Eli Lilly to build $3.5B plant in Pennsylvania's Lehigh Valley

New pharmaceutical manufacturing complex could reshape the region's housing market

Published on Feb. 10, 2026

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Drugmaker Eli Lilly has announced plans to build a $3.5 billion, 925,000-square-foot manufacturing complex in Pennsylvania's Lehigh Valley, creating 850 jobs with an average annual salary of $100,000. Real estate experts predict the investment could drastically reshape the region's housing market, with home prices expected to rise significantly due to increased demand.

Why it matters

The Lehigh Valley region has already seen rising home prices, with Allentown's median list price up over 12% in two years. However, nearby Bethlehem and Easton have seen home prices drop in recent years. Lilly's new plant is expected to attract new residents and drive up housing demand, potentially leading to a homebuyer boom in the area.

The details

Lilly selected the Lehigh Valley site from over 300 applications, citing the region's proximity to STEM universities, technical manufacturing economy, and existing infrastructure. Construction on the 925,000-square-foot facility is scheduled to begin later this year and be completed by 2031. The plant will produce injectable drugs and devices, including Lilly's weight-loss drug retatrutide.

  • Lilly announced the $3.5 billion investment in February 2026.
  • Construction on the new facility is scheduled to begin later in 2026.
  • The plant is expected to be completed by 2031.

The players

Eli Lilly

An Indiana-based pharmaceutical company that makes weight-loss and diabetes medications.

Edgardo Hernandez

Executive vice president and president of Lilly Manufacturing Operations.

Josh Shapiro

The governor of Pennsylvania.

Chris Raad

Owner of Harvey Z. Raad Realtors in Allentown, Pennsylvania.

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What they’re saying

“For anybody who's owning their own home, I can see values rising. We already have quite an inventory crunch right now in our area ... so I could see this really affecting our housing in an upward fashion from there.”

— Chris Raad, Owner, Harvey Z. Raad Realtors (Realtor.com)

“Our investment here is more than just building a facility— it's about building a shared future with the people and communities of the Commonwealth. Through meaningful partnerships in Pennsylvania, we're committed to fostering collaboration, driving innovation, advancing environmental stewardship, and creating lasting positive impact that extends far beyond our facility walls.”

— Edgardo Hernandez, Executive Vice President and President of Lilly Manufacturing Operations (Lilly press release)

“Lilly's commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry.”

— Josh Shapiro, Governor of Pennsylvania (Lilly press release)

What’s next

Construction on the new Lilly manufacturing complex is scheduled to begin later this year, with the facility expected to be completed by 2031.

The takeaway

Lilly's $3.5 billion investment in the Lehigh Valley is poised to reshape the region's housing market, potentially leading to a homebuyer boom as the new plant attracts hundreds of high-paying jobs and new residents to the area. This highlights the significant economic impact that major corporate investments can have on local communities.