BETHLEHEM, Pa. — Apartment hunting in the Lehigh Valley is ultra-competitive, a new report says, with the region ranking as the third-most in-demand small rental market in the United States.
That’s according to RentCafe’s Rental Competitiveness Index, or RCI, on which the area scored a 92.4 out of 100, with demand continuing to outpace supply, despite a modest increase in new construction.
The Lehigh Valley’s universities, strong job market and proximity to Philadelphia and New York are key to drawing in students, young professionals and commuters, the report said.
Lafayette, Indiana, and Fayetteville, Arkansas, were the only small markets to rank higher for apartment-hunters, with the Midwest claiming seven spots overall in the top 20.
16 would-be renters for each apartment
The overall demand is leaving renters in the area with few options.
Less than 4% of apartments in the region are available, the report said, and each vacant unit draws an average of 16 prospective renters.
Apartments in the area are leasing within 38 days on average, according to the report. And though lease renewals remain among the highest in the nation, they dipped from 79.6% to 77.7%, ranking third in the nation behind Central Jersey (79.9%) and Rochester, New York, (78.1%) for small markets.
Overall, the national RCI score was at 74.6, reflecting a tight rental market overall.
While more than 640,000 apartments were built in 2024 — and with 506,000 more expected this year — supply can't keep pace with demand, the report found.
As a result, occupancy dipped to 93.4% and vacant units are lingering about 40 days on average across the county.
Miami led the nation among large markets with a score of 92.2, followed by Chicago (89) and Manhattan (85.1).
Renting vs. home ownership in the Lehigh Valley
The Lehigh Valley’s position among the Top 3 small rental markets highlights how much pressure local renters are feeling, but that’s just one side of the housing market continuing to squeeze budgets.
Last month, data from the U.S. Census Bureau’s latest American Community Survey, or ACS, showed the median monthly owner costs for U.S. homeowners with a mortgage increased from $1,960 (inflation-adjusted) in 2023 to $2,035 in 2024.
At $1,775 monthly, Pennsylvania’s costs for homeowners fell below the national average, but costs in the Lehigh Valley were above the statewide average.
Lehigh County came in at $1,953, and costs in Northampton County were at $1,886.
Across the state, 5.3 million housing units are occupied, with 69% owned and 31% rented, the data showed.
Renter households make up a significant share in the Lehigh Valley: 35% in Lehigh County (50,477 units) and 28% in Northampton County (34,257 units).
Michael Bernadyn, president of Greater Lehigh Valley Realtors, told LehighValleyNews.com that prospective buyers have to be prepared to bring more cash to the table if they’re looking to shift from renter to homeowner.
“We're not seeing the ones that are kind of, ‘Hey, you know what? We just decided we're going to buy a house, and we contacted ABC mortgage, and they got us a loan.’
“Basically that's really what we're seeing, that more informed buyer,” Bernadyn said.
