Housing affordability remained worse in most markets in the fourth quarter than historical norms, says a report released Thursday by real estate market analytics firm Attom.
In 86% of U.S. counties the company analyzed, however, homes were more affordable in the fourth quarter than in the third quarter.
The glimmer of improved affordability heading into 2026 came with a caveat from Rob Barber, CEO of Attom, in a statement accompanying the new figures.
“Over the past five years, home price growth has nearly doubled wage growth, meaning homebuying power in 2026 will depend not only on whether prices level off or decline, but also on mortgage rates and broader economic conditions,” said Barber.
Attom assesses that the typical monthly cost of mortgage payments, homeowners insurance, mortgage insurance and property taxes was $2,015 in the fourth quarter of 2025, a 2% decline from the third quarter and 1% lower than the fourth quarter of last year.
To purchase a national median-priced home in the fourth quarter and keep expenses below the recommended threshold of 28% of annual income, a buyer would need an annual income of $86,374, according to Attom.
That typical fourth-quarter mortgage cost of $2,015 for a median-priced home would have consumed more than 31% of the typical U.S. resident’s wages. Attom puts the national median home price at $365,000 in the fourth quarter.
In nearly 30% of counties analyzed, fourth-quarter home purchase expenses exceeded 43% of the typical county resident’s wages, a threshold considered seriously unaffordable.
“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” added Barber.
Among the 25 counties where the purchase of a median-priced home would consume the greatest share of a typical resident’s wages, California claimed 14, followed by New York and New Jersey, which each claimed three.
The most populous counties where the monthly ratio of home expenses to wages exceeded 28% included Los Angeles County, Calif., at 67.5% of typical local wages; San Diego County, Calif., at 67.4% of typical wages; and Orange County, Calif., at 90.3% of typical wages.
The counties considered more affordable by Attom’s metric were Cuyahoga County, Ohio, where typical monthly housing expenses consumed 19.6% of typical wages; Philadelphia County, Pa., at 19.2% of wages; and Harris County, Texas, at 21.9% of wages.
