It used to be that people grew up in a community, acquired a career that impacted their local economy, and raised their families within these familiar locations. Those who did not stay put and continue to put down roots where they were raised were seen as risk-takers or adventurers. That era has long since vanished. Especially in recent years, the dynamics of where people choose to live have had significant transformation. This has largely been influenced by affordability and the rise of remote work opportunities.
The Burden of Affordability
For decades, the American dream of homeownership with its white picket fence was the status symbol that most Americans reached for. In the past handful of years, that dream and reality have been outside the reach of their financial abilities. Housing prices that are skyrocketing year after year, particularly in major cities and metropolitan areas, have priced out the average hopeful homebuyer. A recent report by the National Low Income Housing Coalition found that a full-time minimum wage worker would need to work over 120 hours a week to afford a two-bedroom rental unit. This is a feat that is nearly impossible, and highly undesirable.
This affordability crisis has pushed many to reconsider and adjust their living situations. Young professionals are heavily weighed down by student loan debt and wages that are not in line with current inflation. They are findingtraditional career hubs such as New York City or San Francisco difficult to find their footing in. On the other end, retirees on fixed incomes are also feeling the pinch. They are largely being forced to downsize or relocate to more affordable areas so they can maintain the current level of lifestyle they envisioned retiring with.
The Rise of Remote Work
Remote work, which has gone mainstream primarily influenced by technological advancements and the COVID-19 pandemic, has reshaped residential choices in a great way. Remote work has upset the traditional office setting, allowing many employees to commute to their living room instead of the office across town. This newfound flexibility has allowed individuals to prioritize factors beyond commuting distance, such as quality of life, proximity to nature, and overall living costs.
For instance, professionals in industries ranging from technology to finance now have the ability to live in more affordable locations across the nation without giving up career opportunities. This flexibility has not only increased the area you might search for a place to live but has also revitalized smaller communities that previously struggled with economic decline and a population that sought bigger cities for a chance at increasing their salary.
Impact on Urban and Rural Areas
The impact of these trends in the past handful of years reaches beyond just demographic shifts. Urban areas, which once buzzed with activity and economic growth, are now struggling with lowered demand for commercial real estate and a landscape that is changing in regard to consumption patterns. In contrast, rural areas and smaller towns are seeing a population boom in their small communities, due to their affordability and relaxed lifestyle. New residents are predominantly enjoying the small-town feel and community spirit of their quieter locations.
The local economies in these areas are benefiting from increased spending in many areas, including housing, goods, and services. Businesses that were once struggling are being brought back to life by catering to a growing population of remote workers and their families. This flood of new residents has also prompted local governments and developers to invest in infrastructure improvements, including broadband expansion and community amenities, further increasing the appeal of these areas as desirable residential options.
Challenges and Considerations
This reshuffling of population density isn’t without its challenges, though. These rapidly growing communities are seeing the struggle to keep up with the demand for housing, infrastructure, and local services. Longtime residents in these small towns are increasingly frustrated by the change in the culture of their communities. Those who are moving in from large urban areas don’t always see how they are impacting the quiet lives of others. It is important to seek to have an understanding of the other side, knowing that we are all seeking a better life for ourselves and our families.
For remote workers themselves, adapting to a virtual work environment requires discipline and strong communication skills. It’s also important to consider potential tax implications and the availability of reliable internet access in their new location.
Looking Ahead
As remote work does not appear to be going away anytime soon and affordability remains a priority for many, the future of where people choose to live appears ready for change to continue. While major cities will likely hold onto their desirability for certain demographics and are not in danger of being abandoned, the trend toward remote work-enabled living arrangements is expected to continue. This shift not only reflects changing economic realities but also offers a new approach to integrating work and personal life, where individuals and families steadily seek a life that supports personal well-being and professional fulfillment.
If remote work freedom has you reconsidering where you want to call home, contact us today to find your new dream location.