Homes remain less affordable than historical averages in 99% of U.S. counties analyzed
Despite recent improvements in mortgage rates and declining home prices in parts of the country, housing affordability remains well below historical averages in nearly every U.S. county.
In 99% of the 594 counties surveyed, average-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 a real estate data company. ATOM.
The results, which cover counties with at least 100,000 residents and 50 or more home sales in the quarter, are similar to the previous two quarters, with national average 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 quarterly in more than four of the five counties covered in the report.
“Many Americans needed to purchase a home by 2025, and affordability remains worse than historical norms in most markets,” said ATTOM CEO. Rob Kapper. “Still, modest quarter-over-quarter improvements in affordability in many markets provided some encouragement at year-end.”
According to ATTOM’s analysis of Labor Department data, home prices have risen 54% since 2020, easily exceeding the 29% increase in average wages.
“Over the past five years, house price growth has almost doubled, meaning that the purchasing power of homes in 2026 will depend not only on whether prices flatten or fall, but also on mortgage rates and broader economic conditions,” Barber said.
The new report measures affordability by calculating the share of median income needed to cover the major costs of owning an average-priced home, including mortgage payments, mortgage insurance, property taxes and homeowners insurance.
In 74% of the counties surveyed, these large housing costs eat up more than 28% of the resident’s median income, making ownership unaffordable under the SOPs.
Nationally, housing costs rose by 31.4% of median income in the fourth quarter, slightly less than the 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 housing costs totaled 103% of the median wage. Closely followed by Marin (97%) and Santa Cruz (94%) counties in California.
Meanwhile, Cambria, PA, was a largely rural county west of Altoona, where home costs require just 13% of the local median income.
The most populous counties where typical home costs 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 costs would be considered affordable were Cook County, Illinois (26%); Harris County, Texas (22%); and Dallas County, Texas (28%).
Average house prices rose in more than two-thirds of the provinces
National median home prices, as measured by ATTOM, increased marginally to $365,185 in the fourth quarter, up slightly from $365,000 in each of the previous two quarters.
Average house prices rose annually in 69.5% of the 594 provinces analyzed.
Of the 47 counties in the report with more than 1 million residents, the counties with the largest annual increases in median home sales prices were Suffolk County, NY (+8%); Fulton County, Georgia (+7%); Allegheny County, PA (+6%).
Among the largest counties, the largest annual declines in home prices occurred in Honolulu County, HI (-10%); Bexar County, Texas (-5%); Hillsborough County, Florida (-5%); Alameda County, California (-5%); and Sacramento County, CA (-5%).
