Small Town or Big City: Forecasting Future Real Estate Demand

2 June 2025

The age-old debate between small-town charm and big-city buzz has never been more relevant, especially when it comes to real estate. With more people rethinking their living preferences post-pandemic, the question arises: where is the future demand shifting? Will small towns continue to see an influx of city escapees, or will urban areas bounce back stronger than ever? Let’s dive in and forecast how demand is shaping up in both settings.

The Great Migration: What’s Happening with Homebuyers?

Over the past few years, we’ve seen a major shift in housing trends. Remote work has unlocked the ability for people to live wherever they please, and many have chosen to flee the city lights in favor of quieter, more affordable small towns. However, cities are far from dead. In fact, they’re adapting and evolving to meet the new expectations of residents.

So, which will win in the long run? The peaceful countryside or the vibrant urban core? To answer that, we need to take a look at what’s fueling demand in both markets.

Small Towns: The Appeal of Space, Affordability, and Community

1. More House for Your Dollar

Let’s be honest—real estate prices in major cities have become downright outrageous. Buying a postage-stamp-sized apartment in New York or San Francisco costs more than a sprawling home in the suburbs or countryside.

Small towns offer significantly lower costs of living without sacrificing comfort. The appeal of owning a large home with a backyard, instead of sharing walls with noisy neighbors, is a major draw for families and retirees alike.

2. Work-from-Home Revolution

If there’s one thing the pandemic taught us, it’s that a decent Wi-Fi connection can replace a long commute. With remote work more common than ever, living near a corporate office is no longer necessary.

This shift has allowed workers to move away from high-cost cities into smaller towns where they can enjoy a more balanced lifestyle. Why deal with traffic jams when you can sip coffee on your front porch before logging into Zoom?

3. A Slower, More Connected Lifestyle

Many people crave a sense of belonging, and small towns offer exactly that. Here, you actually recognize your neighbors, shop at locally owned stores, and engage in community events.

Cities, for all their excitement, can sometimes feel isolating. In small towns, there’s a greater sense of community and a slower pace of life that appeals to those tired of the breakneck speed of urban living.

Big Cities: The Unmatched Energy and Opportunities

1. Job Opportunities Still Rule

While remote work has exploded, not every career can be done from a laptop. Industries like finance, entertainment, healthcare, and hospitality still rely heavily on physical office presence. That means cities will always have a certain level of demand due to their job markets.

Many young professionals still see cities as career launching pads. Access to top-tier companies, networking events, and cultural amenities make urban living a smart choice for upward mobility.

2. The Convenience Factor

Big-city life comes with a level of convenience that small towns simply can’t match. Public transportation, 24/7 services, diverse dining options, and cultural experiences are all within arm’s reach.

Need a late-night snack? Want to catch a last-minute concert? Craving authentic international cuisine? The city delivers in ways small towns never can.

3. The Social Scene and Entertainment

There’s no denying the electrifying energy of a city. Whether it’s nightlife, concerts, art galleries, or sporting events, cities offer a level of entertainment and cultural diversity that draws in younger crowds, singles, and social butterflies.

Many people thrive in the hustle and bustle, feeding off the networking opportunities and excitement that come with city living.

Demographics Matter: Who’s Moving Where?

Predicting real estate demand isn’t just about lifestyle preferences—it also depends on demographics. Let’s break it down:

- Millennials and Gen Z: These younger generations are split. Some love the city’s excitement, but others are prioritizing homeownership, which is much more attainable in smaller towns.
- Families and Retirees: Both tend to prefer quieter, safer environments, pushing them toward suburban and small-town areas.
- Investors: With rising home prices, real estate investors are snatching up properties in both booming small-town markets and recovering urban centers, hedging their bets on future demand.

The Future of Real Estate Demand: Where Are We Headed?

So, what’s the final verdict? Well, it’s complicated.

While small towns have gained traction thanks to remote work and affordability, big cities are adjusting and will always have a gravitational pull. The future of real estate demand looks like a hybrid model—where people move around depending on their life stage, career opportunities, and personal preferences.

Some experts predict a continued trend of suburban and small-town growth, while others argue that cities will make a strong post-pandemic comeback as businesses adjust to hybrid work models.

In the end, real estate demand will remain strong in both spaces, just for different reasons. Small towns will continue attracting those seeking affordability and space, while big cities will appeal to those chasing career opportunities and vibrant lifestyles.

Final Thoughts

The small-town vs. big-city debate isn’t going away anytime soon, especially in the ever-changing real estate landscape. Whether you’re looking to invest or relocate, understanding the driving forces behind each market is key.

At the end of the day, it all comes down to what you value most. Do you crave peace and open spaces, or do you thrive in the electric energy of a bustling city? The choice is yours—but whichever way you go, the future of real estate is looking bright in both directions!