A $3.5 billion pharmaceutical investment. Continued job growth. The nation’s No. 1 mid-sized market for economic development. 
The factors driving that economic strength were explored April 22 at the annual Lehigh Valley Real Estate Outlook.
“It's going on because of all you folks in this room and other rooms that are making decisions, making investments and doing the right things to move it forward,” Don Cunningham, President & CEO of Lehigh Valley Economic Development Corporation (LVEDC), told an audience of about 500 business leaders.
The event, hosted by the Greater Lehigh Valley Chamber of Commerce, featured several regional leaders who shared data and insights on the economy and development trends.
Cunningham noted the Lehigh Valley recently was named the No. 1 mid-sized market for economic development in the U.S., by Site Selection magazine, for the second time in three years.
He said the Lehigh Valley is competing for big investments such as Eli Lilly and Company’s manufacturing campus planned in Upper Macungie Township because leaders have partnered to prepare sites for development; to train a workforce; and to build a strong manufacturing ecosystem.
“We've got something unique going on here that much of the rest of the country would like to see, which is products made in America and sold to the world,” Cunningham said.
Another key driver of the region’s success is our desirable quality of life, which is attracting the talent employers need. Lehigh Valley is home to America’s best Main Street – Bethlehem; top minor league ballpark – Coca-Cola Park; best historic hotel – Historic Hotel Bethlehem; and No. 1 Music Festival – Musikfest, all as voted by readers of USA Today 10Best.
“That stuff wasn't happening before,” Cunningham said. “It's happening because of what we're doing and what's being recognized.”
Lehigh Valley is at all-time highs in employment, with nearly 344,000 jobs, and median household income, more than $84,000, higher than the state and nation. Cunningham said those are the statistics that matter most.
“Our mission is for everybody to have a good job that's commensurate with their skills, so they can raise a family and carve out a little slice of the American dream here in our 62 communities across the Lehigh Valley,” he said.
Growth and Housing
The Lehigh Valley’s population, now at nearly 709,000, is growing faster than ever, said Becky Bradley, Executive Director of the Lehigh Valley Planning Commission, which is leading a regional effort to ensure there is sufficient housing to accommodate that growth.
She said developers are working to meet that demand, as the commission reviewed plans for more than 6,000 housing units last year.
Other priorities of the commission are to work with local and state authorities on $544 million in transportation investments over the next four years, with a priority on expanding public transportation; creating Pennsylvania’s first regionwide stormwater management plan; and creating a plan to match infrastructure to properties that are ready for development.
Justin Porembo, CEO of the Greater Lehigh Valley REALTORS®, said the region’s housing market remains hot. Median sales prices are continuing to rise.
“We have things flying off the shelves pretty much at every price point,” he said.
He echoed Bradley’s comments about the need to build more housing. He said the Lehigh Valley is the second-most competitive rental market in the country.
Award-Winning Urban Redevelopment
The redevelopment of the Goodman Building in Bethlehem by Collaboration3 received the 2026 Lehigh Valley Commercial Real Estate Development Award. Collaboration3 is a partnership of architecture, construction, and engineering professionals.
The former furniture store, which had been vacant since the 1980s, was restored as a mixed-use commercial and housing space using historic elements.
“Golden Age” of the Lehigh Valley
A panel discussion by three developers shared insights into new projects that are in the pipeline.
“I think we're in the Golden Age of the Lehigh Valley, a whole new resurgence. It's really broad, whether it's healthcare, manufacturing, hospitality, we're seeing growth everywhere, in every sector of the market,” said Kevin Serfass, a third-generation leader of Serfass Construction Co.
The company plans to break ground in June on the Lehigh Valley’s first condo-for-sale building in 25 years, the Lynden in Easton, after seeing the success of new rental projects there such as The Marquis and The Confluence.
“We thought, you know, what can we bring something that's a little bit different?” Serfass said.
In July, the first residential building will open at The Waterfront, a mixed-use development along the Lehigh River in Allentown, said Zac Jaindl, President of Jaindl Enterprises. It will have 201 units, with other housing planned.
The Waterfront initially had been planned with more office space, but with market demand changing, the project is pivoting to maximize the site for residential use, he said. That will complement an office building that opened in 2023.
City Center Group will be delivering more apartments in downtown Allentown later this year. The pace of growth there isn’t as fast as it was in the past decade, but still holds potential for more investment, including a mixed-use building that’s scheduled to open on Center Square in 2027 in a former bank, said Maggie Reilly, Director of Asset Management at City Center Group.
Jaindl said the key to continuing the revitalization of the Lehigh Valley’s communities is for developers and public officials to collaborate.
“I think public-private partnerships are the most critical aspect of development today,” he said.
The discussion occurred live on WFMZ-TV on the “Business Matters” program hosted by Chamber of Commerce President & CEO Tony Iannelli.
The Lehigh Valley Real Estate Outlook was held at the Delta by Mariott in Upper Macungie Township. LVEDC was among the presenting sponsors.
(Photo by Rick Kintzel)