The Fall Fetch:

Lehigh Valley Real Estate Market Recap. (Q3 2025)

Executive Summary:
Key Findings and Market Overview

The Lehigh Valley is a metropolitan region encompassing Lehigh and Northampton counties in eastern Pennsylvania. With a population of approximately 886,000, it is the third-largest metropolitan area in the state and the 66th-largest in the U.S.

Allentown, Bethlehem, and Easton are its largest cities. The region has experienced significant population growth, especially among 18- to 34-year-olds, due to its proximity to cities like New York City and Philadelphia, lower costs of living, and a diversified economy.

Executive Summary (through Sep 2025)

Home Values (ZHVI)

~$352,800

+3.3% YoY

Listings go pending in ~11 days.

Rents (ZORI, MSA)

$1.830 (August 31, 2025)

+4.0% YoY

Labor Market (MSA)

Unemployment 4.8% (Jul 2025)

Local Tightness

Months of Supply (GLVR region)

1.4 (Aug 2025)

Average Days on Market:

20 days.

Bottom Line:

Rents are outpacing prices YTD.
Supply remains tight locally
Employment is steady-to-soft but supportive.

Neighborhood Spotlight

Central Bethlehem

Strong momentum (+11.3% YoY in Aug)

Southside Easton

+14.4% YoY (Aug) with median around mid-$200s.

Factors Driving the Lehigh Valley Real Estate Market

Strategic Location:

Proximity to major metropolitan centers like Philadelphia and New York make the Lehigh Valley an attractive option for those seeking a more affordable option without sacrificing access to these cities. Good transportation connections, including interstate highways, make getting around easy.

Economic Growth:

The region has diversified its economy, shifting from an industrial base to sectors such as healthcare, education, logistics, and technology. This has generated employment and attracted new residents. Major companies have a presence in the area, contributing to economic stability.

Quality of Life:

Lehigh Valley offers a good quality of life with a relatively lower cost of living than nearby larger cities. It features green spaces, parks, prestigious educational institutions (such as Lehigh University and Lafayette College), a growing cultural and culinary scene, and an attractive community atmosphere.

Supportive of Family Life:

Good schools, safe neighborhoods, and a variety of family activities make the Lehigh Valley an attractive place to raise children.

Current State of the Housing Market in the Lehigh Valley

In recent years, the Lehigh Valley real estate market has seen a significant increase in home prices, driven by demand outpacing supply. This imbalance has created a highly competitive environment, where well-located and reasonably priced properties often receive multiple offers and sell quickly.

Available inventory has historically been low, consolidating a seller-dominated market. Properties tend to remain listed for a short time before closing. Furthermore, the rental market remains strong, attracting investors looking to take advantage of property appreciation and steady demand from a growing population.

The market offers a variety of options, from single-family homes to condominiums and multi-family properties, each with its own supply and demand dynamics.

Residential Property Prices (2025)

  • June 2025 was a record month for average price ($370k) and high sales activity, with low inventory (1.3 months).

  • July maintained or exceeded these results in sales and prices.

  • August continued with the same trend: strong demand, tight supply, and stable or rising prices, according to GLBR and recent trends.

Lehigh Valley Investor Analysis

The rental market in the Lehigh Valley remains strong, with high demand and good occupancy rates, representing an attractive opportunity for investors. To maximize income, it's essential to evaluate average rents by area.

Over the long term, the region shows solid potential for property value appreciation, although the pace of growth may vary. When considering new investments, it is key to analyze the location, condition of the property, rental potential, as well as interest rates and general economic conditions, as these factors directly impact profitability.

Regional optimism for the summer: Market strength is projected to continue into the summer, including August, supported by solid demand, tight supply, and persistent buyer and investor interest.

Key Factors:

  • Mortgage rates remain relatively low compared to previous years, stimulating activity.

  • Inventory remains limited (~1.3 months), which boosts competitiveness

  • The typical climate: fast sales, strong prices, pressure on buyers.