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Allentown-Bethlehem-Easton, PA-NJ housing market
Housing market indicators
| Indicator | 2022 | 2023 | 2024 | 2025* | Change | 2022 | 2023 | 2024 | YTD |
|---|---|---|---|---|---|---|---|---|---|
| Median Listing Price per Square Feet | $182 | $189 | $200 | $206 | 13.8% | 3.8% | 5.8% | 3% | |
| Active Listing Count | 1,104 | 1,000 | 1,189 | 1,403 | 18.1% | -9.4% | 18.9% | 18% | |
| Median Days on Market | 59 | 49 | 52 | 44 | 20.4% | -16.9% | 6.1% | -15.4% | |
| Share of listings with price increase | 1.4% | 0.9% | 0.8% | 0.7% | |||||
| Share of listings with price decrease | 10.6% | 11.2% | 13% | 12.7% | |||||
* last available value
Home prices
Short term housing supply drivers
Long term housing demand drivers
Long term housing supply drivers
Note: 12M MA - 12 months moving average, Permits - New Private Housing Structures Authorized by Building Permits. Source: FRED
Housing market overview
Allentown-Bethlehem-Easton, PA-NJ MSA Overview
- The Allentown-Bethlehem-Easton, PA-NJ Metropolitan Statistical Area (MSA) spans parts of Pennsylvania and New Jersey, centered in the Lehigh Valley region.
- Total population reached 886,418 in 2024, up from 861,575 in 2020, reflecting steady 0.66% annual growth.
- Area covers 3,763 km² with density of 235.5 people per km²; urban areas dominate with 686,638 urban residents versus 175,251 rural.
- Key cities include Allentown (pop. 127,138), Bethlehem, and Easton (pop. 31,018); towns like Emmaus and Hazleton also significant.
- Geographic regions: Lehigh County (core, industrial), Northampton County (north, logistics hub), Warren County NJ (east, suburban).
Cities and Towns Table
| Area | City/Town | Population | Density | Income | Quality of Schools | Crime Level | Property Tax (%) | Comments |
|---|---|---|---|---|---|---|---|---|
| Lehigh County | Allentown | 127,138 | High | Low-median | 5-8/10 | Moderate-high | 1.5-2.5 | Largest city, diverse population, logistics center |
| Northampton County | Bethlehem | 75,000 | Medium | Median | 7-9/10 | Low-moderate | 1.4-2.0 | Steel heritage, universities, growing tech |
| Northampton County | Easton | 31,018 | Medium-high | Low-median | 6-8/10 | Moderate | 1.6-2.2 | NJ-PA border, historic, college town |
| Lehigh County | Emmaus | 11,200 | Medium | High | 8-10/10 | Low | 1.3-1.8 | Suburban, family-friendly, strong schools |
| Lehigh County | Hazleton | 30,463 | Medium | Low | 4-6/10 | High | 2.0-2.5 | Industrial past, Hispanic growth, affordability |
To view all table columns, please open this table on a laptop or desktop screen.
Citizens: Income and Education
- Median household income $82,602 in 2023, up 5.1% from 2022; per capita aligns with PA average around $40,000.
- Income varies: Allentown low-median ($50k household), suburbs like Emmaus high ($90k+).
- Median age 41.4; education levels: 30% bachelor's or higher, strong in suburbs, lower in urban cores.
- Workforce: 55% white-collar, bolstered by Lehigh University and community colleges.
- Racial mix: 71% White, 8% Black, 8% Hispanic/other, 3% Asian; growing diversity drives demand for varied housing.
Key Economic Sectors
- Logistics/transportation: Lehigh Valley prime East Coast hub, warehouses for Amazon, FedEx.
- Healthcare: Major employers St. Luke's, Lehigh Valley Health Network (20k+ jobs).
- Manufacturing: Legacy steel transitioned to pharma, electronics (e.g., Air Products).
- Education: Lehigh University, Moravian University, community colleges.
- Retail/tourism: Bethlehem historic sites, Sands Casino; growing e-commerce support.
Housing Buying Market: Supply Drivers
- Zoning: Moderately open in suburbs, restrictive in urban Allentown/Bethlehem cores limiting multifamily.
- Regulatory strictness: PA environmental rules slow approvals; NJ side stricter on flood zones.
- Construction workforce: Costs rising 5-7% yearly, labor shortages from aging workforce.
- New permits: Steady at 2,000-3,000 units/year, focused on single-family suburbs.
- Inventory: Tight at 2-3 months supply, land availability good in outskirts.
Housing Buying Market: Demand Drivers
- Migration: Net in-flow 0.4% yearly, from NYC/Philly commuters seeking affordability.
- Growing industries: Logistics boom adds 5k jobs/year, healthcare expansion.
- Declining: Traditional manufacturing shed 2k jobs since 2020, pressuring older housing stock.
- Remote work: Post-2020 surge from urban exodus boosts suburban demand.
- Median home price $320k, up 8% YoY, driven by low rates pre-2023 hikes.
Key Challenges on the Housing Market
- Affordability gap: Prices rose 40% since 2020, outpacing wages in low-income areas like Hazleton.
- Inventory shortage: Aging housing stock, slow new builds amid high interest rates.
- Flood risks: Lehigh River prone, insurance costs up 20% in Easton/Northampton.
- Urban decay: Allentown blight, high crime deters families.
- Labor shortages: Construction delays average 6 months.
- No local income taxes beyond PA/NJ state rates (3.07-6.99% PA progressive, NJ flat 1.4-10.75%).
Investment Potential Table
| Area | Appreciation Potential | Risk | Key Drivers |
|---|---|---|---|
| Northampton suburbs (e.g., Bethlehem north) | High | Low | Logistics growth, low crime, top schools, commuter rail |
| Lehigh County outskirts (e.g., Emmaus) | High | Low-medium | Family migration, zoning flexibility, income growth |
| Allentown core | Medium | High | Revitalization projects vs. crime, low incomes |
| Hazleton area | Low | High | Job losses, high crime, poor schools |
| Warren County NJ | Medium-high | Medium | Spillover demand, lower taxes, flood risks |
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