Record High Home Prices Create Unaffordability Crisis Across U.S. Counties

Introduction

In the most recent U.S. Home Affordability Report released by ATTOM, a significant rise in home prices has been observed, making homeownership challenging for many across the country. As the median home price reached a staggering $375,000 in the third quarter of 2025, the implications for average wage earners have been dire. This report delves into the numbers that illustrate the worsening affordability crisis.

Current State of Home Affordability

According to the report, home affordability in 99% of the analyzed counties is worse than historical averages, with nearly half of the 580 counties reporting deteriorated affordability ratings compared to the previous quarter. Rising home prices, coupled with stagnant wage growth, have compounded the struggles for buyers. The data highlights that, despite a drop in mortgage rates from 6.75% to 6.26% in mid-September, this has not been enough to offset the significant increase in home prices experienced over the past years.

Rising Home Prices

The national median home price of $375,000 marks a 4.8% increase from the same time last year. ATTOM's analysis reveals that median home prices have risen in three-quarters of the counties tracked. With 75.5% of the counties experiencing higher prices year-over-year, notably Cuyahoga County, OH, showing a 13% increase, it's evident that the market is trending upward despite buyer pushback due to affordability issues.

Income vs. Home Ownership Costs

Analyzing the relationship between income and home prices reveals stark discrepancies. From the beginning of 2020, home values surged by 58%, while typical wages climbed only 28%. In 79% of the 580 counties, housing expenses now consume more than 28% of typical residents' wages, significantly exceeding the guideline that suggests affordability.

In major urban areas such as Los Angeles, CA, and New York City, NY, the burden of home ownership is excessively high, forcing many potential buyers to reconsider their options. ATTOM's calculations indicate that to afford a median-priced home of $375,000 without exceeding 28% of their income on housing expenses, an annual income of about $90,989 would be necessary.

Geographic Disparities in Affordability

The report also identifies geographical disparities in home affordability. California and New York lead the list of most unaffordable counties, with significant portions of residents’ wages devoted to home expenses. In Kings County, NY, for instance, home expenses accounted for an astonishing 113% of the typical resident's income.
Conversely, some counties, such as Harris County, TX, and Wayne County, MI, allow home costs to remain under 28% of residents' wages, thereby providing a more feasible option for potential homeowners.

Future Projections

Looking forward, the report suggests that while declining mortgage rates might offer some respite to buyers, they could also lead to further increases in home prices. Rob Barber, CEO of ATTOM, highlighted this delicate balance, stating that favorable loan rates could extend the streak of homes being less affordable for residents relative to historical averages.

Conclusion

In summary, the findings from ATTOM’s U.S. Home Affordability Report shed light on a concerning trend in the real estate market: as home prices continue to escalate at an alarming rate, many residents struggle to reconcile their income with rising living costs. As economic indicators point to a complex landscape ahead, stakeholders in real estate must closely monitor these trends to adapt and address the growing crisis of home affordability. Real solutions will be essential to ensure that the dream of homeownership remains viable for future generations.