Is Going Rural Really Cheaper? What You Need to Know Before Buying a Home in Rural Areas
In today’s housing market, many buyers are looking for ways to save money, and one of the first strategies that come to mind is buying a home in a rural area. With city real estate prices climbing, the idea of finding a $300,000 or $350,000 home seems like a dream come true—especially in places like Southern California, where the cost of living tends to be higher. But is moving to a rural area really as affordable as it seems? The short answer: not always.
The Hidden Costs of Rural Living
While you may find a cheaper home in a rural area, the total cost of living there may surprise you. Let’s take a place like Big Bear, for example. Recently, the area was impacted by wildfires, which have caused homeowners insurance premiums to skyrocket. As a mortgage professional, I need to account for those insurance costs when calculating your monthly mortgage payment. In areas like Big Bear, it’s hard to know what number to use—do I estimate $300 a month for insurance? $500 a month? The uncertainty in insurance costs can make what appears to be a bargain home feel much less affordable when all factors are considered.
But it’s not just fire-prone areas like Big Bear where costs can pile up. If you’re considering buying a home in more remote areas, like the desert, there are other lifestyle factors to think about. For instance, if you work from home, this might be an excellent option for you. However, if you have to commute to work, those long drives can significantly increase your gas expenses, eating into the savings you hoped to gain from buying a cheaper house.
The Cost of Commuting
When moving to a rural area, transportation costs are often overlooked. In many cases, rural communities are farther away from major business hubs, shopping centers, and amenities. What does this mean for you? More time spent in the car and more money spent on fuel. As gas prices continue to fluctuate, you could find yourself spending much more on your commute than anticipated. What was once a lower monthly mortgage payment could quickly be offset by a higher cost of living when commuting becomes a factor.
Why Insurance Costs Vary in Rural Areas
One of the most significant challenges buyers face when moving to rural or remote areas is dealing with unpredictable insurance costs. As mentioned earlier, homes in areas affected by natural disasters—like fires, floods, or earthquakes—are seeing much higher premiums.
For example, after the recent fires in Big Bear, many insurance companies raised their rates, making it harder for homeowners to find affordable coverage. This rise in premiums is a crucial factor to consider when evaluating whether moving to a rural area will truly save you money in the long run. And with some insurance providers pulling out of high-risk areas altogether, you might even struggle to find adequate coverage.
As a mortgage professional, it’s my responsibility to include those insurance costs when calculating your monthly mortgage payment, but that can be tricky when the numbers are unpredictable. Higher insurance premiums in rural areas might mean that the affordability of the home you’re eyeing is more complicated than it seems.
Weighing Your Options: City vs. Rural Living
Before you decide that a rural home is your ticket to saving money, it’s essential to take a step back and consider all of the factors that contribute to your cost of living. Sure, the price tag on the house may be lower than what you’d find in the city, but when you factor in insurance, commuting, and overall convenience, the reality can be quite different.
The good news is that you don’t have to figure this out on your own. I’m here to help you compare and contrast the true costs of living in rural versus urban areas. Together, we can dig into the details, look at insurance options, and explore commuting expenses to determine what truly fits your budget and lifestyle.
Let’s Break It Down Together
At Locke Your Loan, my goal is to help you make the best financial decision for your future. Whether you’re drawn to the idea of rural living or prefer the convenience of being close to the city, I’m here to guide you through the process and ensure you have a clear picture of your options.
Before you make any decisions, let’s sit down and review your priorities. Are you ready to make the move, or do you have more questions? Either way, I’m here to help. Give me a call, and we’ll dive into your homebuying goals to see what’s best for you.
Final Thoughts
At first glance, a rural home may seem like the more affordable option. But when you look beyond the price tag, you might find that the true cost of living tells a different story. From higher insurance premiums to longer commutes, there are many factors to consider. That’s where I come in—I’ll help you evaluate your options and make the best decision for your future.
Reach out today for a personalized consultation, and let’s see how we can make your homeownership dreams a reality without any surprises down the road.