U.S. Home Affordability Deteriorates Further in Q1 2026
Event summary
- 97% of analyzed U.S. counties saw homes less affordable than historical averages in Q1 2026, a slight improvement from 98% in Q4 2025.
- National median home price rose 8% since Q1 2024 to $360,000, while average weekly wages increased 6.4% through Q3 2025.
- Mortgage rates rose to 6.22% in March 2026 after hitting 5.98% in February, the lowest since 2022.
- In 69.1% of counties, major monthly home expenses exceeded 28% of typical resident's wages, making ownership unaffordable by standard guidelines.
- California and New York counties dominated the least affordable markets, with Kings County, NY requiring 108.6% of typical wages for home expenses.
The big picture
The Q1 2026 U.S. Home Affordability Report highlights the persistent challenge of home affordability, with 97% of counties remaining less affordable than historical averages. While wage growth has outpaced home price increases in many counties, rising mortgage rates and economic volatility pose additional pressures on prospective homebuyers. The data underscores the ongoing tension between housing demand and economic realities, particularly in high-cost markets like California and New York.
What we're watching
- Economic Sensitivity
- How rising mortgage rates and geopolitical concerns will affect home purchasing power and affordability trends.
- Regional Disparities
- Whether wage growth in certain counties can sustain affordability improvements amid rising home prices.
- Market Stabilization
- The pace at which home price growth moderates and whether it aligns with wage increases to improve affordability.
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