IRVINE, CA — ATTOM’s newly released 2025 Rental Affordability Report reveals that owning a home is more affordable than renting a three-bedroom property in the majority of U.S. markets, despite rising home prices. The report analyzed 341 counties nationwide and found that homeownership costs typically consume a smaller portion of average wages compared to rents in nearly 60% of the regions studied.
However, both homeownership and renting remain costly for average U.S. workers, often requiring 25% to 60% of their wages. The affordability landscape varies significantly by region, with ownership being the more attainable choice in the Midwest and South, while renting remains the preferable option in the West.
“Buying or renting a home in the U.S. these days can be like searching for a diamond in a pile of marbles, and it’s only getting worse in most markets as the cost of both goes up,” said Rob Barber, CEO of ATTOM. “However, in most parts of the country, homeownership is somewhat more attainable for those who can gather the necessary resources to cover down payments that often surpass $200,000.”
Key Trends and Regional Disparities
The analysis shows that median home prices climbed at a faster rate than rents in two-thirds of the counties studied, reflecting broader price pressures in the housing market. Significant affordability gaps favoring homeownership were identified in places like Suffolk County, NY, where ownership expenses require 59% of average wages compared to 159% for rents.
The Midwest emerges as the most affordable region for buying, with markets such as Wayne County, MI, and Jefferson County, AL, seeing homeownership costs fall below 20% of wages. Conversely, in the West, renting is more affordable in 80% of counties, driven by steep home prices in areas like Alameda County, CA, and Honolulu County, HI.
Affordability Challenges Persist
The least affordable markets for homeowners, such as Orange County, CA, and Kings County, NY, require over 100% of average local wages for major homeownership expenses. Meanwhile, rentals in high-demand areas like Suffolk County, NY, and Collier County, FL, can consume more than 125% of average incomes.
Wage growth has generally outpaced rent increases in nearly three-quarters of the counties analyzed, providing some relief for tenants. However, rising mortgage rates and the increasing gap between wages and home prices continue to challenge both renters and prospective buyers.
Looking Ahead
ATTOM’s findings highlight the complexity of the U.S. housing market, with affordability being a persistent issue in many regions. While homeownership remains the more viable option in most markets, barriers such as high down payments and mortgage rates could deter many. The industry will need innovative solutions as it confronts ongoing challenges in housing accessibility and affordability in 2025 and beyond.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.