walnut Street, which traditionally ran one way east to west, was reversed to run west-east, with traffic along Hamilton Street being diverted south to Walnut at Twelfth street for eastbound travel. Traffic moving westbound on Hamilton Street was diverted north at Sixth, then moved west along Linden to Twelfth, then south to Hamilton, giving the center city a circular traffic flow around the pedestrian-only Center City.

Problems quickly arose. It was difficult for small merchants downtown to receive deliveries, since the half streets were blocked and the narrow streets did not allow turnarounds of small delivery trucks. Also, the new restriction prohibiting automobile traffic on Hamilton Street was unpopular, and the proposed closing of the Eighth and Hamilton intersection was deemed impractical, since it blocked a major north-south route from South Allentown. Within a week, Eighth Street was reopened. The plan was also changed to allow limited two-lane automobile traffic on Hamilton Street one-way west to east, with limited drop-off and pick-up only parking. Traffic lights were installed at each major street and half street with a speed limit of 20 mph (32 km/h). The sidewalks would be expanded outwards with canopies covering them. 

Final plans were developed and approval was given by City Council in October 1971. Construction of Hamilton Mall began in early 1972, with construction lasting until 1974. Starting at 10th street and proceeding east, one full block at a time was closed to traffic with the existing street surface and sidewalks removed (including the old trolley tracks which had been asphalted over in the 1950s) along with the sidewalks on each side of the street. In addition, the famous downtown sidewalk street lights, which contained hanging flower gardens, were scrapped. Retail store street signs were also removed, including the large signature Hess's department store sign because they interfered with the sidewalk street canopies. The large parking areas at Center Square and comfort station under the square were also removed and turned into large brick sidewalks, along with the resurfacing of Seventh Street between Linden and Walnut Streets. 

The construction of Hamilton Mall caused severe disruption in the downtown shopping area for more than two years. During that time, merchants and Center City employees experienced enormous difficulties as sections of Hamilton Street were closed for months at a time. The sidewalks along Hamilton Street were reduced to single path walkways, and piles of rubble, construction material, the sounds of heavy construction equipment took over the downtown area. During the construction period shoppers tended to avoid the downtown area and shop in the suburban malls and shopping centers. 

Officially opened in 1974, Hamilton Mall never lived up to the expectations of the city planners. Large numbers of shoppers did not return to the downtown area. The opening of Lehigh Valley Mall in 1976 and other, smaller malls in the suburbs with outside satellite stores increased the number of businesses closing along Hamilton Street. The major expansion of MacArthur Road in Whitehall Township also led to fewer and fewer shoppers on Hamilton Mall. Improvements were made along Hamilton Mall by removing the overhead sidewalk canopies and installing a new generation of street lights, designed to replicate the hanging flower gardens of the ones removed in the construction were erected to improve the Mall's appearance. Parking meters were installed to allow longer term, but still limited parking. However, by the late 1970s, increased suburbanization led to a general decline in the popularity of the downtown shopping district. Retail shopping downtown declined with the closing of Leh's (1987) and Zollinger's (1978) downtown and culminated with the last major department store, Hess's, being sold-off in 1994, eventually being closed and subsequently demolished in 2000. Instead of a shopping Mecca, the use of downtown Allentown has turned into office buildings and increasingly has become a center-city campus for city and county government workers, along with those of PPL.

As of the 2010 census, the city was 58.5% White (43.2% non-hispanic white), 12.5% Black or African American (11.6% non-hispanic black), 0.8% Native American, 2.2% Asian, and 5.0% were two or more races. 42.8% of the population were of Hispanic or Latino ancestry, mostly made up of Puerto Ricans. 

The unemployment rate for the entire Lehigh Valley area is 9.8% as of February 2010, with Allentown's unemployment rate estimated at over 10%. 

As of the census  of 2000, there were 106,632 people and 25,135 families residing in the city. The population density was 6,011.5 inhabitants per square mile (2,320.8/km²). There were 45,960 housing units at an average density of 2,591.1 per square mile (1,000.3/km²). The racial makeup of the city was 72.55% White, 7.85%African American, 0.33% Native American, 2.27% Asian, 0.07% Pacific Islander, 13.37% from other races, and 3.55% from two or more races. 24.44% of the population were Hispanic or Latino.

There were 42,032 households in the city, of which 28.8% had children under the age of 18, 39.4% had married couples living together, 15.1% had a female householder with no husband present, and 40.2% had non-families. 33.1% of all households were made up of individuals and 12.8% had someone living alone who was 65 years of age or older. The city's average household size is 2.42 and the average family size was 3.09.

