CHESTER COUNTY, PA — Housing affordability remains a mounting challenge in Chester County, where home prices continue to rise faster than wages. A new analysis of 2025 market data shows that while the county benefits from strong household incomes and economic appeal, the gap between what families earn and what homes cost is growing wider.
As of August 2025, the median sale price for a home in Chester County reached $552,083, up 4.3% year over year. The median list price stood at $595,000. At the same time, 30-year fixed mortgage rates averaged between 6.32% and 6.47% in September, significantly above the historically low levels seen during the pandemic. Buyers are now facing significantly higher monthly payments even as homes sell quickly, with a median of just seven days on the market.
Local income data underscores the strain. The county’s median household income tops $123,000, but for many workers in healthcare, education, and retail, typical pay is closer to $61,000. In 2024, a household at 100% of Area Median Income could afford a home of about $433,000—well below today’s median sales price.
The shortage of affordable homes under $250,000, combined with limited new construction focused largely on higher-priced units, has made entry into the market especially difficult. Demographic changes, including a projected rise in senior citizens on fixed incomes, are expected to add further pressure.
National data shows Chester County’s experience reflects a broader trend. ATTOM’s latest U.S. Home Affordability Report found that median-priced homes were less affordable than historical averages in 99% of counties studied during the third quarter of 2025. Nationwide, the median home price reached a record $375,000, while wages have lagged behind.
“The drop in mortgage rates will help some buyers keep pace with the rising cost of homes,” said Rob Barber, CEO of ATTOM. “But the more favorable loan rates could also enable prices to keep rising and further extend this two-and-a-half-year streak we’re in of homes being less affordable to the typical resident.”
According to ATTOM, homeownership expenses consumed 33.3% of the typical American’s wages in the third quarter, up from 32.2% a year earlier. In 34% of counties studied, those expenses exceeded 43% of wages—levels considered seriously unaffordable.
For Chester County residents, the message is clear: while demand remains strong and sellers hold leverage, affordability is slipping further from reach for many prospective buyers.
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