According to a new report from property data provider ATTOM, U.S. housing affordability remained under pressure in the third quarter of 2026, with homeownership costs exceeding historical affordability levels in 98% of U.S. counties analyzed, despite a modest decline in national home prices.<\/p>\n
The company’s third-quarter U.S. Home Affordability Report found that major monthly ownership expenses for median-priced single-family homes and condominiums exceeded historical norms in 570 of 583 counties with sufficient data. In 467 counties, representing 80.1% of the total, those expenses consumed more than the typical resident’s wages under ATTOM’s affordability analysis.<\/p>\n
The findings underscore the persistent disconnect between housing costs and household earnings. Although wage growth outpaced home-price appreciation in a majority of markets, elevated mortgage rates, insurance premiums, property taxes and other ownership expenses continued to limit affordability.<\/p>\n
“Affordability remained a challenge in the third quarter, even as some of the underlying factors moved in a favorable direction,” said Rob Barber, CEO of ATTOM. “Home prices declined nationally and wage growth outpaced price growth in many counties, but those gains were not enough to meaningfully improve affordability across much of the country.”<\/p>\n
Mortgage rates and ownership costs sustain affordability pressures<\/strong><\/p>\n The national median home sales price fell to $368,000 in the third quarter, down from $370,000 in the second quarter and $375,000 a year earlier. The declines offered some relief to prospective buyers, but financing costs remained elevated.<\/p>\n At the end of the quarter, the average 30-year fixed mortgage rate stood at 7.3%, while the 15-year fixed rate reached 6.6%, levels approaching highs last seen in 2023. Meanwhile, the Consumer Price Index rose throughout the quarter, adding to broader household cost pressures.<\/p>\n ATTOM evaluates affordability by estimating the income required to cover mortgage payments, mortgage insurance, property taxes and homeowners insurance on a median-priced home, assuming a 20% down payment. The analysis measures those expenses against local wage data, using 28% of gross income as the maximum recommended share devoted to housing costs.<\/p>\n Nationally, ownership expenses on a median-priced home would have consumed 31.8% of the typical worker’s wages during the quarter, exceeding that benchmark.<\/p>\n The burden was considerably higher in some markets. In 180 counties, or 30.9% of those analyzed, monthly ownership expenses would have absorbed more than 43% of typical wages, a level ATTOM classifies as seriously unaffordable.<\/p>\n California and New York dominate the least affordable markets<\/strong><\/p>\n California accounted for 12 of the 25 counties where homeownership costs consumed the largest share of typical wages. New York contributed six counties, followed by New Jersey with three and Hawaii with two.<\/p>\n Kings County, New York, ranked as the nation’s least affordable market in the analysis, with estimated ownership expenses on a median-priced home consuming 114.1% of typical resident wages. Santa Cruz County, California, followed at 105.5%, ahead of Marin County, California, at 102.4%, Orange County, California, at 92.6%, and Monterey County, California, at 91.8%.<\/p>\n The income required to meet ATTOM’s 28% affordability guideline was also highest in expensive coastal markets. New York County, New York, required an estimated annual income of $409,992, followed by San Mateo County, California, at $381,550; Santa Clara County, California, at $363,242; San Francisco County, California, at $361,805; and Marin County, California, at $348,321.<\/p>\n Among large population centers, the cost burden was particularly pronounced in Orange County, California, where ownership expenses consumed 92.6% of typical wages. Nassau County, New York, registered 79.6%, Queens County, New York, 76.7%, and Los Angeles County, California, 69.9%.<\/p>\n Texas markets record sharp price increases<\/strong><\/p>\n While national home prices declined, appreciation continued across many local markets. Median home prices rose year over year in 375 counties, representing 64.3% of the 583 counties included in the report.<\/p>\n The largest reported annual increases among counties with populations exceeding one million were concentrated in Texas. Travis County recorded a 105% increase, followed by Dallas County at 91%, Bexar County at 87%, Collin County at 72% and Harris County at 62%.<\/p>\n By contrast, the largest annual price declines among the most populous counties occurred in Middlesex County, Massachusetts, where prices fell 11%; Orange County, Florida, down 10%; Duval County, Florida, down 8%; Miami-Dade County, Florida, down 5%; and Clark County, Nevada, down 5%.<\/p>\n The divergent regional results illustrate how national price trends can obscure sharply different conditions at the local level.<\/p>\n Wage growth outpaces prices in most counties, but affordability gains remain limited<\/strong><\/p>\n Typical wages grew faster than home prices in 343 counties, or 58.9% of those analyzed. That trend suggests improving purchasing power relative to home values in many markets, although it did not necessarily translate into affordable monthly payments.<\/p>\n Among populous counties, home prices rose faster than wages in Cook County, Illinois; Harris and Dallas counties in Texas; Queens County, New York; and San Bernardino County, California.<\/p>\n Wage growth outpaced home-price appreciation in Los Angeles, Maricopa and San Diego counties, as well as Orange County, California, and Miami-Dade County, Florida.<\/p>\n Even where wage growth was favorable, higher financing costs and other recurring expenses continued to constrain buyers’ ability to qualify for mortgages and manage monthly payments.<\/p>\n Affordability remains strained even by historical standards<\/strong><\/p>\n ATTOM’s historical affordability index identified several Texas counties among the markets furthest below their own long-term affordability benchmarks. Cameron County recorded an index of 23, followed by Brazoria and Hidalgo counties at 31 each, and Potter and Hunt counties at 32 each.<\/p>\n The report included counties with populations of at least 100,000 and at least 50 single-family home and condominium sales during the third quarter.<\/p>\n Taken together, the findings point to a housing market in which modest national price declines and relatively favorable wage growth have not overcome the combined impact of mortgage rates and ongoing ownership expenses. For prospective buyers, affordability continues to depend heavily on local home prices, income levels and the full cost of financing and maintaining a property.<\/p>\n\n