ATTOM data showed 2025 prices at new highs while margins and access narrowed
Home prices in the United States climbed to new records in 2025, even as profit margins compressed and access to homeownership grew more uneven between cash-rich buyers and households dependent on financing, according to ATTOM’s latest year‑end sales report.
ATTOM found about 3.9 million homes changed hands last year, with the national median sale price rising to $360,000, up 2.6% from 2024 and 39% above 2020. Typical gross profit slipped to $118,710, representing a 49% return, down from a 55% margin in 2024.
“Home prices kept climbing in 2025 even as affordability challenges intensified for households across the country,” Rob Barber, CEO of ATTOM, said.
“While sellers continued to command record prices, profit margins have been declining for three consecutive years since peaking in 2022, suggesting the market may be gradually normalizing after a period of strong returns.”
Barber added that “recent declines in mortgage rates likely provided some relief for prospective buyers, but with prices at record highs and ownership tenures stretching longer, that relief may be limited.”
Sun Belt profits retreated as Midwest pulled ahead
Median prices were higher in more than three‑quarters of the 133 metros analyzed, with some of the steepest gains in Birmingham, AL (up 12.9%), Syracuse, NY (11.6%), Toledo, OH (10.4%), Rochester, NY (10.3%) and Dayton, OH (10.3%).
Among metros over 1 million people, Birmingham and Rochester stood out alongside Detroit, MI (8.5%), Tulsa, OK (8.2%) and Kansas City, MO (8.1%).
At the same time, Florida and parts of California bore the brunt of price and margin compression. North Port, FL saw median prices fall 9%, while Deltona, FL dropped 5.4% and Stockton, CA 4.7%.
Profit margins fell in 87.7% of the 130 metros with sufficient data, led by North Port, FL (down 24 percentage points to 45%), Cape Coral, FL (down 22 points to 56%) and Deltona, FL (down 22 points to 51%).
By contrast, typical margins improved modestly in several Midwest markets, including Canton, OH (up 5 percentage points to 54%), Akron, OH (up 3 points to 59%) and Chicago, IL (up 2 points to 47%).
Institutional buyers, cash and tenure reshaped local markets
Institutional investors bought 6.6% of all US homes for the second straight year, with concentrations near or above 9% in Tennessee and Texas (9.2%), Missouri (9.1%) and Indiana (9%).
At the metro level, investor activity was highest in Memphis, TN (14.8% of sales), Huntsville, AL (11.9%), Fayetteville, NC (11.4%), Birmingham, AL (11.2%) and Dallas, TX (11.1%).
All‑cash purchases remained a defining feature in many markets. Nationally, 39.1% of 2025 sales were cash – the highest share since 2013 – with Naples, FL (61.9%), Montgomery, AL (59.9%) and Hilo, HI (58.8%) among the most cash‑heavy metros.
Ownership tenures reached record highs, averaging 8.55 years for homes sold in Q4 2025. In Barnstable, MA and several Connecticut and Massachusetts metros, average tenure exceeded 13 years.
Affordability strain despite rate relief
Even as rates eased from 2024 peaks, affordability remained strained in many markets. In October, ICE Mortgage Monitor data showed mortgage affordability at a 2.5‑year high, yet the payment on an average‑priced home still absorbed 30% of median income.
“We’re seeing affordability at a 2.5‑year high, which is beginning to bolster purchase demand,” Andy Walden, head of mortgage and housing market research at ICE, said.
Industry executives highlighted lock‑in effect and elevated prices as key headwinds. “I think the combination of higher rates and how much prices have gone up is what makes it a little bit difficult for people,” Dan Sogorka, general manager at Rocket Pro, previously told Mortgage Professional America.
Institutional and cash buyers keep their footing
Institutional investors purchased 6.6% of all US homes sold for the second straight year, with concentrations approaching or exceeding 9% in several Southern states.
All‑cash deals also remained elevated. ATTOM reported that cash buyers accounted for 39.1% of 2025 transactions, the highest share since 2013, echoing local trends in markets such as Miami, where all‑cash transactions approached 40% of closed sales.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
