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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 76 April 2025 J O U R N A L more challenging nationwide," said Rob Barber, CEO at ATTOM. "Unless home prices stabilize or more proper- ties become available for sale, this trend is likely to persist in the near future." Over the past year, median sin- gle-family home prices have gone up in about two-thirds of the counties with enough data to review, with increases generally ranging up around 10%. At the same time, typical three-bedroom rents have increased in barely more than half of those areas, with gains mostly topping out at roughly 7%. Where Are the Top Rental Re- turns Located? Counties with the highest potential annual gross rental yields on three-bed- room properties for 2025 include: • Suffolk County, New York, in the New York City metro area (18%) • Atlantic County, New Jersey, in the Atlantic City area (16.8%) • Jefferson County, Alabama, in the Birmingham area (13.6%) • Mobile County, Alabama (12.9%) • Ector County, Texas, in the Odessa area (12.5%) Aside from Suffolk County, the highest potential annual three-bed- room gross rental yields in 2025 among counties with a population of at least one million were reported in: • Wayne County (Detroit), Michigan (10.9%) • Cuyahoga County (Cleveland), Ohio (10.1%) • Allegheny County (Pittsburgh), Penn- sylvania (9.8%) • Cook County (Chicago), Illinois (9.2%) Rental Returns Decrease Nationwide Potential annual three-bedroom gross rental yields for 2025 have gone down compared to 2024 in 57% of the counties analyzed in the report. The biggest drop-offs were reported in: • Litchfield County, Connecticut (out- side Hartford) (yield down from 17.1% in 2024 to 11.7% in 2025) • Champaign County, Illinois (down from 12.5% to 9.3%) • Monroe County (Rochester), New York (down from 12.6% to 9.8%) • Santa Barbara County, California (down from 10% to 7.4%) • Mercer County (Trenton), New Jersey (down from 11.8% to 9.8%) The biggest decreases in potential annual gross rental yields from 2024- 2025 among counties with a population of at least one million are in: • Los Angeles County, California (yield down from 7.1% in 2024 to 6.1% in 2025) • Palm Beach County (West Palm Beach), FL (down from 7.6% to 6.8%) • Wayne County (Detroit), Michigan (down from 11.7% to 10.9%) • Riverside County, California (down from 9.5% to 8.7%) • Allegheny County (Pittsburgh), Pennsylvania (down from 10.4% to 9.8%) Lowest Rental Returns in the West Counties with the lowest poten- tial annual gross returns for 2025 on three-bedroom rentals are: • Santa Clara County, California, in the San Jose metro area (2.9%) • San Mateo County, California, in the San Francisco area (3.3%) • Williamson County, Tennessee, in the Nashville area (3.4%) • Walton County, FL, in the Crest- view-Fort Walton Beach area (3.7%) • Alameda County, California, in the San Francisco area (3.8%) Aside from Santa Clara and Ala- meda counties, the lowest potential annual gross three-bedroom rental yields in 2025 among counties with a population of at least one million are in: • Honolulu County, Hawaii (4.1%) • Fairfax County, Virginia in the Wash- ington, D.C., metro area (4.2%) • Kings County (Brooklyn), New York (4.2%) Wages Rising Faster Than Rents Average wages are growing faster than median three-bedroom rents in 69% of the counties analyzed, including: • Los Angeles County, California • Cook County (Chicago), Illinois • Harris County (Houston), Texas • Maricopa County (Phoenix), Arizona • San Diego County, California Median three-bedroom rents are in- creasing faster than average wages in 31% of the counties measured, including: • Suffolk County, New York (outside New York City) • Franklin County (Columbus), Ohio • Oakland County, Michigan (outside Detroit) • Hennepin County (Minneapolis), Minnesota • Cuyahoga County (Cleveland), Ohio Home Prices Rising Faster Than Rents Median home prices are going up more than median three-bedroom rents in 196 of the 361 counties analyzed (54%), including: • Los Angeles County, California • Cook County (Chicago), Illinois • Maricopa County (Phoenix), Arizona • San Diego County, California • Orange County, California (outside Los Angeles) Median three-bedroom rent prices are rising faster than median home prices in 165 of the counties analyzed (46%), including: • Harris County (Houston), Texas • King County (Seattle), Washington • Santa Clara County (San Jose), California • Sacramento County, California • Philadelphia County, Pennsylvania Average wages are increasing faster than median home prices in 60 percent of the counties analyzed, including: • Harris County (Houston), Texas Continued on page 78