The city's population broken down by age ranges was 24.8% under 18, 11.2% from 18–24, 29.8% from 25–44, 19.1% from 45–64, and 15.1% 65 years or older. The median age was 34 years. For every 100 females, there are 91.8 males. For every 100 females age 18 and over, there were 87.7 males.

The median income for a household in the city was $32,016, and the median income for a family was $37,356. Males had a median income of $30,426 versus $23,882 for females. The per capita income for the city was $16,282. 18.5% of the population and 14.6% of families were below the poverty line. 29.4% of those under the age of 18 and 10.3% of those 65 and older were living below the poverty line.

Allentown operates as a Pennsylvania third-class city with the "strong-mayor" version of the mayor-council form of government since 1970 wherein the mayor serves as chief executive and administrative officer for the municipality and City Council serves as the legislative and oversight body providing checks and balances on the system. 

Elected "at-large", the mayor serves a four year term under the city's home rule charter.  The current city mayor is Democrat Ed Pawlowski, who replacedRoy C. Afflerbach after his single-term in office from 2002 to 2006. The legislative branch, the Allentown City Council, consists of seven council members elected at large for four-year staggered terms.  City Council holds regular public meetings in order to enact legislation in the form of ordinances and resolutions. The current president of the City Council is Michael D'Amore. The City Controller, who is responsible for the oversight of the city's finances, is also elected and serves a four-year term. 

Federally, Allentown is part of Pennsylvania's 15th congressional district, represented by Republican Charlie Dent, elected in 2004. The state's senior member of the United States Senate is Democrat Bob Casey, Jr.. The state's junior member of the United States Senate is Republican Pat Toomey, elected in 2010. The Governor of Pennsylvania is Republican Tom Corbett.

Allentown was named the 12th most conservative in America by the non-partisan Bay Area Center. 

For 2010, crime is down in the City of Allentown for the fourth consecutive year. The statistics were released May 25, 2011 as part of the FBI’s 2010 Preliminary Annual Uniform Crime Report.

The decline was led by a 31 percent drop in the number of homicides from 13 to 9. Motor vehicle theft fell 11.4 percent. Burglary was down 6.1 percent. Reported robberies, rapes and property crimes also fell. There were slight increases in the number of aggravated assaults and arsons. The number of violent crimes in the city has fallen more than 30 percent since 2006.

The city of Allentown is protected by the professional firefighters of the Allentown Fire Department( AFD). The AFD operates six fire stations in the city, and also operates a fire apparatus fleet of seven engines, two trucks, one Haz-Mat Unit, one Dive Unit, one Bomb Squad, one Fireboat, one Deputy Chief's unit, and one Battalion Chief's Unit.  The AFD responds to approximately 15,000 emergency calls annually, of which nearly 10,000 are for EMS assists.

Engine Company	Truck Company	Special Unit	Command Unit	Address
Engine 4, Engine 9			Battalion Chief, Deputy Chief	733 Chew St.
Engine 6	Truck 2	Bomb Squad		643 Ridge Ave.
Engine 10	Truck 1			2145 Turner St.
Engine 11(Quint)		Haz-Mat. Unit, Dive Unit		1901 Lehigh St.
Engine 13		Fireboat 1		720 N. Irving St.
Engine 14				164 W. Susquehanna St.

The City of Allentown is served by the Allentown School District, which is the fourth largest school district in Pennsylvania, with 18,118 students (based on 2005–2006 enrollment data). 

The city maintains two public high schools for grades 9–12, William Allen High School, which serves students from the southern and western parts of the city, and Louis E. Dieruff High School, which serves students from the eastern and northern parts. Each of these Allentown area high schools competes athletically in the Lehigh Valley Conference. Both schools play their home football games atJ. Birney Crum Stadium.

Allentown School District's four middle schools, for grades 6–8, include: Francis D. Raub Middle School, Harrison-Morton Middle School, South Mountain Middle School and Trexler Middle School. The city is served by 16 elementary schools, for kindergarten through fifth grade, including: Central, Cleveland, Hiram W. Dodd, Jackson, Jefferson, Lehigh Parkway, Lincoln, McKinley, Midway Manor, Mosser, Muhlenberg, Ritter, Roosevelt, Sheridan, Union Terrace and Washington. The Roberto Clemente Charter School, also located in the Allentown School District, is a Title I charter school which provides educational services to mainly Hispanic students in grades 6 through 12.

