ATTOM: Home affordability stays strained across the country

Homes remained less affordable than historic norms in nearly every U.S. county at the end of 2025, despite modest improvements late in the year, according to ATTOM’s latest U.S. Home Affordability Report, released Thursday.

In 586 of the 594 counties analyzed (or 99%), median-priced single-family homes and condominiums were less affordable than historic averages in the fourth quarter of the year. The trend has persisted for three consecutive quarters as the national median home price hovered near a record high of roughly $365,000.

The data comes amid preexisting affordability challenges and proposed remedies, including a directive on Thursday from President Donald Trump to Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities (MBS) in an effort to bring down mortgage rates.

In addition to the directive, Trump also proposed a ban on single-family home purchases by large institutional investors, a move that prompted market reaction.

“I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations,” Trump wrote on Truth Social. 

There are few details as to how the plan would be implemented. But Trump is expected to offer more specifics during a speech at the World Economic Forum in Davos, Switzerland, from Jan. 19-23.

As proposals roll in to tackle affordability, ATTOM’s report pointed to signs of easing pressure. Affordability improved from Q3 2025 in 86% of counties, aided in part by falling mortgage rates. The average rate on a 30-year fixed mortgage declined from 6.34% in early October to 6.15% by year’s end, per ATTOM’s data.

“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” Rob Barber, CEO of ATTOM, said in a statement. “Still, modest, quarter-over-quarter affordability improvements in many markets at the end of the year offered some encouragement.

“Over the past five years, home price growth has nearly doubled wage growth, meaning home buying power in 2026 will depend not only on whether prices level off or decline, but also on mortgage rates and broader economic conditions.”

Over the past five years, home prices have risen far faster than wages. The median home price climbed 54% to $365,185 in the fourth quarter, while typical wages increased 29%, based on U.S. Bureau of Labor Statistics data.

ATTOM reported that in 74.1% of counties, home expenses surpassed 28% of a typical resident’s wages. Among the most populous counties, affordability was weakest in parts of California and New York. In Los Angeles County, typical expenses consumed 67.5% of wages, and in Orange County, the ratio topped 90%.

By contrast, homeownership remained affordable in large counties such as Harris County, Texas; Cook County, Illinois; and Philadelphia County, Pennsylvania.

Home prices rose annually in about 70% of counties analyzed, although declines were recorded in several large markets, including Honolulu; Bexar County, Texas; and parts of California. In nearly 30% of counties, housing costs exceeded 43% of typical wages, a level ATTOM considers seriously unaffordable.

To afford the national median-priced home in the fourth quarter while staying within standard guidelines, a buyer would have needed an annual income of about $86,000.