"Financing challenges unique to rural areas pursuing affordable housing development exacerbate a growing imbalance. A new Redfin study notes that home prices in rural communities have increased faster than those in urban and suburban areas since the pandemic. Rural homebuyers now need to earn $75,000 to afford the typical home, more than twice the $36,000 required before the pandemic. The median home sale price in rural areas is up 61% since the days before the pandemic, compared with 46% in urban areas."
"During the same period, the median household income in rural areas increased by only 33%, compared with 37% in suburban areas and 39% in urban areas. This begs a couple of questions. How can we build more quality, affordable housing in rural areas? And what potential solutions are in place to increase homeownership? A panel from the National Housing Conference's Solutions for Affordable Housing met last week to address these questions."
Home prices in rural communities have risen faster than in urban and suburban areas since the pandemic, with the median rural sale price up 61%. Rural buyers now need about $75,000 in annual income to afford a typical home, more than double pre-pandemic requirements. Median household income in rural areas rose only 33%, widening the affordability gap. Financing affordable housing in rural areas faces unique hurdles, including limited capital, labor shortages, and greater economic volatility. Large employer closures can rapidly devastate rural economies and housing demand. Expanding financing options, targeted policies, and programs to boost homeownership are needed to address the imbalance.
Read at www.housingwire.com
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