BETHLEHEM, Pa. — Many people still see buying a home as a core part of the American dream.
But the dream and reality are far apart for many would-be homebuyers in the Lehigh Valley and beyond.
That’s based on a comparison to new data from Realtor.com, which uses the 30% affordability rule of thumb as a benchmark for whether buying a home is a sound financial decision.
Spending roughly 30% or less of pre-tax income monthly on housing leaves room for other expenses, as well as savings.Realtor.com report
Spending roughly 30% or less of pre-tax income monthly on housing leaves room for other expenses, as well as savings.
The latest Realtor.com affordability benchmark report broke down the most affordable metro areas across the country to buy a home based on the local median household income relative to a typical home’s list price.
The comparison of income and home prices highlights where buyers are most likely to find affordable options — and where they may struggle to buy.
What the report said nationally
As a benchmark, the report used an average home price of $440,000, requiring 44.6% of the typical household’s income to afford — well above the recommended 30%.
Of the 50 largest U.S. metro areas, only three were deemed truly affordable for households earning the median income, with one location in Pennsylvania.
Pittsburgh boasts home prices low enough that buyers can spend only about 27.4% of their income to cover the mortgage, taxes and insurance.Realtor.com report
Pittsburgh boasts home prices low enough that buyers can spend only about 27.4% of their income to cover the mortgage, taxes and insurance, the report said.
Those figures assumed a median list price at $249,900 in the Steel City — using data from May — plus a 20% down payment and a 30-year fixed mortgage at an average 6.82% rate.
The other metro areas falling at or under the 30% guideline in the report were Detroit (29.8%) and St. Louis (30%).
Two other Midwest metros — Cleveland and Indianapolis — rounded out the Top 5, falling just outside the 30% threshold.
Los Angeles, San Diego, San Jose, New York City and Boston were the least five affordable markets. The share of income needed in L.A. was listed at 104.5%.
How the Lehigh Valley compares
If you’re curious about how monthly housing costs would measure up against your budget, LehighValleyNews.com used the same formula to gauge affordability in the Lehigh Valley.
The formula assumes the current July 2025 30-year fixed mortgage rate of 6.77%, factoring in recent rate information from Zillow, Bankrate, NerdWallet, Mortgage News Daily, U.S. News Money and Rocket Mortgage.
The analysis also assumes a 20% down payment and the median effective property tax rates — along with insurance — on a home’s price annually.
In Allentown, buyers would need to spend 44% of their income, while the figure bumped to 47% in Bethlehem (with the average tax bill depending on the county and specific location within the city).
In Easton, buyers would need to spend 42% of their income to afford a home in the area.
| Area | Current Median List Price (Realtor.com) | Monthly Payment with Tax & Insurance | Median Household Income (U.S. Census Bureau) | Share of Income |
| Allentown | $275,000 | $2,047 | $53,403 | 44% |
| Bethlehem | $349,900 | $2,628 | $66,443 | 47% |
| Easton | $324,900 | $2,250 | $63,775 | 42% |
The methodology included the median household income by area based on the latest U.S. Census Bureau data.
Median list prices are from July 2025, based solely on Realtor.com data.
The report said housing costs could be improved with either lower mortgage rates or lower home prices, but experts don't expect mortgage rates to fall significantly in the near term.
The latest numbers from the Greater Lehigh Valley Realtors said inventory remains limited, buyer demand persists and many sellers still are getting receiving offers above list price.
All are signs of a competitive market as we moved into the summer season.
