These are the best cities in Pennsylvania for real estate investment in 2025.
Learn where to buy the most profitable investment properties, short term rentals and flip homes.
Based on moving trends, population growth and local market trends.
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Here are best cities in Pennsylvania to invest in real estate:
Pittsburgh
Pittsburgh is recognized as one of the most affordable and desirable markets in the Northeast. Offering a strong local economy and job market for potential real estate investors.
The city’s affordability, coupled with its economic stability, has attracted investors seeking to capitalize on the potential for long-term appreciation and profitability in the city’s real estate market here.
Pittsburgh is known for its rich industrial history and has transformed into a center for technology, education, and healthcare. The city’s evolving job market has positively impacted its real estate sector. According to Zillow, the median home value in Pittsburgh has been on a consistent rise, making it a promising area for long-term investments.
1 bedroom rent: $1,375 (-5% YoY)
Median days on the market: 57
Median home price: $217,950 (+1.4%)
Homes sold above list: 22.5%
Rental market data | Housing market data
Philadelphia
Philadelphia presents a seller’s market with increasing median home prices and sustainable rent growth. Indicating that profitable opportunities are available for real estate investors. The high demand for the city’s housing market further solidifies its position as a top city for investment.
Philadelphia’s thriving real estate market is complemented by the city’s increasing home prices and rental demand. As a result, investors are drawn to the city’s dynamic real estate landscape, recognizing the potential for substantial returns and long-term growth in their investment portfolios.
Blending historical significance with modern economic growth, Philadelphia becomes an ideal city in Pennsylvania for real estate investing. The city’s diverse economy, with sectors like finance, healthcare, and education, has fueled its real estate market.
Zillow reports a significant increase in median home values over the past year, with an average price of $250,000. Philadelphia’s ongoing urban development projects and cultural vibrancy also make it an attractive option for investors seeking capital gains and strong rental markets.
1 bedroom rent: $1,710 (-8% YoY)
Median days on the market: 52
Median home price: $235,000 (-2.9%)
Homes sold above list: 22%
Rental market data | Housing market data
Allentown
Allentown has seen significant growth in the rental market and an increase in median rent prices, making it an appealing city for real estate investors in Pennsylvania. The ongoing revitalization efforts in the downtown area further enhance its investment potential.
For example, Allentown’s downtown revitalization efforts have led to increased property values and rental demand, making it an ideal location for real estate investment. The city’s strategic initiatives and infrastructural enhancements have not only boosted the appeal of the area but have also attracted a surge of interest from real estate investors seeking promising opportunities for long-term returns.
Its growing sectors in manufacturing, healthcare, and retail have boosted demand for real estate. For example, publicly available Zillow data shows a steady increase in home values, averaging around $200,000. The city’s rental market is vibrant, driven by an increasing population and redevelopment efforts.
1 bedroom rent: $1,837 (+5% YoY)
Median days on the market: 8
Median home price: $235,000 (+10.1%)
Homes sold above list: 54.5%
Rental market data | Housing market data
Erie
Erie, known for its waterfront charm and industrial heritage, offers unique opportunities. The city has seen a 5% increase in median home values, with current prices averaging near $175,000. Erie’s proximity to major cities like Pittsburgh and Cleveland adds to its appeal for both residential and rental real estate investments.
1 bedroom rent: $1,192 (+0% YoY)
Median days on the market: 14
Median home price: $171,500 (+6.5%)
Homes sold above list: 23.1%
Rental market data | Housing market data
West Chester
West Chester’s high quality of life and proximity to major urban cities like Philadelphia make it an attractive city fueled by local demand. Its strong local economy and quality school districts attract families and young professionals. Contributing to a steady demand for housing.
1 bedroom rent: $1,772 (-5% YoY)
Median days on the market: 21
Median home price: $530,000 (-7.8%)
Homes sold above list: 21.1%
Rental market data | Housing market data
State College
State College has been identified as a promising city for real estate buyers in 2024. Offering real estate at an affordable cost and potential for steady population growth.
