When the pandemic hit, many northeastern markets experienced a population decline as Americans flocked to Southern states and the Sunbelt. However, Lehigh Valley in Pennsylvania might be an outlier to the trend, which is creating opportunities for developers in the area.
In Lehigh Valley Economic Development Corp.'s third quarter (LVEDC) report, the region's population was 696,800, among the Keystone State's fastest-growing areas. Additionally, according to the report, citing information from Site Selection Magazine, Lehigh Valley ranks first among mid-size areas of economic development.
LOCATION AND AFFORDABILITY ATTRACTING RESIDENTS
Recommended For You
What makes the regions attractive for companies and residents? It's the location, according to Kristin Cahayla-Hoffman, vice president of business development and attraction at LVEDC, a local nonprofit partnership that aims to support economic and job growth. For example, Lehigh Valley is within roughly two hours of major surrounding metro areas, including New York City, Philadelphia, Washington D.C., and Baltimore.
"About a third of the US consumers you can hit within a day's drive," she told GlobeSt.
"That's one of the critical things that brings companies to the Lehigh Valley."
Being within proximity of those metros gives it access to major infrastructure, such as the Ports of New York and New Jersey and airports like the Newark Liberty International Airport. Also, affordability compared with the other metros attracts people to the Lehigh Valley, according to Cahayla-Hoffman.
"We're a little bit more affordable than the New Jersey, and the New Jersey Metro market as well," she pointed out.
MAJOR REDEVELOPMENTS UNDERWAY
As the population surges, it offers an opportunity, with many developers looking to turn aging buildings into modern districts. There are a slew of major projects in Lehigh Valley underway, including The Waterfront, a $425 million redevelopment that's transforming an industrial site into an office-retail-residential complex. Currently, the project is in its second phase.
There's also Bethlehem Steel, which is a 1,800-acre conversion of a steel production facility into multiple other uses including entertainment and industrial parks. According to the Pennsylvania Department of Environmental Protection, the redevelopment has attracted more than $1.5 billion of investments, while creating thousands of new employment opportunities.
BIGGEST OPPORTUNITY IS IN HOUSING
While Cahayla-Hoffman noted that there will be plenty of other chances for developers to modernize into other asset classes, she thinks the biggest opportunity is in residential in Lehigh Valley, as the housing shortage remains an issue nationwide.
"Residential is definitely something that we need more of here," she said.
Additionally, Cahayla-Hoffman said industrial might be attractive for developers, given the low vacancy rate in the market, which was 6.6 percent in LVDEC's third quarter report.
COMPANIES STILL SHOWING BIG INTEREST IN LEHIGH
"Over the last decade, we've had a tremendous amount of growth that's happened here, not only on the residential side, but on the industrial side [too]," she said.
"We've seen a lot of, a lot of growth [and] a lot of companies coming here."
Meanwhile, LVEDC is currently working on recruitment efforts to bring more jobs and businesses to Lehigh Valley. The nonprofit specifically is targeting what it calls "high value" sectors, which includes life sciences, advanced manufacturing, food and beverage and professional/creative services.
"We still have a lot of inquiries, a lot of companies that are interested in the area," Cahayla-Hoffman emphasized.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
