Lehigh valley is the only region having affordable housing in PA? (Philadelphia: middle-class, houses)

[bluewin888]

I see prices are half of NJ, 1/3 of NYC price ; and these houses are 10-20 yrs old. Such houses cost $1M in NJ ; only $350 there.

It is 1.5 hr drive to nyc , better than Philadelphia

It has airport and economy is growing.

People are nicer and traffic is good. Schools rated 9 out of 10.




Has the housing price there growing ? It will increase value 50% next 5-10 years ?



Where are better places in PA with same level of price and everything?

[fatsquirrel]

Lehigh Valley is significantly more affordable than Philly I think. Most families that can't afford Philly can afford Allentown. Very popular for NYC expats.

[toobusytoday]

We sold our house in Garnet Valley School district, Delaware county for the same price we bought one in the Lehigh Valley. Your mileage will vary with every area.

[Patmcpsu]

On the whole, Lehigh Valley houses are cheaper than Philly. But once you dig deeper, you realize it's not an apples-to-apples comparison.

Philly suburbs are either "inner ring" (closer to the city with mass transit options, most houses are at least 50 years old, lots are a quarter acre or less) or "outer ring" (getting into the city is harder, houses are generally under 50 years old, lots are usually at least a half of an acre).

In Lehigh Valley, the vast majority of suburbs resemble Philly's "outer ring" suburbs, except that the lots in Lehigh Valley are usually only a quarter acre. Also, people in Philadelphia outer-ring suburbs tend to keep their houses up-to-date more often. If this makes sense:

• For houses in the Philly outer-ring suburbs, the "average price" assumes the kitchen/bathroom are up-to-date. If it's outdated, it's sold at a below-average price for the area.
• For houses in the Lehigh Valley suburbs, the "average price" assumes the kitchen/bathroom is outdated. If it's up-to-date, it's sold at an above-average price for the area.

So yes, houses in Lehigh Valley are cheaper, but outdated houses on smaller lots tend to cost less. If you want an updated house on a larger lot, your cost-savings for living in Lehigh Valley erode quickly.

And it's worth saying that Lehigh Valley's "low cost of living" pertains to housing only. Everything else (food, clothes, gas, etc) costs exactly the same as any other suburb. You'll only experience a true "cost of living" decrease if you're moving from a place like New York City.

[bluewin888]

Which region in pa will or has experienced great price increase? Lehigh or Philadelphia or areas in between ?

[Patmcpsu]

Originally Posted by bluewin888

Which region in pa will or has experienced great price increase? Lehigh or Philadelphia or areas in between ?

I would be more optimistic about Lehigh Valley's price-appreciation than Philly. But that's mostly because of its convenience for those fleeing NJ/NYC.

That being said, Lehigh Valley tends to attract the middle-class NJ/NYC types, whereas some other parts of PA near the NJ state line (i.e New Hope and Pike County) tend to get the upper class refugees, and when you have rich people bidding on things, prices are more prone to skyrocket. Some upper class people do move to Lehigh Valley, but not enough for an all-out bidding war (and there's too much housing-supply for one to ever happen there).

Speaking of housing supply, the Philadelphia metro-area is such a behemoth that the housing market is its own ecosystem. Increased demand from people fleeing NJ/NYC (or the DMV area, for that matter) will naturally increase prices, but there's such a glut of homes that prices won't spike across the board. Maybe some specific neighborhoods will get "hot", but guessing which ones would be speculation.

Being in college during the pre-2008 housing run-up, I've always been more concerned about the return of capital than the return on capital on my homes.

[bluewin888]

I saw Harrisburg area has fastest growth in whole state and housing there is even cheaper than Lehigh valley , where price is already boosted.

[bluewin888]

Three midstate counties are among the fastest-growing in the state, according to the latest estimates from the U.S. Census Bureau.
Last year, Cumberland County continued its streak as Pennsylvania's fastest growing county--increasing its population by nearly seven percent since 2010. Census estimates show the county has benefitted from people moving into the area.
Lebanon County edged out Centre and Lehigh counties in 2018 to become the state's second-fastest growing.
Lancaster County ranks fifth by percentage of growth. It's also third when looking at the number of people added, coming in behind Philadelphia and Montgomery counties.
Lancaster ranked high in "natural" population gain, meaning more people were born there than passed away.
While most midstate counties experienced at least some growth last year, a few saw losses.
Schuylkill County had one of the largest decreases since 2010, losing about 6,000 people.