Hidden Costs and High Rates Drive US Home Unaffordability
Rising maintenance costs and mortgage rates have made homes less affordable than historical averages in 98% of US counties.
Homeownership in the United States has reached a critical affordability crisis driven by high mortgage rates and escalating maintenance expenses. Data from ATTOM shows that homes were less affordable than historical averages in 98% of U.S. counties during the third quarter of 2026. While the national median home price saw a slight dip to $368,000, the benefit was negated by 30-year fixed mortgage rates climbing to 7.3%.
Beyond mortgage payments, homeowners face significant hidden costs. A joint analysis by Zillow and Thumbtack found that the average homeowner now spends $16,566 annually on property taxes, maintenance, and insurance, marking a 32% increase over five years. Homeowners insurance premiums have been the primary driver of this trend, surging 54% due to extreme weather and increased labor and material costs.
Industry experts disagree on the exact income threshold required to enter the market. ATTOM estimates an annual income of $90,191 is necessary to meet affordability guidelines, whereas Redfin analysis suggests the requirement is closer to $110,000 for a median-priced home.
