Allentown Pennsylvania Investment Real Estate: The Complete Guide

No matter where you call home in the Lehigh Valley, most people agree that Allentown, Pennsylvania is pretty special. With a host of things to do, consistent economic growth, and a rich history, it’s the perfect marriage of charm and modern amenities.

So, for anyone who’s exploring their options as a real estate investor in the Lehigh Valley, Allentown likely tops your list of local cities in which to start your search. To help you embark on this investment journey, we’ve put together a guide highlighting all things Allentown, along with insights and details you need to buy an investment property there.

Allentown, Pennsylvania Is a Lehigh Valley Investment Gem

Of all the places to begin your real estate investment journey, Allentown is a true gem. And when properties become available, they certainly don’t last long, with an average of nine days before selling. Home values are up, too, by about 19%, as are employment and the general population, each approximately by 1%.

Allentown offers the best of both urban and rural advantages. And if the city life isn't what you had in mind, you can always explore these Allentown suburbs, equally fantastic settings for real estate investment properties. 

• Nazareth
• North Catasauqua
• Helle
• Emmaus
• Freemansburg
• Topton Walnutport
• Alburtis
• Macungie
• Quake

The City of Allentown sprawls across 17 square miles in total and has an average population of over 120,000. And within its city limits, you can explore a host of real estate diversity, including manufacturing facilities, commercial properties, city lifestyle amenities, and suburb-like tranquility within its residential neighborhoods. With all this bustling activity comes tons of restaurants, shopping, nightlife, and seasonal festivities, too. Allentown really does have something to offer everyone.

Industrial Real Estate

To explore opportunities to invest in area industrial properties, connect with the Allentown Economic Development. Manufacturing and industrial projects can be lucrative investments. Even if you only want to explore warehousing and commercial storage options, you could find just the property worth investing in, in Allentown.

Qualified Opportunity Zones

Qualified Opportunity Zones, or QOZs, are newer community development programs intended to encourage long-term investment in rural and low-income communities. There are tax incentives available for investors exploring these options. Additionally, there are more than 300 census tracts in Pennsylvania designated as Qualified Opportunity Zones worth exploring.

Neighborhood Improvement Zones

There is a special taxing district, created initially by Pennsylvania state law, called the Neighborhood Improvement Zone. Tax incentives and financing resources are available for these areas, as well. The Allentown Neighborhood Improvement Zone Development Authority or the ANIZDA oversees the NIZ, and it may be worth connecting as an Allentown real estate investor looking for new opportunities.

Brownfields

There are redevelopment opportunities across the Allentown brownfield sites designated for sustainable development initiatives. The Lehigh Valley’s Land Recycling Initiative, along with the Lehigh Valley Economic Development Corporation, are supporting partners, ready to help you with any development, planning, or financing of sustainable investment projects. If you're looking to invest in sustainable solutions, this may be a connection you want to make.

Finding the Best Allentown, Pennsylvania Investments

When you’re officially serious about moving forward and investing in Allentown, Pennsylvania, real estate, you’ll want to prepare financially and with a team of professionals who can help. You’ll want to make sure you have guidance from your preferred financial advisor, your lender, and your favorite Homeway Real Estate agent. Secure your financing and outline your purchasing strategy to set yourself up for success.

Make sure you’re ready with stats supporting:

• Allentown neighborhood population
• Allentown community development rates
• Allentown appreciation rates
• Allentown property tax rates
• Allentown average income levels
• Allentown price-to-rent ratios 

The Pros & Cons of Real Estate Investing

Generally, investing in real estate is a safer option, presenting fewer risks than other investments like mutual funds or the stock market. But like with any financial and investment strategy, there are pros and cons to consider. While you have advantages pointing to a return on your investment, there will always be some degree of investment risk involved. Here are both perspectives you can review and reference as you make your Allentown purchasing decisions.

Pros Include:

• Tax Benefits
• Appreciation Returns
• Infused Cash Flow
• Diversification Options
• Physical Asset
• Short and Long-Term Flexibility

Cons Include:

• Maintenance Expenses and Property Condition Repairs
• Unexpected Expenses
• Financing and Lending Challenges
• Complex Purchasing Process
• Time-Consuming to Buy, Find, and Manage
• Still Risk of Potential Loss in Value

Existing Rental Properties 

As you begin to look for available properties, it can often be a great idea to start by looking at existing rental properties. Commercial or residential, those Allentown real estate investments already generating income can be ideal first properties for new investors.

For Sale By Owner Properties

Because incredible properties don’t stay on the market for long in Allentown, you might be hard-pressed to act quickly enough to make your purchasing decisions. But don’t discount those listings offered directly by owners. FSBO properties can represent great opportunities for investors. Just make sure you have your real estate agent to represent your interests during negotiation and purchase.

Airbnb and Vacation Rentals

Maybe you’re looking for more seasonal properties, ideal for vacation rentals or Airbnb listings. Allentown is a bustling attraction for thousands of tourists each year. You can browse available vacation listings and actively search for new properties that could easily transition into vacation rentals.

Single-Family

You won’t be hard-pressed to find incredible homes in and around Allentown that would make great investment real estate properties. From move-in ready to fixer-uppers, you’ll have a variety of options from which to choose. And the styles range from eclectic colonials to modern architecture, including these iconic home types:

• Classic Ranch
• Pennsylvania Colonial
• Farmhouses
• Victorian
• New Construction
• Custom Homes

Multi-Family

If you’re looking for an Allentown, Pennsylvania, investment property that will offer a higher return, then you might want to consider buying a multi-family property. These properties are perfect for those who want to live in one unit and rent out the others or for investors who want to generate income from all units. Condos, apartments, and complexes are all available in Allentown, Pennsylvania. Just find the ideal investment for you and make an offer!

Commercial Property

Of course, you’re not limited to residential properties when investing in Allentown real estate. There are plenty of commercial properties available as well, ranging from office space to retail storefronts. And with a thriving economy, there’s no shortage of businesses looking for new locations.

Every Allentown Property Has These Marketable Assets

Regardless of the type of investment property type you decide to buy, there are certain things you’ll always be able to market in Allentown. Developing your marketing plan for renters, commercial tenants, and tourists will be easy when you tap into these incredible Allentown amenities:

• Parks & Recreation
• Convenient Commutes to Other Cities
• Plenty of Retail
• Festivals & Family-Friendly Activities
• Swimming & Water Fun
• Hiking & Biking
• Historical Sites & Museums
• Great Schools & Educational Resources 

Investing in Allentown real estate is a great financial move. Keep these details handy as your guide to available resources, local information, and tips for making your best investment decisions. And don’t forget to contact Homeway Real Estate for a front-row seat for all the available listings in Allentown. Our team of agents can answer any questions for first-time investors and seasoned veterans alike.