There are countless stories of professional and personal success that begin with a courageous leap of faith, leaving behind a small hometown for the bright lights and even brighter promise of the big city. Increasingly, however, the opposite is becoming true, as people migrate away from urban centres in favour of the rural way of life.
This trend was significantly accelerated by the pandemic and the shift to remote work, which sparked an exodus from the hustle and bustle of major metropolitan areas. People began seeking more affordable, laidback communities with natural beauty, shorter commutes, and close-knit communities, which are often found in rural areas.
With available land, affordable housing, and a growing demand for talent, it’s no surprise rural communities have experienced population growth. However, this growth brings a new set of challenges.
Growing demand, rising prices
As the laws of supply and demand dictate, increased demand for housing leads to rising prices and lower inventory. For rural areas, this could result in a cost of living that rivals urban centres while also threatening the very character and lifestyle that make them desirable.
Take Texas, for example. It builds more homes than any other state, yet in 2022 it still faced a shortage of 320,000 homes, according to a report by housing policy organization Up For Growth.
When multibillion-dollar investments such as Samsung’s chip manufacturing facility are announced, it’s exciting for small towns like Taylor, where life is affordable. However, a surge in population and demand for services and housing could drive up costs, changing the community’s character and disrupting the balance of local economies.
Many people choose rural life for a sense of community and a slower pace, yet this often comes at the expense of the service delivery and amenities that urban centres offer, such as access to healthcare and modern infrastructure. Governments are responding by investing in healthcare, social services, education, and infrastructure. These elements are critical to the vitality of any community, and the goal is to attract and retain both a strong workforce and developers who can meet rising demand.
Strategies for growth
Rural communities serve as feeder towns to cities and agricultural hubs. They also offer country living within reach of urban centres. Though they make up nearly 97 percent of U.S. land area, they are home to only about 20 percent of the population.
The same story plays out across Canada. Rural, remote, coastal, and northern regions make up a significant portion of the country’s landmass and contribute over 25 percent of its GDP. These areas are rich in resources—mining, forestry, agriculture, fisheries, energy, and more—and now face a growing need for skilled talent.
Governments at all levels are actively trying to attract and retain workers. In Ontario, for example, programs like the Rural Economic Development Program and the Regional Economic Development through Immigration (REDI) pilot help enable local and international talent to fill high-demand roles in healthcare, technology, and skilled trades. Internationally trained newcomers could add up to $100 billion to Ontario’s GDP over five years while supporting rural areas that are dealing with demographic decline and an aging workforce.
The province is also investing in retraining programs like Better Jobs Ontario, which covers expenses such as tuition, transportation, and childcare. Programs such as the Trade-Impacted Communities Program, offering $40 million in grants, further support local industries that have been disrupted by global trade.
Addressing housing needs
Still, housing remains one of the biggest barriers to attracting rural talent.
Workforce housing is a widespread challenge in rural areas, with Alberta a striking example. While it is easy to promote as a great place to live, a shortage of workforce housing presents a major barrier to attracting and retaining talent.
In the resource sector, temporary on-site housing with amenities is common. But in high-demand tourist destinations such as Banff, employers struggle to house staff. During peak season, many businesses operate at reduced capacity because new hires simply have nowhere to live.
While some employers offer staff lodging, these residences can quickly reach capacity. Some even rent hotel rooms for employees, which reduces availability for tourists and increases accommodation costs. Others are forced into inadequate living situations, similar to students in urban centres living in overcrowded, overpriced housing.
Organizations like the Tourism Industry Association of Alberta (TIAA) are stepping up. They have released a Workforce Housing Strategy to ensure the tourism sector, which is vital to Alberta’s economy, has the housing support it needs.
Alberta is projected to need 100,000 additional employees by 2035 to meet its $25 billion tourism target. This puts pressure on housing markets such as Banff and Canmore, where living costs have outpaced wages. Short-term rentals and limited entry-level housing have worsened the issue, while new construction has not kept pace with demand.
TIAA is also pushing for workforce housing strategies in towns like Jasper, which is still recovering from devastating wildfires. Recommendations include adjusting employee lodging deductions to reflect market conditions, removing barriers to investment in employee housing, and exploring cooperative housing models. There is also a push to regulate short-term rentals more fairly and to incorporate housing needs into regional development plans.
Just one province over, British Columbia’s tourism industry faces similar pressures. With rising housing costs and limited availability, both visitors and residents are increasingly living in vehicles. In Squamish, a hotspot for outdoor tourism, full campsites have driven people to camp in unsanctioned areas without basic services. This has led to waste and pollution issues that are reducing the quality of life for local residents.
A way forward
From municipal policies to provincial programs and federal frameworks, all levels of government must collaborate to ensure rural growth is sustainable. As rural populations rise, investment in healthcare, education, and social infrastructure must keep pace. These services are not only essential to quality of life but also key to attracting new residents.
While housing remains a major issue, employers also have a role to play. Beyond staff accommodations, they can offer competitive wages, career development opportunities, and inclusive workplace cultures. This is especially important in rural settings where isolation can be a challenge both personally and professionally.
For the right person, rural living offers a unique balance of nature, opportunity, and affordability. However, sustainable growth will require a coordinated strategy that builds capacity and avoids the challenges faced by many urban centres.
