Rental Affordability and Covid-19 in Rural New England

15 Pages Posted: 14 May 2021

See all articles by Nicholas Chiumenti

Nicholas Chiumenti

Federal Reserve Banks - Federal Reserve Bank of Boston

Date Written: April, 2021

Abstract

Although a shortage of affordable rental housing is often framed as an urban-area issue, rural communities also suffer from this problem. On average, rural and urban renters spend similar shares of their income on rent and have comparable rates of housing-cost burden. Years of slow income growth and skyrocketing rents, particularly during the 2000–2010 period, have eroded slack in household budgets that may have gone toward other expenses or toward savings. The coronavirus pandemic likely has exacerbated affordability problems by putting many rural residents out of work. The share of jobs lost in rural New England communities has been large, even though these areas have seen far fewer cases of COVID-19 (relative to their population size and overall) compared with the region’s urban areas. This is in contrast with the experience in much of the rest of the country, where, as of January, rural areas nationally had seen far more COVID-19 cases but had lost a smaller share of jobs. Due to the economic conditions in the region’s rural areas, many renters could find it increasingly difficult to afford their housing costs. Even after the pandemic ends and the negative economic impact subsides, rural New England households likely will still face considerable affordability challenges.

Keywords: New England, NEPPC, affordable housing, COVID-19, coronavirus, rural areas, housing-cost burden

Suggested Citation

Chiumenti, Nicholas, Rental Affordability and Covid-19 in Rural New England (April, 2021). FRB of Boston Working Paper No. 2021-1, Available at SSRN: https://ssrn.com/abstract=3843794

Nicholas Chiumenti (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Boston

600 Atlantic Avenue
Boston, MA 02210
United States

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