CHESTER COUNTY, PA — U.S. home affordability continues to reach record lows, according to ATTOM’s latest U.S. Home Affordability Report, which found that 99 percent of counties analyzed were less affordable for median-income earners in the second quarter of 2025 compared to historical averages. This trend, mirrored here in Chester County, illustrates growing burdens for homebuyers and homeowners alike as steep housing costs outpace wage growth.
Nationally, homeownership expenses for a median-priced home consumed 33.7 percent of the average wage earner’s income, an increase from 32 percent in the prior quarter. Median U.S. home prices rose to $369,000 in Q2 2025, a 5 percent uptick from Q1 and a 3 percent rise compared to the previous year. Meanwhile, average wages have failed to keep pace, climbing just 26.6 percent since 2020, compared to a 55.7 percent increase in home prices over the same period.
“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.”
For Chester County residents, the impact is pronounced. The median home price locally not only exceeds the national average but continues to outpace the income growth of its residents. Based on ATTOM’s affordability methodology, the typical Chester County household would need a significant share of its income to cover major ownership costs, including mortgage payments, property taxes, and home insurance.
This aligns with the broader picture in Pennsylvania, where multiple counties, including Philadelphia and Allegheny, show home expenses consuming upward of 21 percent of the typical income, pushing affordability benchmarks. With the average 30-year fixed mortgage rate standing at 6.82 percent, many first-time buyers in Chester County face daunting financial challenges, further compounded by limited local wage escalation.
However, Chester County retains some advantage compared to areas like Marin County, CA, or Kings County, NY, where ownership costs consume well over 100 percent of average wages. Locally, efforts to address these trends, including diversifying housing stock and exploring wage growth opportunities, remain critical components for balancing affordability.
National and local policymakers continue to observe these affordability markers closely, as they hold implications for economic stability, population growth, and the broader housing market. Chester County, with its blend of suburban and rural areas near Philadelphia, represents both a microcosm of national struggles and a bellwether for regional economic resilience against escalating housing costs.
ATTOM’s quarterly report serves as a stark reminder of the growing disparity between rising housing costs and stagnating wage growth, a challenge that will likely play a defining role in shaping Chester County’s housing market in the months ahead.
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