CHESTER COUNTY, PA — Chester County’s housing market remained out of reach for many buyers in the first quarter of 2026, as rising home prices and borrowing costs pushed ownership expenses well beyond standard affordability thresholds, according to a local affordability analysis and national data from ATTOM.
The median home sale price in Chester County reached about $493,333 in early 2026. A buyer putting down 20 percent, or $98,667, would finance roughly $394,666, resulting in a monthly principal and interest payment of about $2,483 based on an average 30-year fixed mortgage rate of 6.46 percent, according to Freddie Mac data.
Additional carrying costs significantly increased the monthly burden.
Property taxes averaged about 31.5 mills across the county, producing an estimated monthly tax bill of $1,295 on a median-priced home. Homeowners insurance added about $175 per month, bringing total monthly housing costs to approximately $3,953. Private mortgage insurance was not required due to the 20 percent down payment.
Affordability calculations show a substantial gap between housing costs and local earnings.
Based on Pennsylvania Department of Labor & Industry data, the average weekly wage of $1,394 equates to about $6,041 in monthly income. At that level, a typical buyer would need to spend roughly 65.4 percent of gross monthly income on housing, more than double the commonly used 28 percent affordability benchmark.
The data indicates that single-income households earning average wages would likely require additional financial resources or a second income to afford a median-priced home in the county.
National data reflects similar pressures, though with slight improvement from recent quarters.
ATTOM reported that in the first quarter of 2026, median-priced homes were less affordable than historical averages in 97 percent of the 580 counties analyzed. That marked a modest improvement from 98 percent in the previous quarter and from early 2025 levels.
Major homeownership expenses exceeded typical affordability benchmarks in 560 of the 580 counties studied, though ATTOM noted conditions improved slightly compared with late 2025.
“Over the last several years, wages haven’t kept up with rising home prices in many markets,” said Rob Barber, CEO of ATTOM. “Mortgage rates dropped throughout last year, which offset some of that growing affordability gap, but shifts in the broader economic environment can still influence rates and home purchasing power.”
Nationally, median home prices remained at $360,000 in the first quarter of 2026, unchanged from the prior quarter but up 8 percent from early 2024. During that period, average wages increased by 6.4 percent, according to Bureau of Labor Statistics data through the third quarter of 2025.
Mortgage rates declined through much of 2025, reaching 5.98 percent in February, before rising again to 6.22 percent by March 19 amid market volatility and inflation concerns.
ATTOM found that in 69.1 percent of counties analyzed, major homeownership expenses exceeded 28 percent of average wages, making homeownership unaffordable by standard guidelines.
Among large counties, the highest cost burdens relative to income were reported in Orange County, California, where expenses consumed 88.1 percent of wages, and Los Angeles County, where they reached 66 percent. By contrast, several counties in Texas and Illinois remained below the 28 percent threshold, including Harris County, Texas, at 21.2 percent, and Cook County, Illinois, at 25.1 percent.
Philadelphia County, Pennsylvania, was also among the more affordable large counties, with housing costs averaging 17.3 percent of wages.
Nationwide, major expenses on a median-priced home consumed 30.3 percent of average wages in the first quarter of 2026, down slightly from 30.6 percent in the prior quarter and 31.6 percent a year earlier.
ATTOM reported that in nearly one-quarter of counties, housing costs exceeded 43 percent of wages, a level considered seriously unaffordable.
The report also found that wage growth outpaced home price increases in 64 percent of counties between the first quarters of 2025 and 2026, although home prices continue to rise faster over longer periods.
ATTOM’s analysis is based on publicly recorded home sales, average wage data from the Bureau of Labor Statistics, and mortgage rate data from Freddie Mac, using a standard assumption of a 20 percent down payment and a 28 percent front-end debt-to-income ratio.
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