:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1449092908-e0ce4ffdb3db4e9ea91ad88a60582569.jpg)
Key Takeaways
- Housing costs in 99% of U.S. counties remain above their historical averages, according to a report from real estate data firm ATTOM.
- San Francisco is a rare exception: Despite a $1.4 million median home price, the city is now more affordable, historically speaking, because local wages have risen faster than housing costs.
- Nationally, 86% of counties saw affordability improve in the fourth quarter of 2025 over the previous quarter, a sign that the market may be stabilizing.
Is the housing market on the verge of a turnaround? Data from one of the country’s most expensive markets suggest the affordability crisis may have peaked.
A new report from real estate data firm ATTOM found that in all but eight of 594 U.S. counties, median-priced homes in the fourth quarter were less affordable than their historical averages. San Francisco was among the exceptions.
Despite a median price of $1.4 million, wages in the city have risen enough that buying a home now consumes a smaller share of income than it has historically.
Buying a home in San Francisco still requires about 50% of the median income—well above what experts recommend—but that’s down from a historical average of 59% and far below the 84% it took in 2006, according to ATTOM’s data.
Why This Matters to You
Improving affordability means lower monthly payments and more breathing room for buyers who’ve been priced out. If the trend continues, it could also bring more homes onto the market as current owners feel less trapped by their low-rate mortgages.
Nearby San Mateo County also improved in housing affordability. Other counties where housing affordability was better in the fourth quarter than its historic trend included Mobile County, Alabama; Kanawha County, West Virginia; and Fayette County, Pennsylvania.
Housing affordability across the nation remains a significant problem due to high borrowing costs and housing prices.
Affordability Improving Across the U.S.
While only a handful of U.S. counties were more affordable than their historic average, 86% of U.S. counties grew more affordable over the previous quarter, according to ATTOM, showing some relief on prices in the housing market.
“Modest, quarter-over-quarter affordability improvements in many markets at the end of the year offered some encouragement,” said Rob Barber, CEO of ATTOM. “Over the past five years, home price growth has nearly doubled wage growth, meaning homebuying power in 2026 will depend not only on whether prices level off or decline, but also on mortgage rates and broader economic conditions.”
Still, affordability remains a central issue in the housing market. In nearly 75% of counties, including San Francisco, buying a home costs more than the recommended 28% of income.
