Housing strategy plan aims to address Lehigh Valley home affordability, access

As the Lehigh Valley continues to grow and attract new residents and investment, the rising cost of housing has made it increasingly difficult for households to enter or remain in the market.  

To help address the problem, the Lehigh Valley Planning Commission released The Lehigh Valley Housing Supply and Attainability Strategy on Wednesday. 

Among the strategies listed in the report are: 

•  Aligning financial tools, incentives, and capital flows to support housing affordability and production at all income levels; 

• Using zoning and regulatory tools to create conditions that guide contextual development and allow for diverse housing types at a variety of price points; and  

• Increasing coordination across industries and sectors to facilitate additional housing supply. 

The strategy comes from a regional effort to address what the commission described as one of the most pressing challenges facing Lehigh and Northampton counties — ensuring that people at all income levels can find a home in the communities they value. 

In a report documenting the strategy, the LVPC noted that at one time in the Lehigh Valley a typical homebuyer spent around twice their annual income to purchase a home. 

Homeowners are often spending four times their salary, with projections suggesting that ratio could climb even higher if no action is taken. 

According to the commission, Lehigh Valley has seen a significant uptick in population growth.  

A projected 18.6% population increase by the year 2050 will add another 100,000 people, and employment will grow even faster, adding more than 80,000 jobs for a 24.9% increase by 2050.   

An estimated 54,000 housing units are needed regionwide by 2050.  

Reaching that pace will depend on whether projects can be financed and built, whether local regulations allow a range of housing types, whether infrastructure can support growth, and whether public, private and nonprofit partners are working toward shared regional goals the commission said. 

Housing prices have outpaced income growth here as elsewhere across the U.S. 

The LVPC said if the rise in housing costs continues, the average home will cost seven times the median salary by 2050, which it described as an unsustainable outcome.  

The Housing Supply and Attainability Strategy is aimed at charting a new path to increase residential supply and affordability through actions that maintain the existing housing stock and increase unit production over the next 25 years. 

The report noted that housing challenges also vary significantly by community type, with suburban townships currently facing some of the most significant shortages.  

These areas often have large amounts of single-family detached housing and limited housing diversity, which constrains options for smaller households, young professionals, and seniors seeking to downsize.  

LVPC said accommodating growth in a low-density, sprawling pattern risks the loss of farmland and open space, increased traffic congestion, and higher infrastructure costs.  

The region’s three cities of Allentown, Bethlehem, and Easton also experience high housing shortages, compounded by limited land availability, aging housing stock, and higher construction costs. 

Where housing is built is also critical, the commission said.  

The most impactful growth should be directed toward places that are best equipped to support it, particularly communities with existing or efficiently extendable water, sewer and transportation infrastructure and strong access to employment, education and daily needs.  

Strategies must reflect the different conditions of the region’s cities, boroughs, suburbs and rural communities and maintain the balance of growth and preservation. 

The report noted that rural landscapes, farmland, and natural resources define the region’s character and are not suited for large-scale development. 

 Limited, context-sensitive housing may occur in rural villages or through small-scale approaches such as accessory dwellings, but the most impactful strategies should be directed to Housing Growth Areas. 

The Lehigh Valley’s major employment centers, schools, colleges and universities are concentrated largely within and around the region’s cities, boroughs and suburban centers, the report said.  

These places connect residents to jobs, education, training and other opportunities that support economic mobility.  

Providing a range of housing options nearby can shorten the distance between people and opportunity, while directing growth toward places already supported by infrastructure, services and transportation. 

This ensures the region meets its housing needs while maintaining the balance of growth and preservation, the commission said.