Pennsylvania Braces Homebuyer Boom as Iight-Loss Giant Eli Lilly Announces $3.5 Billion Plant

Weight loss drug maker Eli Lilly has unveiled a major plan to build a $3.5 billion manufacturing complex in the heart of Pennsylvania’s Lehigh Valley—a landmark investment that could reshape the region’s housing market.

The Indiana company, which makes weight management treatment Zepbound and diabetes drug Mounjaro, will build a 925,000-square-foot multi-building complex at the Fogelsville Corporate Center in Upper Macungie Township, just outside Allentown, PA.

Construction is scheduled to begin later this year and be completed by 2031, creating 850 jobs at the facility, according to a press release from the Lehigh Valley Economic Development Corp.

The new facility will produce drugs and injectable devices, including the weight loss drug retatrutide which is under development.

When the project was launched last week, Lilly’s CEO David Ricks he said the average annual salary of the company’s employees is about $100,000.

“Those are high-value jobs that change the trajectory of families,” he said.

In addition to permanent jobs, about 2,000 union construction jobs will need to be filled over the next five years, potentially attracting new homebuyers and renters to the area.

How will the new plant affect housing?

Based on an analysis of real estate data by Realtor.com® economists, the Lehigh Valley market has begun to stabilize over the past few years, with slower price growth and slower inventory growth.

The arrival of the Eli Lilly plant could change the dynamics of the market.

“The increase in new investment may revive demand that current supply may struggle to absorb, creating upward pressure on prices unless builders and existing homeowners can bring more innovation to the market,” said Realtor.com’s senior economist. Hannah Jones. “If demand outstrips available supply, homes are likely to sell quickly and see strong price appreciation as buyers compete.”

Allentown, immortal in the area Billy Joel hit, is the third largest city in Pennsylvania. Known as the Queen City of the Lehigh Valley, it has seen its median list price rise more than 12% in two years, reaching $317,812 by the end of 2025.

Nearby Bethlehem, PA, tells a different story. Once home to the dreaded Bethlehem Steel, whose closure in 2003 after years of decline marked the end of the region’s industrial era, the city has seen home prices drop 4.5% from 2023, with the average home valued at around $388,000 last year.

Neighboring Easton, PA, went through an even sharper correction, with its median price dropping 6% from 2023 to $356,629 in 2025.

And while overall inventory in the Allentown-Bethlehem-Easton metro has been growing, up more than 8% year over year and nearly 31% over the past two years, it remains tied in absolute terms.

“For anyone who owns their own home, I can see the prices going up,” Chris Raadowner of Harvey Z. Raad Realtors in Allentown, tells Realtor.com. “We already have a major inventory problem right now in our area … so I’ve seen this affect our housing in an upward direction from there.”

Raad says that if the center were to open today, bringing about 900 workers to the area, the supply of homes for sale might not be enough to keep up with the growing demand.

Since the facility is not expected to be completed until 2031, however, the agent is hopeful that more housing will be built in the meantime, if municipalities agree to relax zoning regulations to allow for multi-family housing.

What the Allentown municipality offers, according to Raad, are more affordable homes and a lower cost of living than larger East Coast areas such as Philadelphia, New York City, and Boston.

At the same time, Raad says, in the past few years, the Lehigh Valley has been building its infrastructure and revitalizing its cities—efforts that have attracted new investment and immigration from New York and New Jersey.

How the Lehigh Valley came to be the Eli Lilly plant

The Lehigh Valley beat out more than 300 other locations across the US for Lilly’s multi-billion dollar project.

The future Fogelsville campus will be the fourth and final regional manufacturing facility announced by the pharmaceutical giant last year to expand production of its weight loss drugs. The first three facilities were located in Houston, Huntsville, AL, and Goochland County, VA.

“Eli Lilly and Company is one of the largest pharmaceutical companies in the world, and they are proud of this nation,” said Pennsylvania Gov. Josh Shapirothe Democrat, said in a project launched last week. “They can choose to invest anywhere in this country and around the world. They chose to plant their flag right here in Pennsylvania … right here in the Lehigh Valley.”

Pennsylvania first fought for a third Eli Lilly plant that ended up in Virginia. But after missing out on that mission, state leaders regrouped and made new efforts.

Lehigh Valley Economic Development Corp. coordinated with state officials and local and regional stakeholders to put together a plan that addresses Eli Lilly’s requirements, including the infrastructure, resources, and personnel needed to complete the facility on time.

The often shovel-ready site benefits from direct access to Interstate Highway 78 and key amenities, is just a few hours’ drive from a large pool of skilled workers, and sits in the middle of a university district that produces future talent for Eli Lilly’s industrial workforce.

To sweeten the deal, Pennsylvania contributed more than $100 million to the project, including $50 million in tax credits and another $50 million in grants.

“Our investment here is more than just building an institution – it’s about building a shared future with the people and communities of the Commonwealth,” Edgardo Hernandezvice president and president of Lilly Manufacturing Operations, the statement said.