The Housing Affordability Crisis Is Accelerating Fastest in Rural America

Core Insights - The housing affordability crisis is accelerating, particularly in rural America, where the income needed to afford a median-priced home has surged by 105.8% since before the pandemic [1][2][9] Summary by Category Housing Affordability - Homebuyers in rural U.S. counties now need an annual income of $74,508 to afford a median-priced home, compared to $36,206 before the pandemic [1][9] - The income required to afford homes has also increased significantly in suburban (90.9%) and urban (87.5%) areas, but rural areas have seen the steepest rise [2][9] Home Prices - The median sale price of homes in rural counties is $280,900, reflecting a 60.5% increase from $175,000 pre-pandemic [4][9] - Suburban counties have experienced a 48.9% increase in median home prices, while urban areas have seen a 46.2% rise [4][9] Income Growth - The median household income in rural counties has increased by 33.3% to $69,307, which is lower than the increases seen in suburban (36.8%) and urban (39.3%) areas [5][9] - This disparity in income growth versus home price increases has contributed to the erosion of affordability in rural areas [2][5] Market Dynamics - The pandemic prompted many buyers to move from urban to rural areas, driving up demand and home prices in these regions [6][10] - Rural areas still attract homebuyers due to relatively lower prices compared to suburban and urban areas, despite the recent price increases [10][11] Regional Insights - New Hampshire has seen the largest increase in income needed to afford a rural home, with a 141.4% rise to $119,361 [13] - The median rural home sale price in New Hampshire has increased by 88.3%, the highest among states analyzed [14]