Press Releases

Today, the Subcommittee on Housing and Insurance, led by Subcommittee Chairman Mike Flood (NE-01), held a hearing addressing the Committee’s ongoing efforts to address the nation’s housing supply challenges, particularly in rural America.

On the unique challenges of rural housing needs:

• "The problems in the rural parts of our country are a little different than those we see in urban areas. ...While a rural area may have lower land costs, the logistics associated with getting homes built in rural areas can introduce some unique challenges that drive up project costs," said Subcommittee Chairman Mike Flood.

• “Rural America is facing a growing housing crisis, but there’s one we have the tools to fix, one of the clearest barriers to new developments is the permitting process. Homebuilders back in South Carolina tell me that permitting delays alone can add up to $60,000 to the cost of building a single home in rural areas, that’s often enough to derail a project before it even begins,” said Rep. William Timmons (SC-04).

• “South Texas has seen innovative building solutions. The population of Texas is increasing by leaps and bounds, and we’re looking for low-cost solutions. …Low-cost modular homes are being constructed in rural areas by nonprofits in partnership with multiple U.S. banks, and there is the largest 3D neighborhood nearing completion in the state of Texas. These are innovative solutions to our buildings and housing challenges,” said Rep. De La Cruz (TX-15).

• “Montana’s 2^nd Congressional District that I represent is the largest land mass after Alaska. So we’ve got a lot of dirt and a lot of long roads and a couple of things I’ve talked about in this Committee in the past, but I really think about the path to ownership being that fundamental part of the American dream. …Something that really sticks in my mind is that 24% of the current average single-family home sale prices from regulations,” said Rep. Troy Downing (MT-02).

• “Affordable housing, particularly rural affordable housing in places like Iowa, like much of America, faces a growing affordable housing crisis. Nearly 40% of Iowans spend at least 1/3 of their overall take-home salary just on being able to afford a place to live. And it’s not that expensive in Iowa. …My constituents are not asking for a handout. They’re asking for a fair chance to live where their parents and their grandparents worked, where they worshipped, and where they start a new life,” said Rep. Zach Nunn (IA-03).

Witnesses echoed their support for the work of the Committee.

Richard Baier, President and CEO, Nebraska Bankers Association, said: “There are a number of unique challenges which limit the ability of rural areas to maintain and build adequate housing. A majority of the homes currently being built in rural areas are large, custom homes which carry a hefty price tag. The owners of these custom homes have the financial resources to construct and finance this type of dwelling. However, there is a clear lack of housing to accommodate working families. …Fundamentally, Nebraska, like other rural areas of our great country, lacks an adequate supply of material vendors, contractors, and subcontractors to successfully build new housing units. In Nebraska, for example, there is only one true concrete business located west of our state’s east-west midpoint. Similarly, rural counties often have only one or two highly trained tradespeople in certain specialties (i.e. plumbers and HVAC). These subcontractors often have more business than they want or need.”

David Garcia, Policy Director, Up for Growth, added: “Rural housing development faces unique barriers, especially concerning inadequate infrastructure. Essential upgrades to water, sewer, power, and road infrastructure are frequently necessary for new developments, but these improvements can be prohibitively expensive. Many rural communities rely on difficult-to-expand utilities, such as well as water or septic systems, which often limit community growth. Even the reliability of existing utility systems also presents a challenge due to their age and distance from central infrastructure. … Moreover, the economics of rural housing production can be especially challenging. High transportation costs for construction materials and difficulty sourcing skilled labor drive up costs. And the smaller-scale projects typical of rural communities also rarely benefit from economies of scale, further inflating new housing’s price tag.”

Ian Maute, Director of Development, Buckeye Community Hope Foundation, on behalf of the Council for Affordable and Rural Housing, added: “Throughout rural America, there continues to be an overwhelming need for both affordable and decent housing. The lack of affordable housing reflects the limited investment in these localities. Rural renters are more than twice as likely to live in substandard housing compared to people who own their own homes. With lower median incomes and higher poverty rates than homeowners, many renters are simply unable to find decent housing that is also affordable. While the demand for rental housing in rural areas remains high, the supply, particularly of new housing, has decreased. Neither the private nor the public sector can produce affordable rural housing independently of the other; it needs to be a partnership.”