​The Lehigh Valley region of Pennsylvania continues to do very well from an economic standpoint. It was the 6th largest economic region in the United States. The economy was larger than 3 states (Alaska, Vermont, and Wyoming), and if it were a country, the Lehigh Valley economy would be the 88th largest in the world! The Lehigh Valley was also #3 in the United States for economic growth in 2024, and was #1 in 2023.

Rising Income and Population Trends

The median household income was $81,709, which is higher than the U.S. and Pennsylvania median household income. It grew by a whopping $15,000 in the last 5 years!

As far as migration, some interesting statistics reveal that Lehigh County was among the Top 5% in the United States for people migrating here from other countries and overseas. Northampton County was among the Top 5% for people migrating here from other United States counties. Within the age group 18 to 41, the population grew 3%, while nationally, this age group on average grew by 0.34%. Note that the Northeast part of the country, of which the Lehigh Valley is a part, declined by 2.5% over the same time period.

Housing Market Challenges and Growth

The housing data is both good and bad. Lehigh Valley median home prices hit a record $375,000 in July 2025. While that is still considerably less than the national average of $435,300, the median home prices grew by 10.3% over the past year. The high increase in home prices is due to several factors—zoning restrictions and the state’s archaic permitting process. On a national level, for over a decade, the federal government and banks became far too restrictive with new home building. Much of this was due to the overreaction to the 2008–2009 housing crisis. “Building on spec” basically became non–existent for far too long (meaning you had to have a buyer under contract before building a home). The lack of sufficient home building over the past 15 years has created an extremely low inventory of available homes, so the laws of supply and demand took over and drastically elevated home prices.

The Rental Market: High Demand and Limited Supply

This housing shortage has also spilled over into the rental market. The Lehigh Valley region is the 2nd highest small market as far as competition in the entire country. There is a 96% occupancy rate and 15 applicants for every available rental! There is also an 82% renewal rate, which is extremely high. There has been a decent amount of new apartments and townhomes being built in the last few years, which have helped keep prices from really blowing up. The prices go from the low end ($1,550 per month) for the Allentown area, to around $1,885 per month for the areas of Bethlehem and Easton. A price of $1,550 is around 20% below the national average, and a price of $1,850 is around 6% below the national average. However, with the occupancy and renewal rates being so high, and the 15-to-1 applicant-to-available apartment ratio, there is going to have to be an extreme amount of building needed to occur to prevent significant increases in rental prices.

Affordability Concerns for Younger Generations

Nationally, renting is still cheaper by about 36% versus a monthly home mortgage. The issue here is that with the high rental and food costs, current renters are in a bind. They simply cannot put enough money away to afford the down payment for a home purchase, nor can they afford the amount of the monthly mortgage.

The inability to afford a home for younger people has been years in the making. It is going to take some serious discussions and some intervention from the federal government to make buying a home affordable again. Since this problem has slowly developed over the past 15 years and has been mostly ignored, it is going to be a slow thaw. Therefore, the sooner we address it, the better.

Moving to the Lehigh Valley? We’re Ready to Help

If you’re planning a move to or within the Lehigh Valley, we at O’Brien’s Moving & Storage are here to make it smooth, efficient, and worry-free. With decades of experience serving Allentown, Bethlehem, Easton, and the surrounding areas, we take pride in helping individuals, families, and businesses relocate with confidence and care.

  • Local and long-distance residential moves
  • Commercial and office relocations
  • Packing and unpacking services
  • Safe and secure short- and long-term storage options
  • Compassionate senior moving services

Whether you’re moving into one of the Lehigh Valley’s historic neighborhoods, a new apartment in downtown Allentown, or a home in the surrounding suburbs, we’ll handle every detail so you can settle in quickly and start enjoying everything this thriving region has to offer.