Homeownership costs remained above historical affordability levels in 98% of U.S. counties analyzed during the third quarter of 2026, according to property data firm ATTOM, as declining home prices and stronger wage growth failed to offset the burden of mortgage payments, taxes and insurance.
The company’s latest U.S. Home Affordability Report found that median-priced homes were less affordable than historical norms in 570 of 583 counties, even as the national median sales price fell to $368,000 from $370,000 in the second quarter and $375,000 a year earlier.
The findings underscore the persistence of housing affordability pressures despite a 2% annual decline in the national median home price. Mortgage rates remained elevated, with the 30-year fixed rate at 7.3% and the 15-year fixed rate at 6.6% at the end of the quarter, according to the report.
In 467 counties, representing 80.1% of those analyzed, typical homeownership expenses exceeded the affordability threshold for local wage earners. ATTOM defines that threshold as housing costs consuming no more than 28% of annual income.
Nationally, monthly expenses for a median-priced home required 31.8% of the typical worker’s wages.
“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,” ATTOM Chief Executive Officer Rob Barber said.
The report found that 180 counties, or 30.9% of those studied, met ATTOM’s definition of seriously unaffordable, with ownership expenses exceeding 43% of typical wages.
Affordability pressures were particularly pronounced in coastal markets. In Kings County, New York, which includes Brooklyn, monthly ownership expenses for a median-priced home equaled 114.1% of typical wages.
Santa Cruz County, California, followed at 105.5%, while Marin County reached 102.4%. Orange County, California, registered 92.6%, and Monterey County stood at 91.8%.
California accounted for 12 of the 25 counties with the highest ownership-cost burdens, followed by New York with six, New Jersey with three and Hawaii with two.
Among counties with populations exceeding 1 million, Nassau County, New York, required 79.6% of typical wages for homeownership expenses, while Queens County, New York, required 76.7% and Los Angeles County, California, required 69.9%.
The income needed to purchase a median-priced home under the 28% affordability guideline reached $409,992 annually in New York County, the highest figure in the report.
Required annual income exceeded $380,000 in San Mateo County, California, and $360,000 in both Santa Clara and San Francisco counties.
Philadelphia County, Pennsylvania, was among the largest counties where median-priced homes remained affordable under ATTOM’s methodology. Typical ownership expenses consumed 20.2% of local wages, compared with 30.2% in Cook County, Illinois, and 37% in Maricopa County, Arizona.
Other populous counties meeting the affordability threshold included Harris County, Texas, at 20.7%; Dallas County, Texas, at 24.3%; Bexar County, Texas, at 27.2%; and Wayne County, Michigan, at 17.9%.
National price declines also concealed substantial differences among local housing markets.
Median home prices increased year over year in 375 counties, or 64.3% of those analyzed, despite the decline in the national median.
ATTOM reported particularly large increases in several Texas counties with populations exceeding 1 million, including Travis County at 105%, Dallas County at 91%, Bexar County at 87%, Collin County at 72% and Harris County at 62%.
The largest annual declines among similarly populated counties occurred in Middlesex County, Massachusetts, where prices fell 11%, and Orange County, Florida, where they dropped 10%. Duval County, Florida, recorded an 8% decline, while Miami-Dade County, Florida, and Clark County, Nevada, each fell 5%.
Wage growth provided some relief. Average wages increased faster than median home prices in 343 counties, representing 58.9% of the markets studied.
That included Los Angeles, San Diego and Orange counties in California, along with Maricopa County, Arizona, and Miami-Dade County, Florida.
Nevertheless, stronger wage growth did not necessarily restore affordability in markets where homeownership costs already consumed a substantial share of household earnings.
The report also measured current affordability against each county’s historical conditions. Cameron County, Texas, recorded the lowest affordability index at 23, followed by Brazoria and Hidalgo counties at 31 and Potter and Hunt counties at 32.
ATTOM calculated affordability using median prices for single-family homes and condominiums, assuming a 20% down payment and including mortgage payments, mortgage insurance, property taxes and homeowners insurance.
Those costs were compared with annualized average weekly wage data from the U.S. Bureau of Labor Statistics.
The analysis covered counties with populations of at least 100,000 and a minimum of 50 qualifying home sales during the third quarter.
The results indicate that modest national price declines and wage gains have yet to reverse the deterioration in housing affordability across most U.S. markets, leaving ownership costs above historical norms even in some areas where homes remain affordable under conventional income guidelines.
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