By Evan Jones | ejones@mcall.com | The Morning Call
The Lehigh Valley continues to be among the hottest small metropolitan area rental markets in the U.S., according to a new study from RentCafe.
The report found that the Valley is the second-most competitive market in the country with an apartment occupancy rate of 96.2% and a lease renewal rate of 81.9%. The average vacancy for an apartment is 45 days.
If you’re looking for an apartment or rental house in Lehigh and Northampton counties, it’s likely you’re competing with as many as 14 others for the same unit.
“The 2025 rental season is off to a tight start, despite new apartment construction hitting its peak in 2024,” RentCafe said. “In fact, only 8% of the major markets analyzed have shown any signs of easing compared to the start of last year’s moving season. Plus, while the number of available apartments has gone up by 0.72% compared to the 0.61% growth the year before, there still aren’t enough rentals to go around.”
RentCafe gives the Lehigh Valley a rental competitiveness index score of 90.9 out of 100, an increase of 1.3 over the year. The national average is 74.6. No. 1 Fayetteville, Arkansas, has a competitiveness score of 92.2.
Among similar sized areas in the state, Harrisburg was eighth with a score of 86.1. In the capital city, an average of 11 renters competed for the same unit while 79% renewed their leases.
RentCafe said the Lehigh Valley added apartments in the past year, with a 0.51% increase compared with just 0.1% a year ago. However, demand hasn’t let up and the renewal rate is up 7%. The occupancy rate is also up a half-percentage point.
Around the Valley, there are certainly buildings going up, and others being converted into living space. This year, the Lehigh Valley Planning Commission has reviewed buildings with nearly 1,000 units through May.
For instance, two projects are underway along Allentown’s riverfront — the River House at 30 E. Allen St. with 210 units, and the nearby Neuweiler Lofts, which will transform the former brewery into a mixed-use complex, with 283.
Repurposing buildings has become popular. The owner of the PPL Building in downtown Allentown plans to convert the iconic skyscraper into living space.
Affordable housing projects are on the drawing board in Allentown and Easton, where a member of city council has proposed a law that would encourage developers to provide homes for middle-income earners.
Easton is also the location of the Valley’s newest apartment complex, the Marquis. City Center Group has leased 62% of the 264 apartments in the downtown building, which is its first apartment project outside downtown Allentown.
LVPC numbers show that renters make up about 33% of households in the Lehigh Valley. It’s a 7% increase since 2005 and a 2% increase since 2018-19.
Among the big markets in the U.S., Miami had the highest rental competitiveness index score, 96.7. The Philadelphia suburbs were fifth at 81.7 and northern New Jersey was 11th at 79.6.