Department of Numbers

Allentown, Pennsylvania Home Affordability

The data below measures home affordability for the Allentown-Bethlehem-Easton, Pennsylvania metropolitan area using price-to-income and price-to-rent metrics.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Allentown home affordability to other cities.

Allentown, Pennsylvania Home Price-to-Income Ratios

The current price-to-income ratio for Allentown is 2.98 as determined by March 2014 Realtor median sales prices. The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Allentown HPI series. Median household income data for Allentown is from the Census American Community Survey.

Price-to-Income Dollar Ratio: Realtor

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Allentown, Pennsylvania Home Price-to-Income Ratio History

Date Realtor
(Dollar Ratio)
FHFA
(Index Ratio)
March 2014 2.98
December 2013 3.17 115.0
September 2013 3.56 114.8
June 2013 3.65 114.6
March 2013 2.92 114.5
December 2012 3.40 114.6
September 2012 3.40 114.1
June 2012 3.40 113.2
March 2012 3.40 114.7

Allentown, Pennsylvania Home Price-to-Rent Ratios

The current adjusted price-to-rent ratio for Allentown is 15.12 as determined by March 2014 Realtor median sales prices. This ratio is calculated using household size adjusted median contract rent for Allentown. The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Allentown median contract rent data from the Census ACS.

Price-to-Rent Dollar Ratio: Realtor, Realtor Adjusted Rent

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Allentown, Pennsylvania Home Price-to-Rent Ratio History

Date Realtor
(Dollar Ratio)
Realtor Adjusted
(Dollar Ratio)
FHFA
(Index Ratio)
March 2014 17.84 15.12
December 2013 18.98 16.08 94.5
September 2013 21.29 18.05 94.3
June 2013 21.84 18.51 94.2
March 2013 17.47 14.81 94.1
December 2012 20.36 17.26 94.2
September 2012 20.36 17.26 93.8
June 2012 20.36 17.26 93.1
March 2012 20.36 17.26 94.3

Allentown, Pennsylvania Home Rent-to-Mortgage Payment Ratio

The rent-to-mortgage payment ratio uses the adjusted rent for Allentown against a 100% loan-to-value mortgage (30-year fixed) for the median price home using Realtor home sales statistics. It's a lot like a cap rate, but I find it more appealing in ratio form. A ratio of 1.0 means that annual rent is equivalent annual mortgage payments. Values less than 1.0 indicate rents are cheaper and values greater than 1.0 mean mortgage payments are cheaper. Beware, taxes are not considered here. The rent-to-mortgage payment ratio for Allentown was 1.11 in March 2014.

Rent-to-Mortgage Payment Dollar Ratio: Realtor

Allentown, Pennsylvania Home Rent-to-Mortgage Payment Ratio History

Date Realtor Adjusted Rent
(Dollar Ratio)
March 2014 1.11
December 2013 1.03
September 2013 0.91
June 2013 0.94
March 2013 1.24
December 2012 1.10
September 2012 1.08
June 2012 1.05
March 2012 1.02

Allentown, Pennsylvania Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Allentown, Pennsylvania and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Allentown, Pennsylvania Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $281,719
January 2014 $277,423
December 2013 $276,446
November 2013 $283,061
October 2013 $285,432
September 2013 $275,474
August 2013 $276,446
July 2013 $279,394
June 2013 $289,567
May 2013 $308,932
April 2013 $312,408
March 2013 $307,785
February 2013 $309,315

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data.