The Lehigh Valley’s housing market has just set a record, with the effects expected to ripple through the rental market. According to a report released on June 14 by the Greater Lehigh Valley Realtors (GLVR), the median sale price for a home in the region hit $370,000 in June, climbing past last year’s record and signaling ongoing demand despite high interest rates and limited inventory.
Homes are selling faster, spending an average of just 18 days on the market. At the same time, the number of available homes in Lehigh and Northampton counties dropped to 742 in June, down more than 4% from the year before.
New listings increased, and pending sales jumped nearly 16%. Buyers are still actively competing, especially while mortgage rates remain lower than they were in early 2025.
“Buyers and homeowners are seizing the opportunity presented by a brief dip in mortgage rates, with the Mortgage Bankers Association recently reporting purchase applications jumping 25% compared to this time last year, while refinance activity surged even higher,” said Justin Porembo, CEO of the Greater Lehigh Valley Realtors, in a news release. “In our region, those lower rates are translating into confidence at the closing table, pushing both prices and sales volume to improved heights.”
The impact on renters
With rising home prices and quickly selling houses, landlords are expected to sell off their rental properties, reducing the number of available units.
That’s likely to increase pressure on the rental market, leading to higher rents and more competition for apartments, especially in commuter-friendly areas such as Allentown, Bethlehem, and Easton.
What’s fueling the surge
The rise in home prices isn’t only due to low inventory. Mortgage rates dipped to around 6.7% in June, giving some buyers renewed motivation.
The Lehigh Valley also remains more affordable than many parts of the country — still about $50,000 below the national median home price — making it an option for people relocating from larger, more expensive cities.
Experts say the region remains thousands of units short of what’s needed to meet population growth.
“Even with a new record-high median sales price, the Lehigh Valley remains more affordable than many parts of the country,” Porembo said. “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.”
