End of 2025 Sees Slight Improvement in Housing Affordability

While affordability remains low across the housing market, it improved slightly at the end of the year. According to ATTOM’s latest Home Affordability Report, homes were more affordable in Q-4 2025 than in the previous quarter in 511, or 86%, of the 594 counties analyzed.

Still, homes remain unaffordable on average, with the national median remaining at a near record high of $365,000. Compared with historical averages, homes were considered less affordable in 99% of the 594 counties analyzed in the report.

Falling mortgage rates and a recent increase in wages helped contribute to the improved affordability, despite rising home prices

Mortgage rates also continued to fall in Q-4 2025, with average interest on a 30-year fixed rate loan dropping from 6.34% at the beginning of October to 6.15% by the end of the year. Additionally, wages rose by 29% as of most recent Q-2 2025 data, helping balance out growing median sales prices over the last few quarters.

Where did the median home price grow the most?

The national median home prices rose slightly to $365,185 in Q-4 2025, compared with the median of $365,000 in each of the previous two quarters. Typical home prices rose annually in 413, or 69.5%, of the 594 counties analyzed.

Counties that saw the largest annual increase in median sales prices include Suffolk County, N.Y., where prices were up by 8%; Fulton County, Ga., where prices grew by 7%; and Allegheny County, Pa., Bronx County, N.Y., and Nassau County, N.Y., where they grew by 6%.