Housing Remains Less Affordable Than Historical Average in 99% of US Regions Analyzed
Despite recent improvements in home equity prices and softening home prices in parts of the country, home affordability remains well below historical averages in nearly every region of the US.
In 99% of the 594 counties reviewed, median-priced single-family homes remained less expensive than historical averages in the final quarter of last year, according to a report released Thursday by housing data firm ATTOM.
The results, which include counties with at least 100,000 residents and 50 or more home sales per quarter, are similar to the previous two areas, with median home prices hovering around a record high of $365,000, as measured by ATTOM.
Still, the data showed signs of gradual improvement, with affordability improving every quarter in more than four out of five states featured in the report.
“Most Americans are priced out of buying a home in 2025, and affordability remains worse than historical trends in many markets,” said ATTOM’s CEO. Rob Barber. “However, quarter-on-quarter improvement in liquidity in most markets at the end of the year provided some encouragement.”
Since 2020, home prices have risen 54%, far outpacing the 29% gain in average wages, according to an ATTOM analysis of Labor Department data.
“Over the past five years, home price growth has nearly doubled wage growth, meaning that the ability to buy homes in 2026 will depend not only on whether prices are flat or falling, but also on mortgage rates and broader economic conditions,” said Barber.
The new report measures affordability by calculating the share of income needed to cover the major costs of homeownership in a median-priced home—including mortgage payments, mortgage insurance, property taxes and homeowner’s insurance.
In 74% of the states reviewed, those major home expenses consumed more than 28% of the residents’ average income, making ownership out of reach by standard guidelines.
Nationally, household spending accounted for 31.4% of median income in the fourth quarter, down slightly from 33.3% in the third quarter.
The least expensive county for home buyers in the fourth quarter was Kings County, NY, better known as Brooklyn, where housing costs reached 103% of median wages. California’s Marin (97%) and Santa Cruz (94%) counties follow closely behind.
Meanwhile, the least expensive county featured in the report was Cambria, PA, a very rural county west of Altoona where household costs required 13% of local income.
The most populous counties where average housing costs exceeded the 28% income threshold were Los Angeles County (67.5% of average incomes); Maricopa County, AZ (38.1% of wages); San Diego (67.4% of wages); Orange County, CA (90.3% of wages); and Miami-Dade County (43.6% of wages).
The most populous counties where the cost of home ownership would be considered affordable were Cook County, IL (26%); Harris County, TX (22%); and Dallas County, TX (28%).
Median home prices rose in more than two-thirds of the counties
National median home prices as measured by ATTOM rose slightly to $365,185 in the fourth quarter, up slightly from $365,000 in each of the previous two quarters.
Average home prices increased annually in 69.5% of the 594 counties analyzed.
Among the 47 counties in the report with more than 1 million residents, those with the largest annual increases in median home sales prices were Suffolk County, NY (+8%); Fulton County, GA (+7%); Allegheny County, PA (+6%).
Of those larger counties, the largest annual declines in home values were in Honolulu County, HI (-10%); Bexar County, TX (-5%); Hillsborough County, FL (-5%); Alameda County, CA (-5%); and Sacramento County, CA (-5%).
