A new report from market research firm Construction Coverage will come as no surprise to Lehigh Valley renters: Rents continue to rise, with the median figure in the Allentown-Bethlehem-Easton area $1,857 per month. Finding enough space for a family or for roommates costs even more, with median area rents for three-bedroom apartments hitting $2,328 per month. The median monthly rent on a studio in the area is $1,291.

Although these are inflationary times, the 3.6 percent housing cost increase from 2024 to 2025 in the Valley topped the official Consumer Price Index (CPI) rise of 3.0 percent.

Some financial analysts have questioned the validity of the CPI. For example, since January 1999, the Bureau of Labor Statistics, which computes the figure, has used a geometric mean calculation that the agency admits “does not account for consumer substitution taking place between CPI item categories.” For example, if the price of beef rises more rapidly than the price of pork, and consumers respond by substituting pork for beef purchases, the CPI method of calculation dampens the effect of the price increase, rising by less than it would rise if a fixed purchase pattern model were used.

Regardless of whether rents are rising higher than other living expenses in the ABE area, data show that it costs more to live in the Valley, with non-homeowners subject to greater potential volatility. And although CPI data is typically released monthly, income data has a multiyear lag. For example, the most recent median income data available for the Lehigh Valley was released in January 2025 and reported on 2023 data from the U.S. Census Bureau. (The 2023 median income figure for households in the Lehigh Valley was $81,709.)

One way some renters – individuals over 65, widows and widowers over 50, and individuals with disabilities over 18 – can take the edge off the prices is applying for a rebate from the state. The Pennsylvania Department of Revenue provides an online application for property tax (for homeowners) and rent rebates (for renters) for taxes and rent paid in 2025 at its website (mypath.pa.gov). Income limits are indexed to the cost of living. The Bethlehem Housing Authority at 610-865-8300 can help with information on income limits.

The full market research report cited above, which relied upon U.S. Dept. of Housing and Urban Development and U.S. Census Bureau data, is available online at: constructioncoverage.com/research/cities-with-the-most-expensive-rents.