Buying a home has become more expensive than ever in Pennsylvania's Lehigh Valley, a local trade group said this week.
The median home sales price for the Allentown–Bethlehem–Easton area grew 2.3% in June to a record $370,000, according to Greater Lehigh Valley Realtors. The number of closed sales in the region also rose 9.3% year over year in June to 684.
Buyers are snatching up homes in part because they recognize Lehigh Valley is one of the few places where prices are still within their budget, the group said.
"Even with a new record-high median sales price, the Lehigh Valley remains more affordable than many parts of the country," Justin Porembo, the group's CEO, said in a statement. "Nationally, home prices rose 1.3% year-over-year to $422,800. Our market continues to offer strong value for buyers who are priced out of larger metro areas but deserve access to a great place to live and work like the Lehigh Valley."
Lehigh Valley is Pennsylvania's third-largest metropolitan area by population, behind Pittsburgh and Philadelphia. The region has seen its population swell by the thousands — 7,000 alone between 2023 and 2024, according to U.S. Census estimates — causing a housing affordability crisis, local officials say.
Housing construction has stalled for nearly a decade as more people pile into the region, creating a housing shortage of roughly 9,000 units that is "pricing families out of neighborhoods," according to the Lehigh Valley Planning Commission. The region will need another 54,000 units by 2050 to keep up with today's housing demand, the department said in a study.
Lehigh Valley set its previous sales price record in June 2024 at $361,550, the group said. The organization also noted that inventory fell 4.3% in June year over year to 742, while new listings climbed 10.1% to 829.
The flurry of Lehigh Valley homebuying comes just weeks after mortgage rates dipped briefly to 6.77%, according to mortgage giant Freddie Mac. Rates have since then fallen to 6.72%.
"In our region, those lower rates are translating into confidence at the closing table, pushing both prices and sales volume to improved heights," Porembo said.