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Allentown, Pennsylvania (ZIP 18103) ranks No. 16 on Realtor.com®’s 2025 Hottest ZIP Codes list.
Situated in the Lehigh Valley region, Allentown offers a strategic location, relative affordability, and a mix of urban and suburban living that’s resonating with buyers in 2025.
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From January to June 2025, Allentown listings received 2.9 times more views per property than the U.S. average and sold in a median of just 24 days. The median listing price during that period was $433,000, putting it just below the national median of $440,000 and making it one of the more affordable markets in the Top 20.
A competitive player in Pennsylvania’s housing market
Allentown is the highest-ranked Pennsylvania market in this year’s list. Its appeal stems from its balance of price and location-close enough to commute to Philadelphia or New York City while offering more space and a lower cost of living.
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The city’s mix of single-family homes, rowhouses, and condos provides options for first-time buyers, growing families, and downsizers alike.
Its diverse economy, anchored by healthcare, manufacturing, and education, adds to its stability and long-term appeal.
Northeast’s continued momentum
Allentown’s performance reflects the Northeast housing market‘s dominance in 2025. With seven of the top 10 hottest ZIP codes and multiple others in the Top 20, the region is leading national demand trends despite higher borrowing costs.
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According to June 2025 housing data, national listings were still 12.9% below pre-pandemic levels, while the hottest ZIP codes averaged nearly 59% fewer listings than in 2019. In Allentown, limited supply has helped drive competition and shorten days on market.
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Urban access with suburban benefits
Allentown offers a combination of urban conveniences-like walkable neighborhoods, restaurants, and cultural venues-and suburban perks, including larger yards, parks, and community events. Its location along major highways and near Lehigh Valley International Airport makes regional and national travel easy.
The city’s proximity to the Pocono Mountains also adds recreational appeal, offering skiing, hiking, and outdoor activities within a short drive. This blend of lifestyle amenities and affordability has helped sustain demand from both local and out-of-state buyers.
Why Allentown’s market is moving quickly
With a median price of $433,000 and a median time on market of just under a month, Allentown offers significant value compared with many other Northeast markets. The speed of sales is driven by affordability and accessibility, which are especially attractive to first-time buyers and those relocating from higher-priced areas.
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While some national markets have cooled, existing-home sales trends show that affordable, well-located cities like Allentown are still seeing strong competition for available homes.
If current trends continue-tight inventory, steady in-migration, and strong local demand-Allentown will likely remain one of Pennsylvania’s most competitive housing markets and a contender for future hottest ZIP code rankings.
This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.
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The post Allentown Is One of the Hottest ZIP Codes in Pennsylvania-Here’s Why appeared first on Real Estate News & Insights | realtor.com®.