The Allentown School District is currently undertaking a 10 year, $120 million facilities improvement plan. The plan includes renovation of all 23 schools in the district. Most of the schools to be renovated will be expanded. Two additional elementary schools and a fifth middle school are expected to be built.  

Allentown has two parochial high schools, Allentown Central Catholic High School and Lehigh Valley Christian High School, though both schools draw students from both Allentown and the city's suburbs. Other Allentown-based parochial schools (serving grades K-8) include: Cathedral of Saint Catharine of Siena School, Holy Spirit School, Lehigh Christian Academy, Mercy Special Learning Center, Our Lady Help of Christians School, Sacred Heart School, Saint Francis of Assisi School, Saint Paul School, and Saint Thomas More School. The Roman Catholic-affiliated parochial schools in Allentown are operated by the Roman Catholic Diocese of Allentown. The Grace Montessori School is a pre-school and early elementary Montessori school run as an outreach of Grace Episcopal Church. The Swain School, a non-sectarian private school founded in 1929, is also located in Allentown. The city also has a private Jewish school, the Jewish Day School. 

Two four-year colleges are located in Allentown: Cedar Crest College and Muhlenberg College. A satellite campus of Lehigh Carbon Community College (LCCC), a comprehensive community college which offers two and four year degree programs, continuing education and industry training, is located in Center City Allentown.  

The city's primary airport, Lehigh Valley International Airport (IATA: ABE, ICAO: KABE), is located three miles (5 km) northeast of Allentown in Hanover Township. Newark (New Jersey) International Airport and Philadelphia International Airport, which are within an hour to an hour-and-a-half driving distance of Allentown, provide additional flight services to Lehigh Valley residents. The region is also served by Allentown Queen City Municipal Airport (ICAO:KXLL, FAA LID: XLL), a two-runway general aviation facility located in South Allentown used predominantly by private aviation. 

Four expressways run through the Allentown area, with associated exits to the city: Interstate 78, which runs from Harrisburg in the west to New York City's Holland Tunnel in the east; the Northeast Extension of the Pennsylvania Turnpike, (which is part of I-476), runs from Plymouth Meeting outside Philadelphia in the south to Interstate 81 at Clarks Summit in the north; Pennsylvania Route 309, which runs from Philadelphia in the south to The Poconos in the north; and U.S. Route 22, which runs from Cincinnati, Ohio in the west to Newark, New Jersey in the east. Public parking within Allentown is managed by the Allentown Parking Authority.

There are nine major inbound roads to Allentown: Airport Road, Cedar Crest Boulevard, Fullerton Avenue, Hamilton Boulevard, Lehigh Street, Mauch Chunk Road, Pennsylvania Route 145 (MacArthur Road), Tilghman Street, and Union Boulevard. 

Public transportation within Allentown is provided by LANTA, a public bus system serving Lehigh and Northampton Counties. Several private bus lines, including Bieber Tourways, Susquehanna Trailways and Trans-Bridge Lines, provide bus service from Allentown to New York City's Port Authority Bus Terminal, Philadelphia's Greyhound Terminal, Atlantic City's Bus Terminal, and other regional locations. 

Historically, Allentown has been served by Central Railroad of New Jersey, Conrail, Lehigh and New England Railroad, Lehigh Valley Railroad, and Reading Railroad. While Allentown currently has no passenger rail service (the last public rail service, which was part of the Bethlehem-Philadelphia service provided by Conrail under contract with SEPTA, ceased operating in 1979), several of the Allentown-area stations once used for passenger service have been preserved through their current commercial use. In November 2008, the Lehigh Valley Economic Development Corporation (LVEDC), along with both Lehigh and Northampton Counties, commissioned a study to explore the merits of expanding the New Jersey Transit line to the Lehigh Valley, which would potentially include stops in Allentown, Bethlehem and Easton. 

Allentown is a regional center for commercial freight rail traffic. Currently, Norfolk Southern's primary hump classification yards are located in Allentown, and the city is also served by the R.J. Corman Railroad Group. 

Allentown and the Lehigh Valley area were once served only by the 215 area code from 1947 (when the North American Numbering Plan of the Bell System went into effect) until 1994. With the city and region's growing population, however, Allentown and its surrounding areas were afforded area code 610 in 1994. Today, the city of Allentown is covered by 610. An overlay area code, 484, was added to the 610 service area in 1999.  A plan to introduce area code 835 as an additional overlay was rescinded in 2001.

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