The cost of country living keeps climbing.
Statistics from real estate company Redfin show rural communities are struggling the most with housing affordability following the COVID-19 pandemic.
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In rural America, median home prices between the third quarter of 2019 and the third quarter of 2025 increased an average of 61.5% to $280,900. Despite this jump, the median household income in these communities is only up 33.3% over the same period (from $52,002 to $69,307).
Using the traditional 30% rule — which suggests spending no more than 30% of gross income on housing — Redfin used median home sale price data, prevailing mortgage rates and property-tax payments to calculate that rural homebuyers now need an above-average income of $74,508 to keep up with the monthly cost of paying for a house.
Before the pandemic, this estimated income was only $36,206, representing a 105.8% spike (1).
Although housing costs surged in suburban and urban areas, rural America has unique vulnerabilities that contributed to a more challenging environment.
Remote work, rural price shock
Why is the housing crisis so pronounced in rural America?
For starters, Redfin’s analysts point to the combined forces of low mortgage rates and the possibility of remote work during the height of the COVID-19 pandemic.
According to Brookings, net migration out of major urban areas like New York and Los Angeles rose between 2020 and 2021, especially high earners, with many looking for a rural home (2).
Redfin points out that these homebuyers had big budgets. So, whether they wanted a remote work retreat or a second home, out-of-state competition easily outbid locals and drove up prices.
Another factor contributing to the rise in rural real estate is the relatively low supply. There hasn’t been nearly enough new development in the region to keep pace with this surge in demand.
According to the Council of Economic Advisers, 9.4% of houses in rural regions were five years old or newer in 2000. That dropped to just 2.9% in 2023 (3).
Demographics could also play a role in housing affordability’s impact on rural regions.
According to the Federal Housing Finance Agency, a comparatively larger percentage of the population (19.2%) in rural communities is over 65, as opposed to 15.7 percent in non-rural areas (4).
Since more homeowners in rural regions are either at or near retirement age, there’s a greater chance they will stay in their homes longer, further reducing turnover and available inventory. Combined with lower income growth among retirees, this could create a tighter market for younger families trying to buy locally.
With all of these data points, it’s not surprising that more rural residents fit the definition of “cost-burdened,” or spending over 30% of income on housing.
According to Pew research data one third of rural renters now fit this criterion (5). A University of Minnesota study found that one-quarter of rural households overall are cost-burdened (6).
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Is it worth it to buy a home in rural America?
Even though the pandemic boom is over, buying a house in America is hardly getting easier.
In fact, the National Association of Realtors reported that the median age of first-time homebuyers is at a record high of 40 (7).
Despite these higher prices, buying a home is still possible. It just takes extra patience, planning, and persistence.
The most essential step in this process is to be clear on your current financial situation and how much you could realistically afford to pay for a home.
To simplify this task, you can use a free tool like the Maximum Mortgage Calculator. Here, you can input details on your monthly income, liabilities, and housing expenses to see the highest mortgage you could afford right now.
After getting a sense of where you currently stand, toggle different metrics to see how adjusting certain expenses or a change in income could increase or decrease your max mortgage.
With this info, you could take a closer look at your monthly cash flow in a money management app and consider making adjustments to get closer to the loan amount you’re eyeing.
It also helps to stay up-to-date on the latest trends in real estate for the counties where you’re most interested in buying.
For instance, most counties post planning, zoning, and property information online. Look for sections labeled “Planning & Zoning,” “Board of Realtors,” or “Property Records” for any details on new developments.
If new homebuyers are in a hurry to get a new home, they could also consider whether the costs to refresh a “fixer-upper” would be worth the effort. Just keep in mind that many people with home renovation run into unexpected costs for these projects.
Lastly, don’t forget about assistance programs, such as USDA loans (8) and state-level rural homeownership grants through state housing finance agencies, which can offer lower down payments or better financing terms (9).
Even though rural America isn’t a bargain, careful budgeting and staying informed on local market trends put you in a competitive position to capitalize on opportunities.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Redfin (1); Brookings (2); Council of Economic Advisers (3); FHFA (4); Pew (5); University of Minnesota (6); National Association of Realtors (7); USDA (8); USDA (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.