ATTOM: Home Affordability Continues to Weaken Across Country
(Image courtesy of Rich Howard/pexels.com)
ATTOM, Irvine, Calif., released its U.S. Home Affordability Report for Q2, finding that in 99% of counties analyzed, median-priced single-family homes and condos were less affordable than historical averages.
The major expenses for a median-priced home in the U.S. would have consumed 33.7% of the average American’s annual income, up from 32% in Q1 and well above the 28% recommended by lenders.
It’s the 14th straight quarter in which purchasing and maintaining a median-priced home has required a higher percentage of the typical owner’s wages than historically necessary.
Compared to historical averages, owning a median-priced home in Q2 was less affordable in 99.3% of counties with sufficient data, up from 96.9% in Q1.
In 77.9% of the counties, home expenses in Q2 exceeded 28% of the typical resident’s wages.
ATTOM includes as home expenses in its methodology mortgage payments, mortgage and homeowners insurance and property taxes on a median-priced single-family home or condo, assuming a 20% down payment.
Nationwide, the typical monthly cost of those expenses was $2,125 in Q2 2025, up 5% from Q1 and up 1% year-over-year.
In order to keep homeownership expenses under the recommended 28% guideline, purchasing the national median-priced home would have required an annual income of at least $91,066.
“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.”
Since Q1 2020, the median cost to purchase a home in the U.S. has risen 55.7%, while the average wage has only grown by 26.6%.
However, the cost of purchasing a median-priced home rose faster than average wages in 34.9% of the counties during Q2, compared with 46.9% in Q1.
