Paychecks Exceed Home Values in These Figures, Providing a ‘Welcome Shift’ for Families
Home prices have been rising faster than national wages—but that trend hasn’t played out evenly across the country.
As of the first quarter of 2024, the national median home price rose 8% from $333,438 to $360,000, according to the latest data from ATTOM, a provider of real estate data and real estate analytics.
But the wages actually time has passed home growth in many regions, reports ATTOM.
“It is a welcome change that wages are growing faster than house prices in these markets,” he said Jiayi Xueconomist at Realtor.com®. “Although the price gap remains a challenge, this trend is a powerful tool for potential buyers.”
Between the first quarter of 2025 and the first quarter of 2026, average wages grew faster than household prices in 64% (374) of the 580 states in ATTOM’s analysis.
But the most populated regions where wages time has passed home values were in Los Angeles County; Cook County, IL; Harris County, TX; Maricopa County, AZ; and San Diego County.
“In these five regions, top-ranked universities act as ‘talent magnets’ that fuel high-paying industries such as biotech, aerospace, and finance,” Xu said.
“By providing a continuous program of highly talented students, schools such as UCLA and USC (Los Angeles), the University of Chicago and Northwestern (Cook), Rice and the University of Houston (Harris), ASU (Maricopa), and UC San Diego (San Diego) attract global companies that come together to engage in specialized research and ‘experience’ learning.”
Xu says that this influx of high-paid professionals is not limited to improving the fields of technology and medicine. “And it’s fueling demand for roles across the economy—making these regions some of the strongest and most competitive labor markets in the country,” he adds.
Average weekly earnings increased 6.4%, according to the latest data from the Bureau of Labor Statistics, which runs through the third quarter of 2025.
Higher wages act as an “accelerator” for down payment savings, allowing people to achieve home ownership faster, Xu explained.
“Most importantly, a larger income provides significant ‘debt-to-income’ (DTI) flexibility,” he explains. “Even if mortgage rates don’t drop much, having more room in the budget makes it much easier to qualify for a loan without ‘stretching’ every penny.”
Xu says this extra financial breathing room gives potential buyers more bargaining power, more options to choose from, and more confidence in the purchase decision.
More about the top regions
Below, we take a closer look at the five most populous states where wages exceed home prices.
In Los Angeles County, the median home price in Q1 2026 stood at $879,000—down 1.5% from a year ago—while wages increased 3.0% over the same period.
Jameson Tyler Drewpresident of Anubis Properties in the Los Angeles area, tells Realtor.com, “We have a thriving entertainment industry, as well as strong industries such as aircraft manufacturing and private aerospace companies.”
However, workers still need to spend 66% of their annual wages to buy a median-priced home there. “With home prices reaching $900,000, the mortgage and tax burdens are far from sustainable for a family trying to start life,” Drew said.
But Juliette Hohnen and Douglas Elliman in Los Angeles tells Realtor.com that rising wages relative to home prices should draw more buyers to the market. He adds: “Good-value houses that don’t need work are being sold, and low-value houses are being snapped up.”
In Cook County, the median home price in Q1 2026 reached $305,000, a 2.7% year-over-year increase, however wages outpaced that growth, increasing by 4.6% over the same period—stimulating the housing market.
“It’s probably the best market we’ve seen in downtown Chicago in five or six years,” he said Matt Laricymanaging broker at Americorp Real Estate in Chicago. “There are many people who move on time [COVID-19] the epidemic returns home. Many people are leaving Florida, saying they will take the snow over the storms any time. The suburbs are getting richer, and inventory is getting thinner, so bidding wars are common there. “
In Harris County, the median home price in Q1 2026 came in at $293,750, showing a 3.7% year-over-year decline, as wages went in the opposite direction, growing 3.3%.
“With a strong job market here, I predict that Houston’s housing market will continue to thrive,” Heather Shepherdreal estate agent with Douglas Elliman in Houston, tells Realtor.com.
In San Diego County, the median home price in Q1 2026 was $875,250, down 1.7% from the previous year, while wages gained 3.9% over the same period.
San Diego has a very diverse economy supported by its large military and defense presence, a world-class biotechnology industry, and a thriving technology sector.
In Maricopa County, the median home price in Q1 2026 was $460,000, down 2.9% year-over-year, while wages grew 4.5% over the same period.
“Phoenix has a hot job market,” said a Phoenix real estate agentStacy Millerof Re/Max Fine Properties tells Realtor.com. “Many technology-based companies from California, other states, and even overseas have moved offices and warehouses to Maricopa County. We are home to many technology companies such as Axon, GoDaddy, Honeywell, American Express, Amazon, and Onsemi, to name a few.”
