Friday, December 04, 2009

Recession makes some urban dwellers go rural

As urban and suburban real-estate prices continues to suffer during the recession, the rural market is holding up better in many areas. So-called "ruralpolitans," urban immigrants to rural areas, "are looking at land as their new safe investment, one they hope could prove more stable than their jobs and 401(k)s — and provide a better lifestyle," Gewndolyn Bounds of The Wall Street Journal reports.

Ruralpolitans typical break down into three groups, Bounds writes: "Young people buying land as an asset or investment, with vague hopes to live on it someday; exurban commuters who have jobs in big towns or cities but want to escape the sprawl; and back-to-the-land types who want to dabble in hobby farming." The largest number of ruralpolitans are among the 76 million baby boomers, Bounds reports, but a large number of 20-to-early-40-somethings are joining the boomers. Widespread Internet access, enhanced renewable energy options and the associated tax credits are helping to attract the younger crowd.

Historically, economic downturns or disasters have fueled a short-lived appetite for escape to more remote areas. People approaching retirement also often move to more rural areas, Bounds writes. The U.S. Department of Agriculture's Economic Research Service says if baby boomers follow that trend the rural population between 55-85 will grow by 30 percent between 2010 and 2020. Still, the most prevalent motivation for ruralpolitans is a hedge against an unpredictable future. "I can't tell you how many people at work say, 'Man, I'd like to do that,' " one 36-year-old ruralpolitan told Bounds. "Everybody is looking for the next opportunity for hope." [Read more]

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