Improving Rural Housing Affordability to Increase Economic Stability

Access to affordable housing is a challenge in many rural communities, due to multiple factors, including low incomes, high poverty, and barriers to development. Approaches for improving rural housing affordability focus on affordable housing development, affordable rental housing, and reducing homelessness. Some programs implementing these approaches may provide subsidized housing for residents directly or help people secure permanent, affordable housing.

To increase the supply of affordable housing, rural communities are using the following manufacturing and construction strategies:

• Modular building, also called modular construction, focuses on building sections of a home offsite, often in pieces, then assembling them onsite by a construction team. This method increases efficiency, reduces overall construction time, enhances worker safety, and lowers the construction costs per unit.
• New Building and Construction Technology, such as 3D concrete printing, can quickly improve the supply of affordable housing by reducing construction risks, reducing resource use, and creating less waste. Some states, such as Texas, are trying out this technology to address housing demand.
• Mutual Self-Help Housing allows families to contribute "sweat equity" toward building their home, while working with nonprofit organizations and construction experts. Mutual self-help housing grants are funded by the USDA. This approach reduces the financial capital necessary for building housing.

Additional strategies to develop affordable housing in rural communities, including for purchase or rent, include:

• Amending or creating local laws and policies to change zoning restrictions
• Creating mixed-use developments
• Developing multi-family housing
• Repurposing abandoned or underused buildings for affordable housing
• Using federal assistance to offset costs of home renovations, provide loans, and offer rental assistance

Homelessness in rural areas is also a growing concern. Approximately 18% of homeless individuals in the U.S. live in rural areas, and many rural individuals are at risk of becoming homeless. Risk of rural homelessness is due to complex factors including lack of affordable housing, limited economic opportunities, substance use disorder, and mental health challenges.

Addressing rural homelessness requires targeted strategies that may go beyond housing development, including wraparound services and community engagement. Strategies to address rising rates of rural homelessness include:

• Developing partnerships among health and social service providers and organizations working to end homelessness to provide more support services
• Expanding local outreach to help identify homeless populations and connect them with care
• Involving local leaders and champions, especially faith-based organizations

Housing quality is also an important SDOH. For more information about poor housing conditions and associated health impacts see Housing Quality Approaches.

Examples of Rural Programs That Focus on Improving Housing Affordability

• CASA of Oregon was founded in response to the housing needs of migrant, seasonal, and year-round farmworkers and their families. CASA of Oregon primarily serves the farmworker community and has expanded to develop housing in other rural communities throughout Oregon. CASA of Oregon operates a Manufactured Housing Cooperative Development Center. This program has helped homeowners in 15 communities to purchase their communities and operate them as Resident Owned Cooperatives (ROC).
• DreamBuild, formerly known as MiCASiTA, is an innovative approach to constructing and financing new, durable modular housing in Brownsville, TX. They are customizable to the needs of the individual or family and are built without special machines or 3D printing. Individuals who purchase a home are making an investment in themselves by building equity through the homeownership process and sustainable financing processes.
• Rural Alaska Community Action Program, Inc. (RurAL CAP) is a nonprofit organization in Alaska empowering people with low incomes by providing advocacy, education, affordable housing, and direct services. RurAL CAP operates many housing programs in Alaska to address SDOH. The Planning and Construction Division of RurAL CAP helps improve housing affordability and quality and also helps weatherize homes around the state. They operate a Mutual Self-Help Housing Program that provides affordable housing to Alaskans, including help for low-income families and first-time homebuyers. RurAL CAP's Supportive Housing Division provides affordable rental housing opportunities for people with low incomes and limited credit histories, those experiencing homelessness, people living with several mental illnesses, and people with a substance use disorder.
• Open Doors Homeless Coalition focused on ending homelessness for veterans in the Mississippi Gulf Coast. Through a multi-county partnership, leaders in the region have helped reduce the number of people experiencing homelessness by connecting people with housing and providing wraparound services. Open Doors Homeless Coalition acted as the convener, bringing partners together to address veterans' complex issues. Veterans were also connected with transportation and social services to help address other needs.

Considerations for Implementation

Implementing programs to address housing affordability can be challenging in any location, but rural areas provide several unique considerations. Location is one important aspect of affordable housing. In rural communities, housing should be developed within walking distance to community necessities including jobs, grocery stores, and schools. Ensuring access to these resources and services helps address SDOH, for example, for individuals who do not have access to personal vehicles or other forms of reliable transportation.

There are also several considerations for programs seeking to prevent or address rural homelessness. First, although rural people do experience homelessness or live in substandard housing that they struggle to afford, rural homeless populations can be harder to identify. Homeless shelters are more limited in rural areas, which may lead people to seek shelter outdoors or in indoor places that are not safe for living. People may resort to sleeping in open fields, abandoned buildings, or vehicles hidden from plain sight.

Second, rural areas may offer limited affordable housing options, putting more people at risk of homelessness. The types of houses available to rent or buy may be older, and there are more manufactured homes, like mobile homes and trailers. Historically, manufactured homes offered a more affordable option for many rural residents. Still, increases in lot rents on the land can make it unaffordable for people to stay in their homes.

Third, limited transportation access in rural communities can contribute to a person's inability to secure and retain a job, which is a risk factor for homelessness. A lack of transportation also limits the ability of individuals to connect with community resources and housing. In addition, limited access to healthcare services for treating chronic illnesses or substance use disorders can contribute to homelessness. People with substance use disorder may experience unemployment and hospitalization, and they may lack the resources and support services to pay for medical expenses and afford housing costs.

Program Clearinghouse Examples

• CASA of Oregon
• RurAL CAP

Resources to Learn More

Affordable Housing: Toolkit for Counties
Document
This toolkit offers evidence-based solutions for rural county leadership in four distinct domains, building on data from the National Association of Counties (NACo) Futures Lab.
Organization(s): National Association of Counties (NACo)
Date: 2019

Providing Well-Placed Affordable Housing in Rural Communities
Document
This toolkit shares information on strategies rural communities are using to increase access to affordable housing.
Organization(s): Smart Growth America
Date: 4/2017

Single Family Housing Programs
Website
Shares links to housing programs funded by the federal government, including information and resources for homebuyers, homeowners, lending partners, and agencies and organizations.
Organization(s): U.S. Department of Agriculture (USDA) Rural Development