In five counties in California and New York, homeowners must spend almost 100 percent of their wages on monthly housing costs.
Despite President Donald Trump's promise to restore the American dream and end the ongoing housing affordability crisis, homeownership remained vastly unaffordable in the first quarter of 2026, according to a new report by ATTOM, a provider of property data and real estate analytics.
than historical averages in 97 percent of counties with sufficient data analyzed between January and March, with New York, California, New Jersey and Hawaii dominating a list of the counties where major monthly home expenses consumed the greatest share of residents' wages.Housing costs are placing a significant strain on U.S. homeowners, while years of rising home prices and historically high mortgage rates have put the goal of purchasing a property out of reach for many Americans. According to ATTOM, a buyer in the first quarter of 2026 would have had to earn $84,230 per year to afford a nationally medium-priced home and keep major monthly expenses below the 28 percent of wages threshold, which is considered affordable. But in some counties, buyers face much steeper income requirements and much higher costs.Major monthly expenses for median-priced single-family homes and condominiums nationwide exceeded historic norms in 560 out of the 580 counties analyzed by ATTOM, researchers concluded. It is not surprising that some of the most expensive states in the country—on the East and West Coasts, respectively—are home to the counties where homeowners spend the biggest share of their wages to cover monthly home expenses. Fourteen of the 25 counties where major monthly home expenses consumed the greatest share of residents' wages were in California, according to ATTOM, four were in New York, three were in New Jersey, and two were in Hawaii. These were Kings County, New York ; Santa Cruz County, California ; Marin County, California ; San Luis Obispo County, California ; and Orange County, California . Researchers obtained this list by calculating the amount of income needed to meet major monthly home ownership expenses, such as mortgage payments, mortgage insurance, property taxes and homeowner's insurance, on a median-priced single-family home and condo, assuming a 20 percent down payment and a 28 percent maximum front-end debt-to-income ratio. According to this rationale, major monthly home expenses exceeded 28 percent of the typical resident's wages in 69.1 percent of the counties analyzed, meaning"Over the last several years, wages haven't kept up with rising home prices in many markets. 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.""Persistent supply constraints continue to drive valuations across California and New York City–adjacent counties. Years of underbuilding, coupled with concentrated demand from high-output sectors like tech, finance, and health care, have created a structural supply-demand imbalance that keeps price points elevated and out of reach for many buyers."For homeowners struggling with high housing costs, there is good news: according to ATTOM, wage growth outpaced home prices in a majority of the counties analyzed, suggesting that affordability is bound to be improving, even if modestly.by the recent data, the first quarter of the year offered an improvement compared to the previous quarter, when median-priced homes were less affordable than their historical averages in 98 percent of all counties analyzed, or 567 out of 580 counties., ours is different: The Courageous Center—it's not"both sides," it's sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you., you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations.Opinion
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