Homeownership Remains Out of Reach for Most Americans as Housing Costs Climb Higher

For millions of Americans, the dream of owning a home continues to slip further out of reach. According to new data from ATTOM’s Q2 2025 U.S. Home Affordability Report, nearly every county in the country 99% of those analyzed now shows homeownership to be less affordable than historical norms.

It marks the 14th consecutive quarter where homebuyers have needed to devote a larger share of their income to housing than in previous decades, a troubling trend that highlights the deepening strain on affordability.

Mortgage Payments Continue to Climb

In tandem with these findings, the Mortgage Bankers Association (MBA) reported a continued rise in the national median mortgage application payment in May. The typical monthly payment rose to $2,211, up from $2,186 in April, as mortgage rates hover just below the 7% mark.

“Affordability took another hit in May,” said Edward Seiler, Associate VP of Housing Economics at the MBA. “High mortgage rates are tightening homebuyer budgets, even though many are still eager to purchase. Thankfully, rising inventory and a slowdown in price acceleration have provided some relief this spring.”

ATTOM’s data backs up Seiler’s sentiment. In Q2, major monthly costs tied to owning a median-priced U.S. home would take up 33.7% of the average American’s income well above the traditional 28% affordability threshold used by lenders. That’s also a jump from 32% recorded in the first quarter of the year.

Wages Can’t Keep Up With Home Price

The mismatch between home values and wages is becoming more severe. The national median home price hit $369,000 in Q2 2025, rising from $350,275 in Q1. Since the beginning of 2020, prices have surged nearly 56%, while average earnings have only increased about 27%, according to the latest Bureau of Labor Statistics data.

“The pressure on buyers is intense,” said ATTOM CEO Rob Barber. “Prices haven’t let up, mortgage rates remain elevated, and income growth simply isn’t keeping pace. For many, this makes entering the housing market an uphill battle.”

ATTOM uses a comprehensive approach to assess affordability, estimating what percentage of income would be needed to cover mortgage payments, insurance, property taxes, and mortgage insurance on a median-priced home, assuming a 20% down payment and a 28% debt-to-income cap.

Regional Trends: Where Prices Are Rising and Falling

From Q1 to Q2 of this year, home prices jumped 5% nationwide and rose year-over-year in two-thirds of the 579 counties analyzed. Notable increases occurred in:

• Bronx County, NY (+14%)
• Suffolk County, NY (+6%)
• Queens County, NY (+6%)
• Philadelphia County, PA (+6%)
• Hennepin County, MN (+5%)

But not all markets are on the upswing. Some metro areas experienced price declines, including:

• Contra Costa County, CA (-5%)
• Travis County, TX (-4%)
• Alameda County, CA (-3%)
• Manhattan, NY (-3%)
• Hillsborough County, FL (-3%)

Even in counties where prices are softening, affordability challenges persist due to high mortgage rates and inflation-adjusted wage stagnation.

Most Americans Are Priced Out

Among the 579 counties reviewed, 575 or 99.3% were less affordable than their historical averages. That figure is up from 96.9% just a quarter earlier. Worse, in 451 of these counties, owning a home would eat up more than 28% of the average income, making them officially “unaffordable” by standard lending definitions.

These counties include many of the nation’s most populous areas, such as:

• Los Angeles County, CA
• Cook County (Chicago), IL
• Maricopa County (Phoenix), AZ
• San Diego County, CA
• Orange County, CA

Only a few large counties remain affordable, including:

• Harris County (Houston), TX
• Wayne County (Detroit), MI
• Philadelphia County, PA
• Cuyahoga County (Cleveland), OH
• Allegheny County (Pittsburgh), PA

The Road Ahead

The data suggests that unless there’s a significant drop in mortgage rates or a surge in income, homeownership will remain out of reach for the typical American household. The housing market’s affordability crisis has grown steadily since the pandemic housing boom, and there’s no quick fix in sight.

More housing inventory is coming online, and home price growth appears to be cooling slightly but without broader wage gains or policy shifts to support affordability, the outlook remains difficult for many would-be buyers.

“Housing affordability has been a slow-moving crisis for years, and now it’s reaching a boiling point,” said Barber. “The imbalance between wages and home prices is no longer just a coastal issue it’s happening nationwide.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.