From 2019 to 2023, the median cost of housing and rent have both increased by roughly 150%, following a dramatic increase in demand since the pandemic. In response to this the city has begun several programs seeking to increase density and affordability of housing. Most recently, this includes funding for first-time homeowners, rebuilding the some old affordable housing at Pembroke Village, and a five-year strategic plan "Opening Doors". 

In 2021, 77% of households in Bethlehem commute to work by driving alone in a car. Transportation accounts for 20% of greenhouse gas emissions in Bethlehem, and the Bethlehem Climate Action Plan (CAP) proposes several ideas on how to reduce car dependence. Their plans include methods of increasing walkability, bike-ability, and bus service to the city, investing in infrastructure and making it harder to park.

Two of the biggest environmental impacts cities have are trash and air pollution. Bethlehem's CAP seeks to reduce waste by increasing composting, recycling, and decreasing waste production. The city's yard waste facility currently accepts limited yard waste for composting drop off.

Bethlehem also has poor air quality in the Lehigh Valley, as it was ranked 79th worst in terms of air quality. In the summer of 2023, this was made much worse due to wildfire smoke giving the Lehigh Valley the worst air quality in the nation for a period in June.