Why Americans Are Moving to Small Towns in 2026

If it feels like everyone you know is either leaving a big city or talking about it, you’re not imagining things. New data shows Americans are moving to quieter, less populated states in record numbers this year — and the reasons behind the shift say a lot about what people actually want out of where they live.

The numbers behind the move

Roughly 15 million Americans relocated across state lines in 2025, and a growing share of them skipped the usual big-city destinations entirely. According to self-storage data company Stora, which analyzed Census migration figures alongside housing market data, less-populated states are now attracting the highest share of new residents — with South Dakota topping the list as the single most popular destination.

The reasoning is refreshingly simple. Roughly 88% of movers in the analysis said they relocated to save money, and about three in four said they were drawn by better access to the outdoors. Put another way: this isn’t really an “anti-city” trend. It’s a “my paycheck can finally breathe” trend.

Meanwhile, some of the priciest states in the country are seeing the opposite pull. Colorado posted one of the largest net population losses in the analysis, and it’s keeping company with Massachusetts and Illinois — three states where average home prices sit well above the national median.

What’s actually driving people out of expensive states

It’s not just sticker shock on a home listing. A few forces are compounding at once:

Remote and hybrid work isn’t going away. For a growing number of workers, the option to live somewhere without sacrificing a city salary is no longer a pandemic-era novelty — it’s just how their job works now. That flexibility means the calculus of “where can I afford to live” and “where can I find work” have quietly become two separate questions.

Mortgage rates are keeping people cautious. With 30-year fixed rates sitting above 6.5% for weeks running, every dollar of home price matters more than it used to. A $300,000 home in a lower-cost state carries a dramatically smaller monthly payment than the same loan on a $500,000+ coastal listing — and that gap is exactly what’s pulling people toward more affordable markets.

Quality of life is doing more of the deciding. Outdoor access, quieter pace, and a lower cost of living are showing up again and again as top reasons movers give for their destination choice — not just what they’re leaving behind.

It’s not only about pinching pennies

Worth noting: this shift isn’t purely a story about people fleeing high costs. Plenty of movers are relocating toward something — better schools, more space, proximity to family, or simply a lifestyle that a big metro can’t offer at any price. Affordability opens the door, but it’s rarely the only reason someone walks through it.

What this means if you’re thinking about a move

If you’ve been eyeing a move to a smaller city or a less-crowded state, you’re part of a genuine, data-backed trend rather than an outlier. A few things worth keeping in mind as you plan:

Run the real numbers, not just the sticker price. A lower home price plus a lower cost of living can mean a meaningfully different monthly budget — but property taxes, insurance, and utility costs vary widely by state, so it’s worth comparing more than just the median home value.
Talk to your employer before you assume “remote is remote.” Some companies have location-based pay adjustments or state tax-nexus rules that affect what a move means for your paycheck.
Visit before you commit, if you can. Quiet and outdoor access sound great on paper, but access to healthcare, schools, and daily conveniences varies a lot between a small city and a truly rural community.

Curious how a specific city stacks up on cost of living, housing, and lifestyle before you make the leap? Explore our relocation guides by state and city, or answer a few quick questions and we’ll help you build a custom guide tailored to what you’re actually looking for.