A new report from Redfin, a technology-driven real estate company, indicates that the income required to afford a median-priced home in rural U.
S. counties has more than doubled since before the pandemic. Homebuyers now need an annual income of $74,508, marking a 105.8% increase from the $36,206 required in Q3 2019. This acceleration in affordability erosion in rural areas surpasses that seen in suburban and urban markets.
The analysis, conducted by Redfin and comparing the third quarter of 2025 with the third quarter of 2019, shows that the income needed for a home in suburban counties rose 90.9% to $102,120, while urban counties saw an 87.5% increase to $118,300. Redfin defines an affordable home as one where a buyer’s mortgage payment constitutes no more than 30% of their income. The report integrated MLS median home sale price data, prevailing mortgage rates, property tax payments, and U.
S. Census Bureau income data.
The significant increase in required income for rural homebuyers is primarily attributed to rapidly rising home prices. The median sale price in rural counties reached $280,900, a 60.5% jump from $175,000 before the pandemic. In contrast, suburban counties experienced a 48.9% increase to $385,000, and urban counties saw a 46.2% gain to $446,000.
Simultaneously, income growth in rural areas has lagged behind the escalating housing costs. The median household income in rural counties is currently $69,307, representing a 33.3% increase from $52,002 pre-pandemic. Suburban counties observed a 36.8% gain to $88,627, and urban counties recorded a 39.3% gain to $89,784.
The pandemic era saw a migration of Americans from urban centers to rural and suburban regions, driven by the search for space, privacy, and lower living costs, often facilitated by remote work and record-low mortgage rates. This surge in demand in rural and suburban areas led to soaring home prices and intensified competition, with many rural markets having limited housing inventory. “During the pandemic, many buyers came to New Hampshire from out of state—places like New York, Texas, California, and Seattle. They often had larger budgets than locals and were able to pay above the asking price, which helped them win bidding wars and purchase properties in the Lakes Region,” stated Julia Martinage, a Redfin Premier real estate agent in New Hampshire.
Despite the rapid appreciation, rural areas generally remain more affordable compared to their suburban and urban counterparts, which continues to attract homebuyers. A household with the median income in rural counties would need to allocate 32.3% of their earnings to housing for a median-priced home, up from 20.9% pre-pandemic. This figure is lower than in suburban counties (34.6%) and urban counties (39.5%). Asad Khan, Redfin Senior Economist, noted, “Rural America isn’t as affordable as it once was, but the silver lining is that unlike many urban areas, there’s still room to build homes. Adding more housing can ease the affordability crunch and also make room for more people, which can boost local economies.”
Some state governments are addressing rural housing shortages through construction initiatives. New York, for instance, has allocated $50 million to a program focused on building manufactured housing, which typically offers a more cost-effective and quicker construction timeline.
Among the states analyzed, rural New Hampshire experienced the largest increase in the income required to afford a home, climbing 141.4% to $119,361 annually. This was followed by Vermont, with a 139.2% increase, and Maine, with a 137.3% increase. These states also saw the highest rises in rural home prices, with New Hampshire’s median rural home sale price up 88.3%, Vermont’s up 86.6%, and Maine’s up 85.1% since before the pandemic.
