Pennsylvania Rental Market Trends in 2025
True to its nickname, “The Keystone State,” Pennsylvania is a state that ties together multiple regions of the U.S., including the Great Lakes to the northwest, the Appalachian Mountains to the southwest, and the Mid-Atlantic to the east. It’s the fifth-most populous state in the country, and well-known companies like Comcast, Aramark, PNC Financial Services Group, and Hershey are all headquartered here.
Pennsylvania’s population is growing, albeit slowly, with residents moving from more expensive real estate markets in neighboring states like New Jersey and New York. Though Pennsylvania was once focused on heavy manufacturing, its cities have shown great resilience in transitioning to alternative sectors—for example, Pittsburgh’s switch from steel to technology, education, and healthcare. As a result, cities like Pittsburgh have seen a shift from population loss to slow population growth in recent years.
If you’re looking to expand within Pennsylvania, this post will guide you through evaluating 5 up-and-coming real estate markets there. We’ll share rental market statistics for each city, including inventory growth, rent growth, vacancy rates, cap rates, and property price appreciation. We’ll also highlight economic and demographic trends in each market.
Top 5 Rental Markets in Pennsylvania for 2025
Without further ado, here are 5 Pennsylvania rental markets where our research indicates growth opportunities lie in 2025.
Market #1: Erie, PA
Erie is a city in the northwestern corner of Pennsylvania, roughly halfway between Buffalo, NY and Cleveland, OH. 267,571 residents live in its metro area, which is located alongside Lake Erie.
Historically, Erie was a major manufacturing hub. While heavy industry in the area has declined in recent decades, manufacturing remains a significant source of employment for local residents. Major employers in Erie’s manufacturing sector include Wabtec Corporation, Plastek Industries, Port Erie Plastics, and Eriez Manufacturing.
Other sources of employment for Erie residents include the insurance and healthcare sectors, with top employers including Fortune 500 company Erie Insurance, as well as UPMC Hamot and Saint Vincent Hospital. Education and government are also leading industries in the city. In addition, there are several higher education institutions located near Erie, including Gannon University, Mercyhurst University, and Penn State’s Behrend campus.
The lake effect brings heavy snow to Erie in the winter months. But in the summer, Erie’s waterfront location offers scenic beauty and access to outdoor activities like swimming and kayaking. Presque Isle State Park is a popular destination during the warmer months. Year-round, Erie residents and visitors enjoy local attractions like the Erie Art Museum and Erie Maritime Museum.
Erie ranked in position #8 on Buildium’s list of up-and-coming real estate markets in 2025. This position was largely due to its strong multifamily cap rates, rent growth, and vacancy rates over the last two years. In addition, Erie is affordable to both local residents and investors alike, making this city a good entry point for real estate businesses looking to expand within the region. However, it is important to note that as with other Rust Belt cities, slow or declining growth in population and employment are trends to watch here in Erie.
Erie, Pennsylvania Rental Market Statistics
- Rental Inventory (Q3-’24): 7,128
- Units Added Since Q3-’23: +0
- Asking Rent Growth Since Q3-’23: 5.3%
- Asking Rent (Q3-’24): $1,161
- Effective Rent (Q3-’24): $1,157
- Multifamily Vacancy Rate (Q3-’24): 3.7%
- Multifamily Cap Rate (Q3-’24): 8.8%
Source: National Association of Realtors
Erie, Pennsylvania Housing Market Statistics
- Median Home Price (Q3-’24): $192,400
- Home Price Appreciation Since Q3-’23: 10.4%
Source: National Association of Realtors
Erie, Pennsylvania Economic Statistics
- Population Growth (2023): 0.0%
- GDP Growth (2023): 7.2%
- Job Growth (Q3-’24): 1.1%
Source: National Association of Realtors
Lists That Mention Erie, Pennsylvania
- Emerging Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #57
- Emerging Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #28
- Emerging Housing Markets Index – Fall 2024 (WSJ/Realtor.com): #14
- Best Real Estate Markets – Small Cities (WalletHub): #109
Market #2: Harrisburg, PA
On the banks of the Susquehanna River, the Harrisburg metro area has 606,055 residents. This capital city is located in south-central Pennsylvania, about two hours west of Philadelphia, and three hours east of Pittsburgh.
Harrisburg experienced a significant decrease in population in the latter half of the twentieth century due to the decline of heavy manufacturing and the outflow of residents to suburban communities. However, the city’s population has since stabilized, with the state and federal government employing tens of thousands of Harrisburg-area residents. Other top employers in Harrisburg include Giant Food Stores, Penn State Hershey Medical Center, Hershey Entertainment and Resorts, and the Hershey Company (with tourist destination Hersheypark located less than half an hour away).
