The Allentown, Pennsylvania real estate market is experiencing steady growth with rising home prices and low inventory, appealing to first-time buyers and investors.

In recent years, Allentown has seen significant economic revitalization, driven by infrastructure projects and job creation, which has boosted demand for housing. The median home price in 2023 was approximately $220,000, a 6% increase from 2022, reflecting sustained buyer interest. Inventory levels remain tight, with active listings averaging around 1,200 units—a 15% decline from 2022—leading to competitive bidding and shorter time-on-market (median 35 days). Sales volume grew by 8% year-over-year to 3,200 transactions, supported by low mortgage rates and increased affordability compared to urban centers like Philadelphia.

The seller’s market dynamic is partly attributed to Allentown’s growing population, with a 2% annual influx from domestic migration and urban revitalization efforts. First-time buyers, comprising 58% of purchases, are drawn to entry-level homes priced below $250,000, while investors snap up properties for rental income, particularly in the $150,000–$300,000 range. However, affordability concerns persist, as the 30-year fixed mortgage rate averaging 6.5% in late 2023 has pushed some buyers to delay purchases. Despite this, the market’s resilience is underscored by a 2.5-month absorption rate, indicating minimal months of inventory, and a 12% rise in new construction permits in 2023. These factors position Allentown as a growth-oriented market with balanced opportunities for buyers and sellers.