Numerous individuals in the United States are grappling with financial concerns, encompassing housing, healthcare expenses, and the cost of groceries, among other essential needs. However, the nature and severity of these challenges often differ significantly based on one’s place of residence, whether it be an urban or rural setting.
The struggle to break free from the cycle of living from one paycheck to the next can prove to be especially daunting for those residing in rural areas. Rural communities frequently contend with unique hurdles such as limited access to healthcare facilities and higher transportation costs.
Additionally, job opportunities in rural areas may be scarcer, making it challenging for residents to secure stable employment that offers financial security.
Here are 7 biggest financial concerns rural Americans are facing now.
1. Healthcare
One of the foremost challenges confronting rural America extends beyond the affordability of healthcare to encompass the critical issue of healthcare accessibility.
Typically, rural hospitals are characterized by their smaller size and patient base in comparison to their urban and suburban counterparts. This distinction translates into reduced revenue generation for rural hospitals, creating a precarious financial situation. Consequently, rural communities have experienced a faster rate of hospital closures than their urban counterparts, with the looming threat of additional closures on the horizon.
The repercussions of these closures are deeply concerning. With hospitals less accessible in rural areas, residents are often compelled to shoulder additional expenses for both travel and healthcare services. This dual burden not only places a heavier financial strain on individuals and families but also jeopardizes their overall health and well-being.
2. Banks
Rural regions often lack the extensive presence of banks and financial institutions that urban dwellers enjoy within their communities. This situation presents a multifaceted challenge, affecting various aspects of financial life for rural residents.
One prominent concern arises when individuals in rural areas seek to secure loans for significant investments like homes or cars. With fewer banking establishments available, accessing loans may entail longer travel distances, more time, and added inconvenience.
Moreover, the absence of physical bank branches in their vicinity can make everyday financial transactions less convenient, requiring residents to rely more heavily on digital or remote banking services.
The scarcity of banking options also has implications for financial competitiveness. In rural areas, the reduced number of banks may result in less competition, potentially limiting the choices available to consumers. Consequently, securing favorable loan rates or exploring alternatives like credit unions to reduce fees and other financial burdens becomes a more intricate task.
3. Credit history
It may come as a revelation that individuals residing in rural areas encounter disparities in accessing credit, resulting in limitations on their capacity to establish and bolster their credit scores.
This discrepancy becomes particularly pronounced when rural residents require credit for significant life milestones, such as securing housing or purchasing a vehicle. Compared to their urban and suburban counterparts, rural individuals may confront greater hurdles in obtaining the financial resources needed to fulfill these objectives.
Furthermore, access to credit cards or loans, which can be instrumental in building a robust credit history, becomes more challenging when residents do not have a nearby brick-and-mortar bank to facilitate these services. The reliance on digital or remote banking channels may not always offer the same level of convenience or accessibility.
4. Groceries
Over the past year, there has been a notable surge in grocery prices primarily attributed to inflation, posing a significant challenge for consumers across the nation. However, the impact of these rising costs has not been uniform, with certain areas experiencing more pronounced effects than others.
Urban regions, often characterized by a high cost of living, have confronted their own set of challenges stemming from inflated grocery prices. In these areas, the overall expense of living has made it difficult for residents to beat the increasing cost of groceries, putting additional strain on their budgets.
Conversely, rural areas have been particularly vulnerable to the adverse effects of surging gas prices. The transportation of food items to remote and less accessible rural communities has incurred higher fuel costs for grocery store chains. These added expenses have, in turn, been transferred to consumers in the form of elevated prices on everyday items.
5. Housing
Despite a recent dip in housing prices, they remain notably elevated when compared to previous years. As of June 2023, the median home sale price stands at $425,000. This figure is significantly higher than the June 2020 median sale price, which was $310,000. These persistent price escalations have the potential to exert a more pronounced impact on rural regions, where housing supply may be limited, yet costs continue to soar.
An additional factor contributing to the housing dynamic in rural areas is the influx of urban and suburban residents during the pandemic. The widespread adoption of remote work policies by companies allowed employees to seek out more affordable and spacious homes in rural locales. This shift in population dynamics not only increased demand but also intensified pricing pressures in rural housing markets.
The complex interplay between supply, demand, and evolving work arrangements highlights the ongoing challenges faced by rural communities in achieving housing affordability. Addressing these issues calls for a comprehensive approach that considers the unique dynamics of rural housing markets, explores strategies to expand supply, and seeks to maintain a delicate balance between affordability and growth.
6. Home maintenance
The escalating prices of housing represent just one side of the overall expense associated with finding a place to reside. Alongside housing costs, utilities such as water and electricity have also witnessed marked increases in pricing. This presents an additional challenge for rural communities, where a substantial reliance on these essential utilities is prevalent, further straining household budgets.
However, the affordability extends beyond utility costs for rural Americans. A recent study has shed light on a spectrum of housing issues that afflict rural communities.
Concerns encompass the financial burden of addressing critical problems like ensuring access to clean drinking water, combating mold infestations, and managing issues related to pests within their homes. These issues compound the challenges of finding and maintaining suitable housing in rural areas.
7. Internet connection
For rural regions, the persistent challenge of limited internet access has been an enduring concern, and its repercussions are notably contributing to financial strain among rural residents and families.
The rise of remote work, a trend accelerated by the pandemic, has encountered significant obstacles in areas with unreliable internet connectivity. The absence of robust internet infrastructure restricts the ability of rural residents to secure remote employment opportunities, further restricting their financial options.
Moreover, attempts to economize on healthcare expenses by utilizing portable health services are impeded when faced with an inconsistent internet connection. This unreliable link to medical professionals can hinder access to essential healthcare services and drive up healthcare costs.
