WASHINGTON, D.C. — The Consumer Federation of America (CFA) has released a new report, Rural Homeownership Challenges: A Perspective from Eastern Kentucky. The report sheds light on the mounting crisis facing rural homeowners across the country, using Perry County, Kentucky, as a powerful case study. The findings expose a fragile housing landscape marked by aging homes, limited financing options, and the compounding impact of climate disasters.
Sharon Cornelissen, Director of Housing at Consumer Federation of America, said: “One in five families in the United States lives in rural areas, where they face a distinct version of our nation’s housing crisis. In rural Kentucky, housing costs have gone through the roof and young Kentuckians struggle to find affordable, adequate homes to buy.”
The report reveals a housing system stretched to its limits. In communities like Perry County, homes are often inherited or rented informally. Decades-old homes suffer from extensive disrepair, while conventional mortgage products and federal loan programs fail to meet the needs of low-income rural residents. This housing instability is further intensified by severe climate events, particularly flooding, which damage property, displace families, and expose deep gaps in recovery and resilience resources.
“Eastern Kentucky was hit by devasting flooding in 2022 and again in February 2025,” said Sharon Cornelissen, Director of Housing. “Natural disasters are making the rural housing crisis worse– wiping out homes, deepening existing shortages, and putting enormous pressure on families already struggling to keep up. Lower-income homeowners face rising costs driven by climate change, from higher utility bills and underinsured repairs to skyrocketing home and flood insurance premiums.”
To help more rural families become and stay homeowners, the Consumer Federation of America is calling for an expansion of rural-focused mortgage lending tools, increased engagement from Federal Home Loan Banks and State Housing Finance Agencies, and the passage of new tax credit legislation such as the Neighborhood Homes Investment Act to support home rehabilitation and preservation.