According to ATTOM’s most recent U.S. Home Affordability Report, properties in nearly every county with enough data to evaluate for Q4 of 2025 were less inexpensive than historical averages. In the last quarter of the year, median-priced single-family houses and condominiums were less affordable than historical norms in 99% (586) of the 594 counties in ATTOM’s survey. The national median home price has been hovering around a record high of $365,000 for the past two quarters.
A bright spot to the country’s affordability problems can be found in the most recent data: although homes were more affordable in Q4 of 2025 than in Q3 in 86% (511) of the 594 counties examined, they were still less affordable in the vast majority of markets.
The average interest rate on a 30-year fixed rate loan decreased from 6.34% at the start of October to 6.15% at the end of the year, demonstrating the sustained decline in mortgage rates.
“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” said Rob Barber, CEO of ATTOM. “Still, modest, quarter-over-quarter affordability improvements in many markets at the end of the year offered some encouragement. Over the past five years, home price growth has nearly doubled wage growth, meaning home buying power in 2026 will depend not only on whether prices level off or decline, but also on mortgage rates and broader economic conditions.”
According to the most recent salary data available from the U.S. Bureau of Labor Statistics, which covers Q2 of 2025, the median sales price of a home has increased by 54% over the previous five years, reaching $365,185 in Q4 while normal salaries have increased by 29%.
According to normal norms, ownership was unaffordable in 74.1% (440) of counties where those significant house expenses accounted for more than 28% of the average resident’s salary.
The most populous counties where typical home expenses exceeded the 28% of wages threshold were:
- Los Angeles County, CA (67.5% of typical wages)
- Maricopa County, AZ (38.1% of wages)
- San Diego, CA (67.4% of wages)
- Orange County, CA (90.3% of wages)
- Miami-Dade County, FL (43.6% of wages)
The largest counties where homeownership expenses would be considered affordable were:
- Cook County, IL (26.4% of typical wages)
- Harris County, Texas (21.9 % of wages)
- Dallas County, Texas (27.6% of wages)
- Philadelphia County, PA (19.2%of wages)
- Cuyahoga County, Ohio (19.6% of wages)
The national median home price increased slightly from $365,000 in each of the preceding two quarters to $365,185 in Q4. Of the 594 counties examined, 69.5% (413) saw an annual increase in average home prices. Counties with at least 100,000 residents and at least 50 sales of single-family homes and condos during Q4 were included in the report.
Of those largest counties, the largest annual drops in home prices were in:
- Honolulu County, Hawaii (down 10%)
- Bexar County, Texas (down 5%)
- Hillsborough County, FL (down 5%)
- Alameda County, CA (down 5%)
- Sacramento County, CA (down 5%)
In Most Counties, Home Price Increase was Lower Than Salary Growth
In 43.3% (257) of the counties examined, the cost of a median-priced home increased faster than average wages.
The most populous counties where home price growth outpaced wage growth were:
- Kings County, NY
- Queens County, NY
- Middlesex County, MA
- Philadelphia County, PA
- Suffolk County, NY
The most populous counties where wages grew at a greater rate than home prices were:
- Los Angeles County, CA
- Cook County, IL
- Harris County, Texas
- Maricopa County, AZ
- San Diego County, CA
In Q4 of 2025, the average monthly cost of property taxes, homeowners insurance, mortgage insurance, and mortgage payments was $2,015. That was a 2% decrease from the prior quarter and a 1% decrease from the prior year.
For a home at the national median price, those significant costs would have taken up 31.4% of the average American’s income in Q4. Home purchase costs in the fourth quarter exceeded 43% of the average county resident’s salaries in 29.5% (175) of the 594 counties examined, a criterion deemed to be extremely expensive. California accounted for 14 of the 25 counties where buying a median-priced property would take up the largest percentage of an average resident’s income, followed by New York and New Jersey with three apiece.
A buyer would have had to earn $86,374 in Q4 to purchase a national median-priced home and keep expenses below the recommended threshold of 28% of annual income. The counties with the highest annual wage requirements to afford a median-priced home were:
- San Mateo County, CA ($373,078 annual wage)
- New York County, NY ($361,784)
- Santa Clara County, CA ($355,001)
- Marin County, CA (327,995)
- San Francisco County, CA ($326,345)
According to ATTOM’s Q4 2025 U.S. Home Affordability Report, with the national median home price hovering at $365,185, median-priced single-family homes and condominiums were less affordable than historical norms in 99% of the counties examined. In comparison to the previous quarter, affordability improved in over 86% of the 594 counties examined, with earnings exceeding housing price rise in over half of them. Even though mortgage rates decreased during the quarter, many people were still unable to afford homeownership because monthly housing expenses accounted for more than 31% of the average salary. The study draws attention to persistent issues with affordability in expensive areas like California and New York.
Note: ATTOM determines affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses—including mortgage payments, mortgage insurance, property taxes and homeowner’s insurance—on a median-priced single-family home and condo, assuming a 20 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income is measured against annualized average weekly wage data from the BLS.