State College’s have garnered attention from investors seeking promising opportunities in the Pennsylvania real estate market. The city’s favorable investment climate, coupled with its promising outlook for future appreciation, makes it an attractive option for those looking to diversify their real estate portfolios.
1 bedroom rent: $1,222 (-1% YoY)
Median days on the market: 25
Median home price: $300,000 (+18.8%)
Homes sold above list: 0%
Rental market data | Housing market data
Bethlehem
Bethlehem has experienced major revitalization efforts and offers real estate incentives for investors, making it an attractive city for real estate investment in Pennsylvania.
An example of this is Bethlehem’s tax incentives and development programs, which have encouraged real estate investment and revitalization projects.
The city’s proactive approach to fostering a conducive environment for real estate investment has resulted in a surge of interest from investors and private companies. Positioning Bethlehem as a prime location for those seeking profitable opportunities in the Pennsylvania real estate market.
1 bedroom rent: $1,705 (+1% YoY)
Median days on the market: 15
Median home price: $285,000 (+12%)
Homes sold above list: 49.3%
Rental market data | Housing market data
Data updated December 28, 2024
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Is Pennsylvania a good place to invest in real estate?
Real estate investors are attracted to the Pennsylvania real estate market. Pennsylvania is considered the 18th cheapest state for buying a house, making it easier for investors to invest in. This is a significant draw for real estate investors looking for lucrative opportunities.
High demand for single-family suburban homes has contributed to Pennsylvania’s red-hot housing market. This trend has not only helped property values appreciate but has also paved the way for the lucrative rental property investment market.
Pennsylvania is truly a state known for its rich historical background and diverse economy. It offers a perfect mix of urban and rural environments, with a range of investment opportunities in both residential and commercial properties. Making it a popular choice for real estate investors.
Pennsylvania’s rental property market is booming with real estate investment from neighboring states. This is a significant draw for new real estate investors looking for profitable opportunities.
Related to Where to Invest in Pennsylvania
Now that you’ve learned where to invest in real estate in Ohio, lets explore more options:
Real Estate Investment Strategies in Pennsylvania
Investors have many types of real estate investments they can choose from. Here are the two best types:
Fix and Flip Investment Strategy
Success in the fix and flip market depends on local market trends, quality of renovations, and choosing the best city to invest in Pennsylvania for fix and flips. Here’s a summary:
Pittsburgh
Pittsburgh is a desirable location for fix and flipping due to its strong economy, population growth, and available home inventory.
Philadelphia
Philadelphia has rapid property turnover and short listing durations. Making it one of the best cities in Pennsylvania for real estate investment.
Allentown
Allentown’s ongoing urban revitalization and affordable property prices make it an attractive city for investors.
Erie
Erie offers a scenic lakefront with lots of affordable housing options and consistent tourism keeping demand high.
West Chester
Strong local economy and quality school districts attract families and young professionals, making it a great choice for flipping.
Rental Property Investment Strategy
When deciding on where to buy a long-term rental property in Pennsylvania, you should consider proximity to major employers, universities, public transportation and percentage of government employees which receive a stable paycheck. Use our DSCR loan calculator to help you decide where to buy an investment property.
Philadelphia
Philadelphia’s has a strong seller’s market benefiting investors in the long term from capital appreciation. It also has a strong job market and many universities.
Allentown
Allentown’s is located very close to major cities like Philadelphia and New York. It has a growing rental market and consistently increasing rent prices. The renovated downtown will continue to build future demand.
Pittsburgh
Pittsburgh has a strong job market in technology and healthcare, diverse economy and many popular universities. Contributing to high demand for renting.
Bethlehem
Since 2020, the city has experienced significant home value growth and has left many homebuyers behind. This keeps boosting rental need growth.
West Chester
Higher rent price averages contribute to higher profits for those investors who are patient to look for good deals.
Erie
Erie, with its unique waterfront location and industrial roots, offers attractive rental opportunities, particularly in areas near the waterfront and downtown.
Harrisburg
Harrisburg is known for stability due to its large government employment sector and a growing healthcare sector. This provide consistent and reliable tenants.