Despite a trend of significant depreciation in home-price growth, home prices remain elevated overall. Coupled with rising mortgage rates, elevated inflation and wages not rising in tandem with home prices, affordability still feels out of reach for many in the housing market. However, while homeownership remains widely unaffordable, there are minor improvements being seen, according to the latest data from ATTOM.
ATTOM’s Q1 2026 Home Affordability Report found that major monthly expenses (mortgage payments, mortgage insurance, property taxes and homeowners insurance) for median-priced single-family homes and condos exceeded historic norms in 560 out of the 580 counties analyzed, translating to 96.6% (assuming a 20% down payment and a 28% maximum “front-end” debt-to-income ratio).
Though still a high percentage, ATTOM noted this is an improvement from 98% (567 of the 580 counties) last quarter, and is better year-over-year from 97% (564 out of 580 counties) in Q1 2025. Slow improvement, but an improvement nonetheless.
“Over the last several years, wages haven’t kept up with rising home prices in many markets,” said ATTOM CEO Rob Barber. “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.”
Major monthly home expenses exceeded the 28% threshold previously mentioned in 69.1% (401) of the 580 counties in Q1 2026, meaning homeownership remains largely on the unaffordable side of the spectrum. However, home expenses on average consumed 30.3% of the typical worker’s wages, improving slightly from 30.6% last quarter and 31.6% at the same time last year.
Of the 25 counties where major monthly home expenses ate up the largest portions of homeowner’s incomes, 14 were in California, four were in New York, three were in New Jersey and two were in Hawaii—all states known for their affordability challenges.
The most populous counties where monthly home expenses surpassed that 28% threshold were Los Angeles County, California (home expenses required 66% of a typical resident’s wages); Maricopa County, Arizona (36.6% of wages); San Diego County, California (65.7% of wages); Orange County, California (88.1% of wages); and Miami-Dade County, Florida (43.6% of wages).
The counties where purchasing a home were least affordable were Kings County, New York (108.6% of typical wages); Santa Cruz County, California (97.1% of typical wages); Marin County, California (91.1% of typical wages); San Luis Obispo County, California (89.7% of typical wages); Orange County, California (88.1% of typical wages); Queens County, New York (75.3% of wages); Nassau County, New York (72.1% of wages); and Los Angeles County, California (66% of wages).
In a hopeful light at the end of the tunnel, ATTOM noted in the report that in the year between Q1 2025 and Q1 2026 there has been a shift in wage growth, starting to outpace home prices in some counties.
Specifically, typical wages grew faster than home prices in 64% (374) of the 580 counties. The most populous counties this occurred in were Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and San Diego County, California—aka, many of the most unaffordable counties.
Also on the more positive side, there were many counties where homeownership was considered affordable, largely in the South or Midwest.
The most populous counties where homeownership would be considered affordable were Cook County, Illinois (home expenses required 25.1% of wages); Harris County, Texas (21.2% of wages); Dallas County, Texas (26.5% of wages); Bexar County, Texas (27.3% of wages); and Philadelphia County, Pennsylvania (17.3% of wages).
