When it comes to housing affordability, location isn’t just important, it’s crucial. ATTOM Data Solutions’ latest U.S. Home Affordability Report reveals that in the second quarter of 2025, homeownership expenses were unaffordable for typical residents in 77.9% of counties across the country. Nationally, the median home price rose to a historic high of $369,000, requiring average earners to dedicate 33.7% of their income, well above the recommended maximum of 28%,towards housing expenses.
This increasing burden is especially pronounced in populous counties such as Los Angeles County, CA; Cook County, IL (Chicago); and Maricopa County, AZ (Phoenix), where affordability has sharply declined. The report highlights how wages have stagnated compared to rapidly rising home prices: since early 2020, the median home price in the U.S. increased by 55.7%, while average wages rose by just 26.6%.
California leads the nation in housing unaffordability, with counties like Marin and Santa Cruz requiring over 100% of average annual wages to cover homeownership expenses. Meanwhile, counties in the Midwest and Northeast such as Saint Lawrence County, NY, and Macon County, IL, remain more manageable, with housing expenses consuming less than 15% of typical wages.
For real estate agents and investors, these stark contrasts highlight key market opportunities and challenges. Markets experiencing wage growth lagging behind home price appreciation may signal caution for investors and potential difficulties for buyers. Conversely, areas maintaining affordability offer valuable opportunities for strategic property investment and advising clients.
Ultimately, ATTOM’s detailed affordability heat map underscores the importance of precise local market knowledge. For home buyers, sellers, investors, and agents alike, navigating today’s complex housing market demands careful attention to local data and economic trends.
