Friday, Jan 4 2013 8:41PM

The rural community started experiencing housing setbacks before the recession.

The economic collapse of 2008 impact both rural and metropolitan communities hard, but the former was plunging into a housing crisis long before the economy fell, according to the Housing Assistance Council (HAC).

A new report shows that applications to purchase property in rural areas fell by 56 percent between 2003 and 2010, and home values began to fall into the negatives during this period, the HAC reports. Because these values declined in the years leading up to the collapse, they have been slower to appreciate.

To make matters worse, the HAC analysis found that the incidence of rural homeowners who pay 30 percent or more of their income toward housing rose six percentage points between 2000 and 2010. Most housing analysts discourage homeowners from taking on a mortgage that requires them to pay out more than 28 percent of their take-home pay each month.

The most recent Rent vs. Buy Index released by Trulia found that homeownership is more affordable than renting in 100 metropolitan areas. However, few studies have addressed the high ownership and utility costs of living in a rural location, or the lack of affordable housing assistance extended in these areas.

While the U.S. Department of Housing and Urban Development have released some funds devoted to these initiatives, the HAC study shows rural communities require significantly more financial support to remain solvent.

For more information, check out this resource: The Housing Assistance Council