Home prices have been rising faster than paychecks nationwide—but that trend hasn’t played out evenly across the country.
Since the first quarter of 2024, the national median home price has risen 8% from $333,438 to $360,000, according to the latest data from ATTOM, a provider of property data and real estate analytics.
But wages actually outpaced home growth in many counties, ATTOM reports.
“It is a welcome shift that wages are growing faster than home prices in these markets,” says Jiayi Xu, economist at Realtor.com®. “While the affordability gap remains a challenge, this trend is a powerful tool for potential buyers.”
Between the first quarter of 2025 and the first quarter of 2026, typical wages grew faster than home prices in 64% (374) of the 580 counties in ATTOM’s analysis.
But the most populous counties where wages outpaced home prices were Los Angeles County; Cook County, IL; Harris County, TX; Maricopa County, AZ; and San Diego County.
“In these five counties, top-tier universities act as ‘talent magnets’ that fuel high-wage industries like biotech, aerospace, and finance,” says Xu.
“By providing a steady stream of highly skilled graduates, schools like UCLA and USC (Los Angeles), the University of Chicago and Northwestern (Cook), Rice and the University of Houston (Harris), ASU (Maricopa), and UC San Diego (San Diego) attract global corporations that cluster nearby to tap into specialized research and a ‘knowledge-ready’ workforce.”
Xu says this influx of high-earning professionals doesn’t just boost the tech and medical sectors. “It also sparks massive demand for roles across the entire economy—making these regions some of the most dynamic and competitive labor markets in the country,” she adds.
Average weekly wages have increased 6.4%, according to the Bureau of Labor Statistics‘ latest data, which runs through the third quarter of 2025.
Higher paychecks act as an “accelerator” for down payment savings, allowing people to reach homeownership faster, Xu explains.
“More importantly, a larger income provides vital ‘debt-to-income’ (DTI) flexibility,” she explains. “Even if mortgage rates don’t drop drastically, having more room in the budget makes it much easier to qualify for a loan without ‘stretching’ every penny.”
Xu says this extra financial breathing room gives potential buyers more leverage to negotiate, more options to choose from, and more confidence in the buying decision.
More about top counties
Below, we take a closer look at the five most populous counties where wages are outpacing home prices.
In Los Angeles County, the median home price in Q1 2026 stood at $879,000—down 1.5% from a year ago—while wages climbed 3.0% over the same period.
Jameson Tyler Drew, president of Anubis Properties in the Los Angeles area, tells Realtor.com, “We have a sprawling entertainment industry, along with strong industries like aircraft manufacturing and private spaceflight companies.”
However, workers still need to spend 66% of annualized wages to buy a median-priced home there. “With an average home price hovering near $900,000, the mortgage payment and tax burdens aren’t even remotely sustainable for a family trying to start a life,” says Drew.
But Juliette Hohnen with Douglas Elliman in Los Angeles tells Realtor.com that rising wages relative to home prices should draw more buyers to the market. “Well-priced homes that don’t need work are selling, and homes that are slightly underpriced are being snapped up,” she adds.
In Cook County, the median home price in Q1 2026 reached $305,000, a 2.7% year-over-year increase, yet wages outpaced that growth, rising 4.6% in the same time frame—stimulating the real estate market.
“It’s probably the best market we’ve seen in downtown Chicago in five or six years,” says Matt Laricy, managing broker at Americorp Real Estate in Chicago. “Many of the people who moved during the [COVID-19] pandemic are coming back home. A lot of people are moving from Florida, saying they’ll take snow over hurricanes any day. The suburbs are getting richer, and the inventory is getting slimmer, so bidding wars are common there.”
In Harris County, the median home price in Q1 2026 came in at $293,750, reflecting a 3.7% year-over-year drop, even as wages moved in the opposite direction, growing 3.3%.
“With the strong job market here, I predict the Houston real estate market will continue to thrive,” Heather Shepherd, a real estate agent with Douglas Elliman in Houston, tells Realtor.com.
In San Diego County, the median home price in Q1 2026 was $875,250, slipping 1.7% from the prior year, while wages gained 3.9% over that same period.
San Diego boasts a highly diversified economy anchored by its massive military and defense presence, world-class biotechnology sector, and thriving tech industry.
In Maricopa County, the median home price in Q1 2026 was $460,000, down 2.9% year over year, while wages grew 4.5% during the same stretch.
“Phoenix has a hot job market,” Phoenix real estate agent Stacy Miller of Re/Max Fine Properties tells Realtor.com. “A lot of tech-based companies from California, other states, and even overseas have moved their offices and warehouses to Maricopa County. We are the hub of many tech companies like Axon, GoDaddy, Honeywell, American Express, Amazon, and Onsemi, to name a few.”
