Homes Cost Nearly 100% of Wages in Top Markets

New report reveals major housing affordability crisis in California and New York counties

Mar. 27, 2026 at 2:48pm

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A new report from ATTOM found that in five counties in California and New York, homeowners must spend almost 100 percent of their wages on monthly housing costs. The report analyzed 580 counties and found that homes were less affordable than historical averages in 97 percent of them, with New York, California, New Jersey and Hawaii dominating the list of the counties where major monthly home expenses consumed the greatest share of residents' wages.

Why it matters

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. This report highlights the growing affordability crisis, especially in high-cost coastal markets.

The details

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. However, in some counties, buyers face much steeper income requirements and much higher costs. Fourteen of the 25 counties where major monthly home expenses consumed the greatest share of residents' wages were in California, four were in New York, three were in New Jersey, and two were in Hawaii.

  • The report analyzed data from January to March 2026.

The players

ATTOM

A provider of property data and real estate analytics that conducted the report on housing affordability.

Rob Barber

The CEO of ATTOM.

Anthony Smith

A senior economist at Realtor.com.

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What they’re saying

“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.”

— Rob Barber, CEO, ATTOM

“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.”

— Anthony Smith, Senior Economist, Realtor.com

What’s next

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.

The takeaway

This report highlights the growing housing affordability crisis, especially in high-cost coastal markets like California and New York, where homeowners must spend nearly 100 percent of their wages on monthly housing costs. The findings underscore the need for solutions to address the supply-demand imbalance and make homeownership more accessible for a wider range of buyers.