According to ATTOM’s Q2 2025 Home Affordability Report, 78% of U.S. counties are now considered unaffordable for the average wage earner. Between rising home prices and still-high interest rates, the typical homebuyer must now spend 33.7% of their income on homeownership costs—far above the 28% affordability benchmark used by most lenders.

It’s the 14th consecutive quarter of above-average affordability strain. While this isn’t triggering a crash, it is reshaping demand—and creating real opportunity for REO professionals who are ready to help buyers navigate the new math of homeownership.

There are regional exceptions, the big picture is clear: homeownership is outpacing income growth—and the strain is widening.

• Q2 2025 Median Home Price: $369,000
• Average 30-Year Fixed Rate: 6.82%
• Ownership Costs as % of Income (National): 33.7%

HEATMAP SNAPSHOT: Affordability Pressure Points

Most Unaffordable Markets

These counties are seeing home prices and income gaps reach critical highs, pushing affordability further out of reach for many buyers:

• Orange County, CA (Los Angeles metro)
• Kings County, NY (Brooklyn)
• Travis County, TX (Austin)
• Fulton County, GA (Atlanta)
• Clark County, NV (Las Vegas)
• Honolulu County, HI (Oahu)
• San Diego County, CA
• Marin County, CA (Bay Area)
• Multnomah County, OR (Portland)
• Denver County, CO

Surprisingly Affordable Counties

Despite national trends, these markets remain relatively accessible — offering better price-to-income ratios and potential opportunity for buyers and investors:

• Wayne County, MI (Detroit)
• Cuyahoga County, OH (Cleveland)
• Harris County, TX (Houston)
• Allegheny County, PA (Pittsburgh)
• Bexar County, TX (San Antonio)
• Shelby County, TN (Memphis)
• Marion County, IN (Indianapolis)
• Franklin County, OH (Columbus)
• St. Louis County, MO
• Milwaukee County, WI

(Source: ATTOM Data Solutions – Q2 2025 Home Affordability Report)

Bottom Line

Affordability may be strained—but buyers are still out there, and many REO opportunities fit the profile they’re seeking. Agents who understand how to pair property with lending strategy will have a competitive edge.

High costs are sidelining many would-be buyers—but they’re not giving up. Instead, they’re looking for lower-cost inventory, non-traditional financing, and agents who can help them think creatively. That’s where you come in.

In this market, expertise isn’t optional—it’s what turns uncertainty into closings.

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