Rising Costs Make Homes Unaffordable in Most US Counties
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.
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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Homebuyers Now Need to Earn 81% More Than Renters: Because of rising home prices and mortgage rates, it is now more expensive to buy than rent a house.
- Homebuyers Must Earn 70% More Than They Needed 6 Years Ago: Households must now earn $114,000 in order to comfortably afford the median priced home in the U.S.