A faster-than-expected growth in population is driving the Lehigh Valley’s economic renaissance, with more new projects ready to come online or be announced. Employment opportunities and the region’s high quality of life are drawing people here, and new housing construction must be accelerated to meet the demand. 

Those were the takeaways from the sold-out 2025 Lehigh Valley Real Estate Outlook held by the Greater Lehigh Valley Chamber of Commerce on April 24 at Wind Creek Bethlehem, attended by about 525 people. 

Lehigh Valley’s population has grown to about 708,000, an increase of 28% since 1995. 

“They've come in for jobs and opportunity. They are the fuel that burns the fire of economic growth in the Lehigh Valley,” said Don Cunningham, President & CEO of Lehigh Valley Economic Development Corporation (LVEDC), a Presenting Sponsor of the Real Estate Outlook.

The Data

Cunningham shared that Lehigh Valley’s Gross Domestic Product is a record $55.7 billion, greater than the output of three states – Alaska, Wyoming, and Vermont.

The economy is diversified, led by manufacturing and followed by finance, insurance, and real estate; healthcare and education; and professional business services.

Last year, the Lehigh Valley was ranked the No. 3 mid-sized market in the U.S. for the number of new economic development projects. Lehigh Valley ranked No. 5 in the Northeast, among communities of all sizes.

The number of jobs is at a peak, 340,087, a growth of 37% since 1995.

Median household income is a record of $81,709, exceeding the state and nation. Poverty has been falling to 10.5%, again better than the state and nation.

Lehigh and Northampton counties are among the fastest growing in Pennsylvania, and Northampton leads the state in growth of young adults, ages 18-34, a desired demographic by employers.

The Strategy

LVEDC is prioritizing the recruitment of high-value businesses, Cunningham said. They include life sciences and biotech, technology including semiconductors, professional and creative services, and other advanced manufacturing including food and beverage producers. 

“Much of our economic growth is happening organically. It's market driven,” Cunningham said.

“Our quality of life assets, our resources are why people come and stay. Brew pubs, downtowns, all these great things that make it happen. We have great bases in that area, and we have great opportunity to grow those parts of our economy,” he said.

Increasing Awareness of Lehigh Valley

Cunningham opened his remarks by recalling how LVEDC was created 30 years ago by forward-thinking business leaders to reshape the economy regionally, and also market the community regionally.

He said while much progress has been made, more must be done to promote the Lehigh Valley as the thriving community it has become, as some people haven’t gotten that message.

“We still have work to do in telling our story,” Cunningham said. “Despite all the great recognitions that we've been bringing up in the cities of Easton and Bethlehem and Allentown and all of our facilities, they still have some identification with days long gone when this wasn't a hotel and casino, but when it was a steel mill that went vacant. Therefore, I think one of the most important things we need to do as a region is work together on branding and telling the story of the Lehigh Valley today.”

LVEDC is working with partners including Discover Lehigh Valley ® and the Greater Lehigh Valley Chamber of Commerce to spread that word. Cunningham asked everyone in attendance to use resources, including videos and logos that are available on LVEDC’s website, “and proudly declare that you are part of the Lehigh Valley.”

Commercial Real Estate Development Award

The city of Easton, which has attracted more than $460 million in private investment since 2021, received the 2025 Commercial Real Estate Development Award. The city has transformed its downtown with projects like Easton Public Market – voted the No. 1 public market in the U.S. in 2023 by readers of USA Today – and several new mixed-used buildings.  

“I want to say thank you to all the people who made this possible,” said Mayor Sal Panto Jr., who accepted the award. “It takes a lot of public and private people to do this.”

He credited partners including Greater Easton Development Partnership, the Greater Lehigh Valley Chamber of Commerce, and developers including Ashley Development, VM Development, Optima Durant Group, Peron Development, City Center Group, and Gusto Group.

Panto said the city is working with a consultant to reimagine its riverfronts – both the Lehigh and Delaware rivers.

“As more and more young professionals move to downtown, they're looking for outdoor recreational opportunities,” he said.

He cited several recent projects of note including:

• Heritage Riverview, the $10 million transformation of a former bowling alley into headquarters for Hearst Publishing Lifestyle Magazines.
• The Commodore, a $25 million apartment-retail-restaurant complex that opened last year.
• The Marquis, a $75 million residential and commercial building expected to open soon.
• Watermark Apartments, $35 million, expected to open in June.
• Great Square Hotel, expected to open in a year or two.
• The Confluence, a $70 million resident and commercial building expected to open in 2027. 

Housing and Transportation

Lehigh Valley is projected to add another 100,000 people by 2050, said Becky Bradley, Executive Director of the Lehigh Valley Planning Commission.

The increasing demand to live in the region has resulted in a great need for more housing, she said. The region currently is 9,000 housing units short, and another 54,000 homes will be needed by 2050 to accommodate the growing population. About 2,000 units are being approved annually by local governments, Bradley said.

“Right now, we're falling short, but it is achievable if we work together,” she said. “The challenge with the backlog of development is that we're constantly working to meet a demand that is continuously growing.”

The commission is working with the Urban Land Institute and Lehigh County on a housing strategy, including addressing rising costs.

“Development is moving, but it will take a collaborative effort between industries and sectors, as well as an intentional approach, too, in order to address the shortage,” Bradley said 

She also outlined improvements that are proposed or planned to Lehigh Valley roadways and its mass transportation network.

Developers Panel

Chamber President & CEO Tony Iannelli held a “What’s Trending in Lehigh Valley Development” panel discussion broadcast live on his Business Matters program on WFMZ, which livestreamed the Real Estate Outlook.

Dave Jaindl, President of Jaindl Land Company, said his company has 65 projects underway. They include the Lehigh Valley Town Center, featuring a coveted Topgolf, 550 apartments and 150,000 to 160,000 square feet of commercial space in Lower Macungie Township near Route 222 and Interstate 78.

Nicolas Dye, Managing Member of D&D Realty Group, provided an update on his company’s $35 million renovation of the PPL Tower into 112 apartments. He said demolition is underway and apartments should be ready by next year.

“Our expectations are pretty high for the project,” Dye said.

Plans for the adjacent North Building remain undetermined, but there’s a good chance it will become something other than housing, he said.

Jill Wheeler, Vice President, Lehigh Valley at City Center Group, said the company’s sixth office building will be announced soon. The company recently opened the Moxy Hotel and Archer Music Hall in Allentown, and has invested $800 million in center city Allentown, primarily office space and apartments.

“We're extremely bullish about the Lehigh Valley. I think the opportunities are endless,” she said.

(Moxy Hotel photo courtesy of City Center Group. Easton photo by The Creative Services Department. Other photos by LVEDC.)