Side-by-side comparison of home prices, mortgage payments, and housing costs between Allentown and Reading, Pennsylvania. Using Pennsylvania's 1.36% property tax rate and $1,400/year insurance. Updated for 2026.
Reading is significantly more affordable than Allentown, with homes priced 45% lower on average. That translates to $792/month in savings on your total housing payment. For budget-conscious buyers in Pennsylvania, Reading offers a much more accessible path to homeownership.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Pennsylvania's 1.36% property tax rate.
Buying in Reading saves you approximately $792/month ($9,504/year) compared to Allentown, based on median home prices with identical loan terms.
Reading is the better choice for first-time buyers, with a median price of $135K versus $245K in Allentown. That's $110K less to save for a down payment. You'd need roughly $5K for an FHA 3.5% down payment in Reading, compared to $9K in Allentown. Pennsylvania offers the PHFA Keystone Advantage program (Up to $6,000 DPA) which applies in both cities.
Reading has the better price-to-rent ratio at 11.0x versus 16.0x in Allentown. A lower ratio generally signals better rental income relative to purchase price. Average rent in Reading is $1,020/month on a $135K median home, making it a stronger candidate for buy-and-rent investors.
Allentown (pop. 126,092) offers more amenities, schools, and services typical of a larger city, while Reading (pop. 95,112) may offer a quieter, more community-oriented lifestyle. Families on a budget may prefer Reading, where lower housing costs free up more income for childcare, education, and savings.