Home affordability deteriorates in 99% of US counties

Affordability declines for the 14th straight quarter as buyers face rising prices and stagnant wages

Home affordability deteriorates in 99% of US counties

The pressure is mounting for prospective homebuyers as housing affordability continues to deteriorate, according to ATTOM’s latest US Home Affordability Report.

The report reveals that in the second quarter of 2025, 99.3% of counties with sufficient data saw median-priced single-family homes and condos become less affordable compared to historical averages, norms, up from 96.9% in Q1. This marks the 14th consecutive quarter where homeownership consumes a higher share of typical wages than the long-term norm.

The affordability metric is based on the income required to meet standard ownership costs for a median-priced single-family home or condo, assuming a 20% down payment and a front-end debt-to-income cap of 28%.

"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," said Rob Barber, CEO of ATTOM. "Prices just continue to rise and there's been no relief on mortgage rates. Meanwhile, typical wages are barely increasing from quarter-to-quarter."

The cost of owning a median-priced home – including mortgage payments, insurance, and property taxes – accounted for 33.7% of the average national wage in Q2. That’s up from 32% in Q1 and far above the 28% lender-recommended maximum.

The median home price climbed to $369,000 in Q2, rebounding from $350,275 in Q1. That increase follows a dip from $355,000 in the last quarter of 2024. During the same period, the average 30-year fixed mortgage rate hovered at 6.82%, reinforcing the strain on borrower budgets.

Read next: US new-home sales dip to seven-month low

Since Q1 2020, the median cost to purchase a home has surged 55.7%. Over that same timeframe, wages have only grown 26.6%, based on the latest Bureau of Labor Statistics data from Q4 2024.

Affordability strain

The Mortgage Bankers Association (MBA) reported a further decline in affordability in May. Its Purchase Applications Payment Index (PAPI) rose 1.0% to 164.9 from 163.0 in April, reflecting increasing financial pressure on purchase applicants. The national median monthly payment applied for climbed to $2,211 from $2,186.

Homebuyer affordability declined in May as mortgage rates near 7% continued to put upward pressure on prospective homebuyers’ budgets,” said Edward Seiler, MBA’s associate vice president of housing economics. “Despite current affordability constraints, many homebuyers are still eager to enter the housing market. Rising inventory levels and moderating home-price growth have both been bright spots during this year’s spring homebuying season.”

MBA’s year-over-year PAPI data showed a 5.8% drop, indicating some improvement in affordability due to wage growth.

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