Destinations like the Pennsylvania State Capitol, the National Civil War Museum, and the State Museum of Pennsylvania also attract residents and visitors interested in history to Harrisburg. Those interested in cultural attractions can spend time at the Whitaker Center for Science and the Arts, Susquehanna Art Museum, and Fort Hunter Mansion and Park. Harrisburg also has a number of festivals each year that attract tourists to the area, including the Pennsylvania Farm Show and the Great American Outdoor Show.
There are also a handful of higher education institutions located here, including Penn State Harrisburg, Temple University Harrisburg, Harrisburg University of Science and Technology, and Harrisburg Area Community College.
Harrisburg ranked in position #25 on Buildium’s list of up-and-coming real estate markets in 2025 due to its moderately strong multifamily vacancy rates, cap rates, and rent growth over the past two years. Though home price appreciation was relatively strong over the last year, properties in Harrisburg remain relatively affordable, making this Pennsylvania rental market another metro worth considering for investors looking to expand into the region.
Harrisburg, Pennsylvania Rental Market Statistics
- Rental Inventory (Q3-’24): 32,815
- Units Added Since Q3-’23: 322
- Asking Rent Growth Since Q3-’23: 3.1%
- Asking Rent (Q3-’24): $1,359
- Effective Rent (Q3-’24): $1,350
- Multifamily Vacancy Rate (Q3-’24): 6.2%
- Multifamily Cap Rate (Q3-’24): 7.1%
Source: National Association of Realtors
Harrisburg, Pennsylvania Housing Market Statistics
- Median Home Price (Q3-’24): $283,100
- Home Price Appreciation Since Q3-’23: 5.6%
Source: National Association of Realtors
Harrisburg, Pennsylvania Economic Statistics
- Population Growth (2023): 0.4%
- GDP Growth (2023): 6.1%
- Job Growth (Q3-’24): 1.8%
Source: National Association of Realtors
Lists That Mention Harrisburg, Pennsylvania
- Emerging Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #53
- Emerging Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #39
- Best Places to Live (U.S. News): #109
- Market #3: Reading, PA
Market #3: Reading, PA
432,821 residents call the Reading metro area home, which is located in southeastern Pennsylvania, about an hour and a half from Philadelphia.
The Reading Railroad once played an important role in moving coal from Pennsylvania’s coal region to major markets up and down the East Coast. However, as the railroad and other heavy industries experienced a decline in the second half of the twentieth century, an economic downturn caused a portion of Reading’s population to leave the city, with many flocking to the area’s suburbs.
That population loss has since been reversed as the city’s economy has stabilized. Today, top employers in Reading include East Penn Manufacturing Company, Reading Hospital, Amazon Services, Carpenter Technology Corporation, Penske Truck Leasing Company, Walmart, and the Reading School District. There are also several higher education institutions located in the city of Reading, including Albright College, Alvernia University, and Reading Area Community College.
Reading residents and visitors appreciate cultural attractions like the Reading Public Museum, the GoggleWorks Center for the Arts, the Santander Performing Arts Center, and the Mid-Atlantic Air Museum. Another unique destination is the Reading Pagoda, a Japanese-style structure built in 1908 that offers panoramic views of the city and its surroundings. Reading also boasts natural beauty thanks to the Schuylkill River, Mount Penn, and Antietam Lake Park, and cyclists enjoy the metro area’s 125 miles of trails across five preserves.
Reading ranked in position #36 on Buildium’s list of up-and-coming real estate markets in 2025 due to its strong multifamily cap rates, vacancy rates, and rent growth, as well as its home price appreciation. Investors looking for an opportunity to invest in the area will find relatively affordable property prices here. However, it’s worth noting that Reading has elevated poverty rates in comparison with the rest of Pennsylvania, and has had a higher-than-average unemployment rate in the past as well, though it now stands at 4.3%. The local government is actively working on revitalizing the city, attracting new businesses to the area, and improving residents’ quality of life.
Reading, Pennsylvania Rental Market Statistics
- Rental Inventory (Q3-’24): 10,836
- Units Added Since Q3-’23: +78
- Asking Rent Growth Since Q3-’23: 4.3%
- Asking Rent (Q3-’24): $1,427
- Effective Rent (Q3-’24): $1,420
- Multifamily Vacancy Rate (Q3-’24): 3.8%
- Multifamily Cap Rate (Q3-’24): 7.6%
Source: National Association of Realtors
Reading, Pennsylvania Housing Market Statistics
- Median Home Price (Q3-’24): $289,500
- Home Price Appreciation Since Q3-’23: 6.7%
Source: National Association of Realtors
Reading, Pennsylvania Economic Statistics
- Population Growth (2023): 0.6%
- GDP Growth (2023): 7.7%
- Job Growth (Q3-’24): 1.0%
Source: National Association of Realtors
Lists That Mention Reading, Pennsylvania
- Emerging Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #20
- Emerging Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #30
- Best Places to Live (U.S. News): #142
Market #4: Allentown, PA
Allentown is the third-largest city in Pennsylvania, with 873,555 residents living in its metro area. It’s located in the eastern part of the state along the Lehigh River. Several major highways are close by, making Allentown an ideal place to live for residents who favor easy access to the rest of the East Coast, as well as logistics and distribution companies like Amazon, FedEx, and UPS.
