Last month a Government inspector dismissed an appeal turn the Sun Inn on Church Lane in Skirlaugh, which closed in 2018, into five homes.
Owners David and Gillian Furman made the appeal against East Riding Council's refusal of planning permission to allow the pub to be demolished and the housing built.
They claimed that the Duke of York at the entrance to Church Lane and other community facilities would serve the needs of the community.
However Inspector Diane Cragg said "the strength of opposition suggests that there is, and would continue to be, sufficient demand for a separate drinking establishment".
And she said although the building was in a poor state of repair, and despite extensive alternations, it "has significance because of its age, its contribution to the historic core of the village and its strong communal association".
The plans featured three terraced homes on the front and two bungalows at the back, but would, Ms Craggs said, cause "unacceptable harm" to neighbours' living conditions.
The latest proposals submitted to East Riding Council in December are for four homes instead - three in the front and one at the back.
A number of residents have objected, including one who said the Sun Inn was "part of our heritage".
Although the windows had been smashed, people looked up to it with "pride" and the parish council had got it designated as an asset of community value.
The resident said since the pub's car park had been closed - part of which was used by people shopping at the local Costcutters store and also by delivery lorries congestion down Church Lane "has become so bad that it is a danger to pedestrians and drivers alike".
Villagers applied last year to formalise two public right of ways across the northern end of the property and through the car park, which are used by residents as a shortcut and to get to the shops.
Villager Stewart Emerson said there was still a need for two pubs in the village.
He said: "It wasn't the most successful pub, but it was on the verge of turning round. If someone put money in it and put it back to a pub, there's a lot of people who would use it."
Ward councillor John Holtby said he'd be surprised if the footpaths weren't confirmed and he thinks the owners may have to have another change of plan.
He said: "There's been no buyer and really the community haven't come up with a plan at the moment.
"In an ideal world it would remain for the use of the community as a pub or some sort of community asset. If that fails it would be better to do something rather than leave it as it is."