U.S. homeownership remained out of reach for most Americans at the end of 2025, with affordability near historic lows across almost every major housing market, according to a new report from real estate data firm ATTOM.
In 99% of U.S. counties analyzed–586 out of 594–median-priced single-family homes and condominiums were less affordable in the fourth quarter than their historical averages. The pattern has now persisted for three consecutive quarters as home prices hover near record highs and wages struggle to keep pace.
The national median home price edged up to $365,185 in the fourth quarter, essentially unchanged from the prior two quarters and near the highest level on record. Over the past five years, prices have surged 54%, nearly double the 29% gain in typical wages over the same period, according to wage data from the U.S. Bureau of Labor Statistics.
Despite the bleak long-term picture, the latest data offered a modest sign of relief. Affordability improved quarter-over-quarter in 86% of counties analyzed, helped in part by falling mortgage rates. The average interest rate on a 30-year fixed mortgage declined from 6.34% at the start of October to 6.15% by year-end.
“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” said Rob Barber, chief executive officer of ATTOM. “Still, modest improvements at the end of the year offered some encouragement. Home buying power in 2026 will depend not only on price trends, but also on mortgage rates and broader economic conditions.”
Ownership Costs Exceed Standard Affordability Benchmarks
ATTOM measures affordability by calculating the income required to cover major homeownership costs–including mortgage payments, mortgage insurance, property taxes and homeowners insurance–on a median-priced home, assuming a 20% down payment and a maximum front-end debt-to-income ratio of 28%.
By that standard, homeownership was unaffordable in 74.1% of counties analyzed. In those markets, ownership costs consumed more than 28% of typical local wages.
Among the nation’s most populous counties, affordability pressures were most acute in Orange County, California, where ownership costs consumed 90.3% of typical wages, followed by Los Angeles County (67.5%), San Diego County (67.4%), Miami-Dade County, Florida (43.6%), and Maricopa County, Arizona (38.1%).
By contrast, ownership costs remained within affordability guidelines in several large urban counties, including Harris County, Texas (21.9% of wages), Philadelphia County, Pennsylvania (19.2%), Cuyahoga County, Ohio (19.6%), Cook County, Illinois (26.4%), and Dallas County, Texas (27.6%).
Prices Rose in Most Markets, but Not All
Median home prices increased year-over-year in nearly 70% of counties in the fourth quarter. Among counties with populations exceeding one million, the largest annual price gains were recorded in Suffolk County, New York (up 8%), Fulton County, Georgia (up 7%), Allegheny County, Pennsylvania (up 6%), Bronx County, New York (up 6%), and Nassau County, New York (up 6%).
At the same time, several major markets saw notable price declines, including Honolulu County, Hawaii (down 10%), Bexar County, Texas (down 5%), Hillsborough County, Florida (down 5%), Alameda County, California (down 5%), and Sacramento County, California (down 5%).
In 43.3% of counties analyzed, home price growth outpaced wage growth, further eroding affordability. The gap was most pronounced in populous counties such as Kings County and Queens County in New York, Middlesex County, Massachusetts, Philadelphia County, Pennsylvania, and Suffolk County, New York.
Conversely, wage growth exceeded home price growth in markets including Los Angeles County, Cook County, Harris County, Maricopa County, and San Diego County.
Nearly One-Third of Counties Deemed Seriously Unaffordable
The typical monthly cost of owning a median-priced home–including mortgage payments, insurance, and taxes–was $2,015 in the fourth quarter, down 2% from the prior quarter and 1% from a year earlier. Even with that decline, those expenses consumed 31.4% of the typical American’s wages nationwide.
In nearly 30% of counties, ownership costs exceeded 43% of local wages, a level considered seriously unaffordable. California dominated the list of least affordable markets, accounting for 14 of the 25 counties with the highest cost burdens, followed by New York and New Jersey.
The least affordable counties nationwide were Kings County, New York, where ownership costs exceeded 103% of typical wages, followed by Marin County, California (97.3%), Santa Cruz County, California (94.4%), Orange County, California (90.3%), and Monterey County, California (90.3%).
Among counties with populations over one million, the least affordable markets were Kings County, Orange County, Queens County, New York (77.1%), Nassau County, New York (74%), and Los Angeles County.
Income Gap Widens
To purchase a national median-priced home while keeping costs below the recommended affordability threshold, a buyer would have needed an annual income of $86,374 in the fourth quarter.
The highest income requirements were concentrated in coastal California and New York, led by San Mateo County, California ($373,078), New York County ($361,784), Santa Clara County, California ($355,001), Marin County, California ($327,995), and San Francisco County ($326,345).
Affordability Worse Than Historical Norms Nearly Everywhere
Relative to historical benchmarks, affordability deteriorated in virtually every market. The counties with the lowest affordability index scores–indicating the steepest decline from historical norms–included Lackawanna County, Pennsylvania; Jackson County, Mississippi; Berrien County, Michigan; St. Lucie County, Florida; and Niagara County, New York.
The findings underscore how deeply entrenched the affordability crisis has become, even as mortgage rates ease and price growth shows signs of cooling in select markets heading into 2026.