As with the other Pennsylvania rental markets on our list, Allentown’s population stagnated in the back half of the twentieth century due to the decline of manufacturing and the movement of residents to the suburbs. However, since 2010, the population has increased to an all-time high.
Why are people moving to Allentown? First and foremost, it offers a relatively affordable cost of living while being an hour and a half from Philadelphia and two hours from New York City. And second, the city and its economy have undergone significant revitalization in recent years, with job opportunities increasing in the healthcare sector as well as the aforementioned logistics and distribution sector.
Top employers in Allentown include Lehigh Valley Health Network, St. Luke’s University Health Network, and Amazon Services. There are also still some job opportunities in the manufacturing sector, with companies like Mack Trucks, Air Products, B. Braun Medical, and Lutron Electrics located here. Three higher education institutions—Muhlenberg College, Cedar Crest College, and a satellite campus of Lehigh Carbon Community College—are also located in Allentown.
The city also has a number of cultural attractions that residents and tourists can appreciate, including the Allentown Art Museum, the Da Vinci Science Center, the Lehigh Valley Heritage Museum, the Liberty Bell Museum, and the Allentown Rose Gardens, among others. Sports fans can catch a baseball game at Coca-Cola Park, or a hockey game at PPL Center, which also hosts shows and concerts. Visitors are also drawn to the Great Allentown Fair, one of the oldest fairs in the U.S., as well as Dorney Park & Wildwater Kingdom, which is among the country’s largest amusement parks.
Allentown ranked fortieth on Buildium’s list of up-and-coming real estate markets in 2025 due to its moderately strong multifamily cap rates, vacancy rates, and rent growth, as well as its home price appreciation over the last two years. It is worth noting that though the cost of living is relatively affordable in Allentown, the metro has a slightly elevated poverty rate in comparison with other Pennsylvania cities. There are also rental market regulations that rental owners should be aware of here: All rental properties have to be registered with the city, which requires an annual inspection to ensure that the property meets Allentown’s safety and maintenance standards.
Overall, though, investors and property managers looking for expansion opportunities in one of Pennsylvania’s most populous yet under-the-radar metro areas may find them here in Allentown.
Allentown, Pennsylvania Rental Market Statistics
- Rental Inventory (Q3-’24): 36,230
- Units Added Since Q3-’23: +60
- Asking Rent Growth Since Q3-’23: 3.5%
- Asking Rent (Q3-’24): $1,677
- Effective Rent (Q3-’24): $1,670
- Multifamily Vacancy Rate (Q3-’24): 3.6%
- Multifamily Cap Rate (Q3-’24): 7.1%
Source: National Association of Realtors
Allentown, Pennsylvania Housing Market Statistics
- Median Home Price (Q3-’24): $356,300
- Home Price Appreciation Since Q3-’23: 5.4%
Source: National Association of Realtors
Allentown, Pennsylvania Economic Statistics
- Population Growth (2023): 0.3%
- GDP Growth (2023): 8.8%
- Job Growth (Q3-’24): 2.4%
Source: National Association of Realtors
Lists That Mention Allentown, Pennsylvania
- Emerging Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #59
- Emerging Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #35
- Best Real Estate Markets – Small Cities (WalletHub): #48
- Best Places to Live (U.S. News): #128
Market #5: Pittsburgh, PA
With 2,422,725 residents living in its metro area, Pittsburgh is the second-most populous city in Pennsylvania, and it represents the largest city in the Appalachian and Ohio Valley regions. Pittsburgh is located in western Pennsylvania, where the Allegheny and Monongahela Rivers come together to form the Ohio River.
Known as the “Steel City,” Pittsburgh’s economy was once primarily focused on heavy manufacturing. However, as with the other Pennsylvania real estate markets on our list, Pittsburgh underwent a challenging transition in the second half of the twentieth century, losing around half of its population as manufacturing jobs left the area and residents moved to the suburbs.
