Allentown, PA Housing Market
AI-powered market intelligence for the Allentown-Bethlehem-Easton, PA-NJ metro area.
PropertyIQ Scores
Allentown, PA Market Analysis
Market Overview
Allentown’s housing market is strong, with a PropertyIQ Score of 87 out of 100. The score is supported by a 12-month home value momentum of 6.13 percent, a median days-on-market figure of 39 days, and a 13.0 percent share of listings with a price cut. The three-month momentum is -0.06 percent, which points to slight near-term cooling after a period of annual appreciation.
Compared with Pennsylvania benchmarks, Allentown has a different affordability and rental profile. The median home value is $365,871, well below the state average of $580,353. The rent index is $1,852, above the state average of $1,720. The unemployment rate is 4.0 percent, below the state average of 4.4 percent. Median household income is $84,587, below the state average of $103,556. This mix of lower home prices, higher rents, and lower unemployment supports the market’s high score, though the local income level remains below the state benchmark.
Key Trends
One trend is annual home value growth with short-term flattening. The 12-month home value momentum is 6.13 percent, while the three-month momentum is -0.06 percent. The median home value of $365,871 is significantly lower than the state median of $580,353, which may help sustain buyer interest from households priced out of higher-cost areas. The provided year-over-year home value figure is listed as $4; because that dollar figure is not clearly consistent with the 12-month momentum percentage, the momentum percentages are the primary price signal here.
A second trend is measured inventory turnover. There are 1,466 homes for sale, and the median days on market is 39 days. A 13.0 percent share of listings with a price cut suggests that sellers are not broadly reducing prices, but some negotiation is occurring.
A third trend is rental market strength. The rent index of $1,852 is $132 above the state average of $1,720. Combined with an unemployment rate of 4.0 percent, below the state average of 4.4 percent, this points to relatively stable tenant demand.
A fourth trend is affordability relative to income. Median household income is $84,587, below the state average of $103,556, but the median home value is much lower than the state average as well. This may keep homes more attainable for local wage earners than the state income comparison alone would suggest. Population growth data is listed as N/A, so demographic-driven demand trends cannot be evaluated from the provided data.
Who Is This Market For
Allentown may suit first-time buyers and move-up buyers who want lower purchase prices than the Pennsylvania average. The median home value of $365,871 is well below the state average of $580,353, and the PropertyIQ Score of 87 out of 100 indicates a relatively healthy market. The median days on market of 39 days suggests buyers should be prepared to move quickly, though the market is not extremely overheated.
Rental property investors may also find Allentown attractive because the rent index of $1,852 exceeds the state average of $1,720. The unemployment rate of 4.0 percent is below the state average of 4.4 percent, which supports tenant stability. With 1,466 homes for sale and a 13.0 percent share of listings with price cuts, investors may find some room to negotiate without entering a distressed market. Buyers or investors who rely on population growth as a demand driver should note that population growth data is not available in this dataset.
Outlook
The data supports a cautiously positive outlook for Allentown. The 12-month home value momentum of 6.13 percent and median days on market of 39 days indicate solid underlying demand, while the three-month momentum of -0.06 percent and the 13.0 percent price-cut share suggest a flattening rather than accelerating market. Lower median home values compared with the state, a higher rent index, and a lower unemployment rate provide fundamental support. The main limitation in the forward view is the absence of population growth data, which prevents any conclusion about longer-term demographic demand.
AI-generated analysis based on current market data. Last updated October 2, 2026.
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Allentown, PA market data
Allentown, PA Housing Market Overview
Allentown, PA's median home value is $366K, up 6.1% over the past year. Homes here sell in a median 39 days. Its PropertyIQ Score of 87 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
The Allentown, PA metropolitan area represents a distinct segment of PA's housing landscape. The PropertyIQ Score combines price momentum — how Zillow home values have trended over the past 3 and 12 months — with market-flow signals from Realtor.com that track how fast homes sell and how often sellers cut prices. The result is a single measure of how this market is positioned to outperform or lag its state over the next three years.
The Mid-Atlantic corridor benefits from proximity to major financial centers and government institutions. Housing markets in this region balance urban density with suburban expansion, creating varied opportunities from walkable city neighborhoods to rapidly growing exurbs. Within the Mid-Atlantic, Allentown, PA's PropertyIQ Score of 87 ranks among the Mid-Atlantic's stronger demand signals.
Pennsylvania's housing market spans from Philadelphia's dense urban neighborhoods to Pittsburgh's tech-driven renaissance and rural communities in between, offering diverse investment profiles at various price points.
Each month, PropertyIQ updates its score for Allentown, PA using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 6.1% over the past year.
Use PropertyIQ's interactive analytics to compare Allentown, PA against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
Counties in the Allentown, PA metro area
ZIP codes in the Allentown, PA metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Allentown, PA a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Allentown, PA currently scores 87, a strong-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $366K, up 6.1% over the past year. So whether Allentown, PA is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Allentown, PA?
Allentown, PA's PropertyIQ Score is 87, indicating strong momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 87 places Allentown, PA above its state benchmark.
Are home prices in Allentown, PA rising or falling?
Home prices in Allentown, PA are rising. Over the past year, the median home value increased 6.1%, reaching $366K. Over the latest three months, values slipped 0.1%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Allentown, PA's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Allentown, PA?
In Allentown, PA, homes sell in a median of 39 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 13% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Allentown, PA market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.