Title: U.S. Housing Affordability Falls to Historic Lows in Q2 2025
A new report from ATTOM reveals that housing affordability across the United States continued to deteriorate in the second quarter of 2025. In 99% of the counties analyzed, median-priced single-family homes and condominiums were less affordable compared to historical averages. This marks the 14th consecutive quarter where owning and maintaining a home has required a larger portion of the average wage than traditionally needed.
According to ATTOM, major homeownership expenses on a median-priced home now consume 33.7% of the average American’s annual income. This is an increase from 32% in the first quarter of 2025 and far exceeds the 28% threshold generally recommended by mortgage lenders.
“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.”
Since the first quarter of 2020, the median cost to purchase a home in the U.S. has surged by 55.7%, while average wages have grown by just 26.6%, highlighting a growing gap between income and home prices. This widening gap continues to place strain on potential homebuyers and remains a significant challenge in the broader housing market.