Today, Pittsburgh’s economy has been significantly revitalized, and is now focused on healthcare, education, technology, and clean energy production. Top employers in the area include the UPMC Health System, Highmark Health, the University of Pittsburgh, and the federal and state governments. A number of other higher education institutions are also located here, including Carnegie Mellon University, Duquesne University, and Point Park University.
Residents of Pittsburgh are drawn to the area’s relatively low cost of living, as well as its rich cultural scene. There are many attractions that local residents and tourists enjoy, including the Carnegie Museum of Art, the Andy Warhol Museum, Heinz Hall for the Performing Arts, the Carnegie Museum of Natural History, and the Pittsburgh Zoo & Aquarium. The city’s multiple rivers and parks, such as Point State Park and Schenley Park, also provide opportunities for outdoor recreation.
Pittsburgh ranked forty-third on Buildium’s list of up-and-coming real estate markets in 2025 based on its strong cap rates and moderately strong multifamily vacancy rates and asking rent growth over the last two years. It’s worth noting that though the city has struggled with population and employment growth in the past, it’s now experiencing slow but positive growth thanks to its resilience and investment in non-manufacturing sectors of the economy. In addition, Pittsburgh offers residents a relatively low cost of living compared to the rest of the East Coast, and offers investors a moderately affordable opportunity to own properties in a bustling city.
Pittsburgh, Pennsylvania Rental Market Statistics
- Rental Inventory (Q3-’24): 105,527
- Units Added Since Q3-’23: +247
- Asking Rent Growth Since Q3-’23: 2.4%
- Asking Rent (Q3-’24): $1,348
- Effective Rent (Q3-’24): $1,339
- Multifamily Vacancy Rate (Q3-’24): 5.6%
- Multifamily Cap Rate (Q3-’24): 8.1%
Source: National Association of Realtors
Pittsburgh, Pennsylvania Housing Market Statistics
- Median Home Price (Q3-’24): $239,400
- Home Price Appreciation Since Q3-’23: 3.6%
Source: National Association of Realtors
Pittsburgh, Pennsylvania Economic Statistics
- Population Growth (2023): 3.1%
- GDP Growth (2023): 5.9%
- Job Growth (Q3-’24): 1.6%
Source: National Association of Realtors
Lists That Mention Pittsburgh, Pennsylvania
- Emerging Housing Markets Index – Winter 2024 (WSJ/Realtor.com): #174
- Emerging Housing Markets Index – Spring 2024 (WSJ/Realtor.com): #95
- Overall Real Estate Prospects (PwC/ULI): #45
- Best Real Estate Markets – Large Cities (WalletHub): #45
- Best Places to Live (U.S. News): #36
How Do We Identify the Best Rental Markets in Pennsylvania?
We use the following sources to help us ascertain the best rental markets in the U.S. across five different categories.
Industry Indicators
Measures of opportunity for rental property investors and property managers:
- Markets with the best overall real estate investment prospects, as measured by PwC and the Urban Land Institute
- Housing markets with emerging investment opportunities, as measured by the Wall Street Journal and Realtor.com
- Markets with a greater number of renters relative to homeowners, as measured by the National Association of Realtors
- Markets with a high rate of renter household formation, as measured by the National Association of Realtors
Housing Indicators
Measures of property prices and rent growth:
- Markets with the highest growth in asking rents, as measured by the National Association of Realtors
- Markets with the lowest rental property vacancy rate, as measured by the National Association of Realtors
- Markets with the highest rental property cap rates, as measured by the National Association of Realtors
- Markets with the most home price appreciation, as measured by the National Association of Realtors
- Markets with affordable monthly mortgage payments relative to income, as measured by the National Association of Realtors
Economic and Job Market Indicators
Measures of employment growth:
- Markets with the lowest unemployment rates, as measured by the National Association of Realtors
- Markets with the most employment growth, as measured by the National Association of Realtors
- Markets with the most GDP growth, as measured by the National Association of Realtors
- States with the most economic activity, as measured by the National Association of Realtors
Demographic Indicators
Measures of population growth:
- Markets with the greatest population growth, as measured by the National Association of Realtors
- The fastest-growing real estate markets, as measured by U.S. News
- The best places to live, based on analyses of quality of life and desirability, as measured by U.S. News
Climate Indicators
Measures of climate vulnerability:
- Markets with the lowest risk of natural disasters and extreme conditions, as measured by the Federal Emergency Management Agency
60 Up-and-Coming Real Estate Markets in 2025
In Buildium’s annual Up-and-Coming Real Estate Markets list, we analyzed 175 metro areas across the U.S. to determine which cities show promise for rental investors and property managers in the year ahead. Wondering where else can rental investors and property managers find more growth opportunities in 2025? View the full list of emerging markets we’ve identified across the country.
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