According to a recent report issued by real estate data firm ATTOM, homeownership in the United States remains out of reach for most Americans by the end of 2025, as affordability continues to sit at historically low levels across the majority of major housing markets.
The analysis, which covered 594 counties, showed that median-priced single-family homes and condominiums became less affordable in 99% of these counties (586 counties) during the final quarter of the year compared to their historical averages. This marked the third consecutive quarter of declining affordability, driven by home prices remaining near record highs while wage growth failed to keep pace.
The national median home price reached USD 365,185 in the last quarter, reflecting relative stability compared to the previous two quarters while remaining close to its historical peak. Over the past five years, home prices have surged by 54%, nearly double the growth rate of wages, which increased by only 29% over the same period, according to data from the U.S. Bureau of Labor Statistics.
Although the overall data paints a bleak picture, some improvement emerged toward the end of the year. Housing costs became more affordable in 86% of the analyzed counties, partly supported by declining mortgage rates. The average 30-year fixed mortgage rate fell from 6.34% in October to 6.15% by year-end.
Rob Barber, CEO of ATTOM, commented that a large number of Americans struggled to purchase a home in 2025 due to rising prices and wages failing to keep up. He added that the slight improvements seen at the end of the year offered only modest hope, dependent on a combination of factors such as price trends, mortgage interest rates, and broader economic conditions heading into 2026.
Ownership Costs Exceed Typical Affordability Benchmarks
ATTOM bases its affordability assessment on a proprietary benchmark that measures the income required to cover the cost of owning a median-priced home. Key costs include mortgage payments, property taxes, and homeowners’ insurance, assuming a 20% down payment and a debt-to-income ratio not exceeding 28%.
Using this methodology, ownership costs were found to be unaffordable in 74.1% of the counties analyzed. In those areas, required monthly expenses exceeded 28% of the average local income.
Affordability challenges worsened dramatically in several densely populated regions, such as Orange County and Los Angeles County in California, where ownership costs consumed approximately 90.3% and 67.5% of residents’ monthly income, respectively. Other counties, including San Diego and Miami-Dade, recorded similar levels, with cost ratios ranging between 43% and 67%.
By contrast, some major urban areas maintained more reasonable housing cost levels, such as Houston, Texas, where ownership costs accounted for 21.9% of income, and Philadelphia at 19.2%, along with other counties such as Dallas and Cook.
Prices Show Uneven Fluctuations Across Markets
Around 70% of the counties studied recorded annual home price increases during the final quarter of the year. Among large population centers, annual price growth exceeded 8% in Suffolk County, New York, and 7% in Fulton County, Georgia.
However, several major markets posted notable price declines, including Honolulu in Hawaii and counties in Florida and California, where prices fell by approximately 5% to 10%. As the gap between wages and rising prices continues to widen, conditions have deteriorated further in crowded markets such as New York and Pennsylvania.
