Rising Costs Make Homes Unaffordable in Most US Counties

Owning a median-priced home now consumes 33.7% of the average American’s annual income.
July 3, 2025
2 min read

Homeownership is becoming increasingly out of reach for the average American, with housing costs rising far faster than wages. A recent report from property data provider ATTOM reveals that in 99% of U.S. counties, median-priced single-family homes and condos were less affordable in Q2 2025 than historical norms. This marks the 14th straight quarter where the cost of buying and maintaining a median-priced home has eaten up a larger share of the typical owner's income than usual. Since early 2020, median home prices have surged by 55.7%, while average wages have risen by just 26.6%.

As of Q1 2025, owning a median-priced home consumes 33.7% of the average American’s annual income, which is up from 32% in Q1 2025 and significantly above the 28% threshold typically recommended by lenders.

The squeeze is really on for would-be buyers as we go into the summer, which is usually when the housing market is most active. Prices just continue to rise and there’s been no relief on mortgage rates. Meanwhile, typical wages are barely increasing from quarter-to-quarter.

- Rob Barber, CEO of ATTOM

Homes were deemed unaffordable in nearly 78% of major U.S. counties in Q2 2025

In 77.9%—or 451—of the 579 counties analyzed in the report, home expenses during Q2 2025 exceeded 28% of the typical resident’s wages. This includes many of the most populous U.S. counties, such as Los Angeles County, Calif., and Cook County, Ill., where Chicago is located. 

On the other end of the spectrum, home expenses in Harris County, Texas, and Wayne County, Mich.—which are home to Houston and Detroit—account for less than 28% of the typical resident’s wages.

 

In order for homes to become more affordable, wages would need to rise significantly

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