Remote work and cheaper housing lure new rural residents

Remote work opportunities and cheaper housing are drawing many from the nation's biggest cities to smaller, often rural, areas, according to a recent report from the Economic Innovation Group, a bipartisan public-policy think tank.

"Since the pandemic began, there has been a debate about whether the rapid rise of remote work would affect where people live. Some argued that remote work effects would be mostly temporary and local. Others argued that remote work would have significant effects on where people live and the economic geography of the U.S. and elsewhere," says the report. "With the release of 2021 U.S. Census Bureau Population Estimates, we are able to see more conclusive evidence about what has happened so far. The results do not paint a picture of a continuation of recent pre-pandemic trends, but rather a significant change in where people are moving and living. While much research remains to be done, the evidence is consistent with remote work beginning to change economic geography."

Here are some top findings from the report:

• The report divides counties into six population types: large urban, small urban, suburban, exurban, metro rural, and non-metro rural. Large urban areas have seen the biggest drop in population growth rates during the pandemic, though small urban areas also declined. Population growth rates in the suburbs remained much the same over the pandemic, but exurban, metro rural, and non-metro rural saw increased growth rates.
• Remote work opportunities, not temporary pandemic policies, have been a major factor in persuading people to move to rural areas from large cities.
• Rural areas with tourism and recreation-based economies have been more likely to attract urban emigrants. Lower rural population density didn't seem to play much if any role in attracting new residents.
• Affordable housing has been a big draw for urban residents seeking to relocate.