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Home affordability continued to strain buyers across the country in late 2025, even as improving mortgage rates and slowing price growth provided limited relief in many housing markets. According to ATTOM’s Q4 2025 U.S. Home Affordability Report, median-priced homes remained less affordable than historical norms in nearly every county analyzed.
While the data points to incremental improvement compared to earlier in the year, rising home prices and slower wage growth continue to limit purchasing power for average American households heading into 2026.
Home Affordability Below Historic Levels in Nearly Every U.S. County
ATTOM’s analysis found that in 99% of the 594 counties reviewed, owning a median-priced single-family home or condominium required a larger share of income than it has historically. This marked the third consecutive quarter in which affordability lagged long-term norms nationwide.
The national median home price reached $365,185 in the fourth quarter of 2025, remaining near record highs. Despite that, affordability improved on a quarter-over-quarter basis in 86% of counties, driven primarily by declining mortgage interest rates and modest price stabilization.
Average interest rates on 30-year fixed-rate mortgages fell from 6.3% in early October to 6.2% percent by the end of December, helping reduce monthly housing costs for buyers.
Home Prices Continue to Outpace Wage Growth
Long-term trends remain a central factor in the affordability crisis. Over the past five years, the median U.S. home price increased 54%, while average wages rose just 29%, according to data from the U.S. Bureau of Labor Statistics.
This imbalance has kept many buyers priced out of the market. In the fourth quarter of 2025, homeownership costs exceeded recommended affordability thresholds in 74% of counties, with major housing expenses consuming more than 28% of typical local wages. However, wage growth matched or exceeded home price appreciation in over half of the counties analyzed, offering some relief to prospective buyers.
In Georgia, homeownership requires between 30% and 50% of typical wages in most counties. In Cherokee County, where the median home price is $440,000, purchasing a home requires 51.3% of annualized wages. In Gwinnett County, buyers must allocate 40.3% of their income to afford a median-priced home. More attainable markets include Hall and Bartow counties, where median home prices fall in the mid- to high-$300,000s and housing costs consume less than 40% of annual wages. Inside the perimeter, DeKalb County stands out with a median home price of $302,500 and homeownership costs totaling just 26.3% of typical wages.
Nearly One-Third of Counties Considered Seriously Unaffordable
ATTOM classified 29.5% of counties as “seriously unaffordable,” meaning homeownership expenses exceeded 43% of typical wages. Nationally, the average monthly cost to own a median-priced home totaled $2,015 in the fourth quarter, accounting for mortgage payments, property taxes and insurance.
Although those costs declined slightly from the previous quarter, they still represented more than 31% of the average American’s income. To afford a median-priced home while staying within recommended guidelines, buyers needed an annual income of $86,374 in the fourth quarter. That figure exceeds the national average wage of $77,038, reinforcing the ongoing affordability gap.
What the Home Affordability Data Signals for 2026
ATTOM’s fourth quarter 2025 report highlights persistent affordability challenges across the U.S. housing market. While easing mortgage rates and slower price growth helped improve conditions in many counties late in the year, structural issues tied to wage growth and long-term price appreciation remain unresolved.
As 2026 begins, housing affordability will largely depend on the direction of mortgage rates, economic stability and whether wage growth can narrow the gap with home prices.
Methodology
The ATTOM U.S. Home Affordability Index analyzes median home prices using publicly recorded sales data and compares them with average wage data from the U.S. Bureau of Labor Statistics. The fourth quarter 2025 report includes 594 counties with populations of at least 100,000 and a minimum of 50 single-family home and condominium sales.
Affordability calculations assume a 20% down payment, a 30-year fixed-rate mortgage and a maximum front-end debt-to-income ratio of 28%. Monthly ownership costs include mortgage payments, property taxes, homeowners insurance and mortgage insurance, with interest rates based on Freddie Mac’s Primary Mortgage Market Survey.
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