Danielle Hale Chief Economist | realtors.com
When Cameron Austin was 27, she lived in Washington, DC, paying over $2,000 monthly for a one-bedroom apartment. Buying a similar unit would have cost her at least $400,000. The COVID-19 pandemic and the shift to remote work led her back to Roanoke, VA. Initially a temporary move, it became permanent when she realized the benefits of remote work allowed her to live anywhere without sacrificing job quality.
In 2021, Austin purchased a 1,700-square-foot home in Roanoke for $290,000 with interest rates around 3%. Now 31, she reflects on the change: “I loved DC and never thought I’d leave,” but COVID altered perspectives. “Do I miss living in a bigger city? Absolutely,” she admits. However, financial stability without career sacrifice is beneficial.
Small towns are becoming more popular among millennials and Gen Zers aged 25 to 44. A study shows that remote work offers geographic flexibility. Hamilton Lombard from Weldon Cooper Center at the University of Virginia notes this trend is driven by affordable housing options outside expensive markets.
The U.S. Census Bureau reports small towns and rural counties as top relocation destinations for young adults. From 2010 to 2013, only 27% of these areas saw an increase in residents aged 25-44; this decade has seen that figure rise to 63%.
“If remote work remains much more widespread than before 2020 and labor markets stay tight,” says Lombard, “the 2020s are likely to offer workers more geographic flexibility than in any recent decade.”
Lombard identified small towns experiencing population growth among those aged 25-44:
- Jefferson, GA: +19%
- Prineville, OR: +15%
- Sandpoint, ID: +16%
- Pahrump, NV: +16%
- Homosassa Springs, FL: +14%
Conversely, large cities see declines:
- San Francisco: -7%
- New Orleans: -5%
- Honolulu: -4%
- San Jose: -4%
This demographic shift indicates changing preferences influenced by economic factors and lifestyle choices.
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