US Real Estate Trends: Millennials Favor Small Towns

A new study reveals millennials and Gen Z are flocking to small towns and rural counties, reshaping the US real estate landscape.

In a remarkable shift within the U.S. real estate landscape, small towns and rural counties are witnessing an unprecedented influx of millennials and Gen Zers, particularly those aged 25 to 44, as highlighted by a recent study. This demographic transformation is largely attributed to the rise of remote work and a competitive labor market, which have conspired to grant workers an extraordinary degree of geographic flexibility in their living arrangements.

As urban centers become increasingly unaffordable, many remote workers are gravitating towards these smaller communities, lured by the promise of affordable housing options. The U.S. Census Bureau corroborates this trend, revealing that small towns and rural counties have emerged as the premier relocation destinations within the nation, with a notable surge of individuals aged 25 to 44 contributing significantly to population growth. In fact, the allure of these locales has drawn younger adults at a rate not seen in nearly a century.

To contextualize this demographic shift, consider the data from 2010 to 2013, during which a mere 27% of counties in rural and small metropolitan areas experienced an uptick in their population of 25- to 44-year-olds. Fast forward to the current decade, and that figure has skyrocketed to an astonishing 63%. This dramatic increase underscores a profound transformation in the residential preferences of younger generations.

Among the cities experiencing the most significant growth in residents aged 25 to 44 are Jefferson, GA, with a median home price of $481,900; Prineville, OR, where homes average $499,500; and Sandpoint, ID, boasting a median price of $727,600. These figures not only reflect the shifting dynamics of the US real estate market but also hint at the evolving aspirations of a generation seeking both affordability and community in their living environments.