Could the newest figures from San Francisco suggest that housing prices have reached their highest point?

San Francisco Sees Housing Affordability Improve Amid National Struggles

Although most areas across the United States continue to face high housing costs, a recent analysis reveals that San Francisco's home prices have dipped below their usual historical levels.

Photo Credit: Alexander Spatari

Main Insights

• According to real estate analytics firm ATTOM, nearly every county in the U.S.—99%—still has home prices above their long-term averages.
• San Francisco stands out as an exception. Despite a median home price of $1.4 million, the city has become more affordable compared to its history, thanks to local wage growth outpacing increases in housing costs.
• Across the country, 86% of counties experienced improved affordability in the last quarter of 2025 versus the previous quarter, suggesting the market may be stabilizing.

Could the housing market be on the brink of a shift? Data from one of the nation’s priciest cities hints that the worst of the affordability crisis may be behind us.

ATTOM’s latest report found that in all but eight of 594 U.S. counties, homes sold in the fourth quarter were less affordable than their historical norms. San Francisco was among the few exceptions.

Even with a median home price of $1.4 million, rising incomes in San Francisco mean that buyers now spend a smaller portion of their earnings on housing than they have in the past.

Purchasing a home in San Francisco still requires about half of the median household income—well above —but this is an improvement from the historical average of 59%, and a significant drop from the 84% required in 2006, according to ATTOM.

What This Means for Homebuyers

Greater affordability translates to lower monthly payments and increased opportunities for buyers who were previously priced out. If this trend continues, more homeowners may be willing to sell, potentially increasing the number of homes on the market as they feel less locked in by low mortgage rates.

San Mateo County, adjacent to San Francisco, also saw affordability improve. Other counties with better-than-average affordability in the fourth quarter included Mobile County in Alabama, Kanawha County in West Virginia, and Fayette County in Pennsylvania.

Despite these positive signs, remains a major challenge nationwide, largely due to and .

Affordability Trends Across the Country

While only a small number of U.S. counties are more affordable than their historical averages, ATTOM reports that 86% of counties saw affordability improve compared to the previous quarter, indicating some relief for buyers.

“The modest improvements in affordability seen in many markets at the end of the year are encouraging,” said Rob Barber, CEO of ATTOM. “Over the last five years, home prices have grown at nearly twice the rate of wages. Looking ahead to 2026, whether homebuying becomes easier will depend not only on price trends, but also on mortgage rates and the broader economy.”

Nevertheless, affordability remains a pressing concern. In nearly three-quarters of U.S. counties—including San Francisco—homebuyers still spend more than the on housing costs.