Homes Remain Less Affordable Than Historical Average in 99% of U.S. Counties Analyzed

Despite recent improvements in mortgage rates and softening home prices in parts of the country, home affordability remains well below historical averages in nearly every U.S. county.

In 99% of the 594 counties reviewed, median-priced single-family homes and condos remained less affordable than historical averages in the final quarter of last year, according to a report released Thursday by real estate data firm ATTOM.

The results, which cover counties with at least 100,000 residents and 50 or more home sales in the quarter, are similar to the prior two quarters, with national 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 on a quarterly basis in more than four out of five counties covered in the report.

“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” said ATTOM CEO Rob Barber. “Still, modest, quarter-over-quarter affordability improvements in many markets at the end of the year offered some encouragement."

Since 2020, home prices have risen 54%, far outpacing the 29% gain in typical wages, according to ATTOM's analysis of Labor Department data.

"Over the past five years, home price growth has nearly doubled wage growth, meaning homebuying power in 2026 will depend not only on whether prices level off or decline, but also on mortgage rates and broader economic conditions,” said Barber.

The new report measures affordability by calculating the share of median income needed to cover major homeownership expenses on the median priced home—including mortgage payments, mortgage insurance, property taxes, and homeowners insurance.

In 74% of the counties reviewed, those major home expenses consumed more than 28% of the typical resident's wages, making ownership unaffordable by standard guidelines.

Nationally, home expenses took up 31.4% of the median income in the fourth quarter, down slightly from 33.3% in the third quarter.

The least affordable county for homebuyers in the fourth quarter was Kings County, NY, better known as Brooklyn, where home expenses totaled 103% of median wages. Following closely behind were California's Marin (97%) and Santa Cruz (94%) counties.

Meanwhile, the most affordable county covered in the report was Cambria, PA, a mostly rural county west of Altoona where home expenses require just 13% of the local median income.

The most populous counties where typical home expenses exceeded the 28% of wages threshold were Los Angeles County (67.5% of typical wages); 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 homeownership expenses 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 counties

The national median home prices as measured by ATTOM rose marginally to $365,185 in the fourth quarter, up slightly from $365,000 in each of the previous two quarters.

Typical home prices rose annually in 69.5% of the 594 counties analyzed.

Among the 47 counties in the report with populations over 1 million, those with the largest annual increase in median home sales prices were Suffolk County, NY (+8%); Fulton County, GA (+7%); Allegheny County, PA (+6%).

Of those largest counties, the largest annual drops in home prices were in Honolulu County, HI (-10%); Bexar County, TX (-5%); Hillsborough County, FL (-5%); Alameda County, CA (-5%); and Sacramento County, CA (-5%).