The U.S. House Subcommittee on Housing and Insurance recently convened a hearing to spotlight the pressing housing challenges in rural America. Titled “Housing in the Heartland: Addressing Our Rural Housing Needs,” the session brought together industry experts to discuss how rural communities can access private investment, mobilize local resources, and overcome unique development hurdles.
Chairman Rep. Mike Flood opened the hearing by noting, “Rural areas face a different set of housing issues than cities. While land might be cheaper, the logistics of building homes in remote areas can make projects more expensive overall.”
Expert Perspectives: Understanding the Rural Housing Crisis
Four seasoned professionals testified, offering insights into the specific needs and obstacles rural communities face:
- Richard Baier, President and CEO, Nebraska Bankers Association
- David Garcia, Policy Director, Up for Growth
- David Lipsetz, President and CEO, Housing Assistance Council
- Ian Maute, Director of Development, Buckeye Community Hope Foundation, representing the Council for Affordable and Rural Housing (CARH)
Richard Baier: Building Challenges in the Heartland
Baier highlighted the lack of basic resources in rural construction. “Most of the new homes in rural Nebraska are expensive, custom-built residences because those buyers can afford them,” Baier explained. “There’s a serious shortage of affordable homes for working families. We simply don’t have enough contractors, material suppliers, or labor to support new construction at scale.”
He gave an example: west of Nebraska’s central point, there is just one concrete supplier for the entire region. Plumbers, HVAC technicians, and other specialized tradespeople are also in short supply, often juggling more projects than they can handle.
David Garcia: Infrastructure and Economics Are Key
Garcia emphasized that infrastructure is a major hurdle. “New housing often requires upgrades to utilities like water, sewer, and roads. But these improvements are costly and often not feasible for small towns,” he said. Many rural areas rely on systems like wells or septic tanks that are hard to scale, limiting growth.
He also noted the economics of rural construction are tough: high transportation costs for materials and limited access to skilled labor drive up expenses. Smaller-scale developments, typical in rural areas, miss out on cost-saving benefits from building at scale.
David Lipsetz: We Have the Tools, But Need Collaboration
Representing the Housing Assistance Council, Lipsetz stressed that rural housing affordability is in crisis — but not unsolvable. “We can solve this if we invest wisely and collaborate across public and private sectors,” he said.
Lipsetz argued that the market alone can’t fix the supply-demand imbalance. “There’s never been a society that fully met its housing needs through the private sector alone,” he noted. “We need smart regulation, strong public support, and targeted partnerships to get this done.”
Ian Maute: Partnership is Essential
Speaking on behalf of CARH, Maute pointed out that rural renters face a tougher road than homeowners. “Renters are more than twice as likely to live in unsafe or inadequate housing,” he stated. Lower incomes and higher poverty levels mean many renters can’t afford decent housing.
Demand remains high, but new affordable rental construction is lagging. “Neither the public nor private sector can go it alone. It has to be a team effort,” Maute concluded.
The Bigger Picture
The hearing made clear that rural America’s housing struggles require a tailored approach. Unlike urban centers, rural regions face unique combinations of limited workforce, infrastructure gaps, and underinvestment. However, through creative public-private partnerships and by reducing red tape, the panel agreed real progress is within reach.
By supporting innovative financing, training tradespeople, and expanding access to materials and infrastructure, policymakers and stakeholders can create a more sustainable housing future for rural communities. For more information about financing visit Nadlan Capital Group.