The Rise of Lifestyle-Driven Real Estate Markets
In recent years, the migration trends of Americans have shifted significantly. The COVID-19 pandemic accelerated a movement away from major metropolitan areas and towards smaller markets with more natural amenities and a higher quality of life. This transition, which we call the "Sixth Migration," represents a fundamental shift in population growth patterns. For real estate investors, this change offers both opportunities and challenges.
According to a 2023 U.S. Census report, the most populous urban areas in the country, such as New York, Los Angeles, and Chicago, have experienced substantial population losses through domestic migration. In contrast, smaller markets, particularly those in the Sunbelt and Mountain West regions, have seen an influx of new residents (1)

The pandemic created a perfect storm: remote work allowed more flexibility in choosing living environments, and households began prioritizing factors like affordability, space, and access to natural amenities (2)
The preference for lifestyle-rich locations is not merely a short-term trend. Even before the pandemic, a study by the American Enterprise Institute found that metro areas near natural resources were experiencing population growth. The pandemic simply amplified these pre-existing patterns (3). Real estate developers are taking note of this transition, as it represents a long-term shift in housing demand.
For developers and investors, the implications are clear. As people seek out locations with a better quality of life, smaller cities and suburban areas with access to nature will become the epicenter of new development. Investors should prioritize projects in markets offering green spaces, outdoor activities, and a lower cost of living. While the largest cities may continue to lose residents, emerging lifestyle markets offer a unique mix of amenities to attract them (4)
How Natural Amenities Are Shaping the Future of Housing Demand
One of the primary drivers of the Sixth Migration is the rising importance of natural amenities. Across the United States, families and individuals are seeking out locations that offer more than just employment opportunities—they want a high quality of life, access to outdoor recreation, and affordable housing. This shift is fundamentally changing the nature of housing demand and presents a lucrative opportunity for real estate investors.
In a 2023 report by the Philadelphia Federal Reserve, researchers highlighted the increasing significance of amenities such as parks, hiking trails, and open spaces in driving housing demand. Cities with abundant natural amenities have seen slower growth in housing prices than their larger urban counterparts (5).
The report points out that smaller markets, particularly those near natural resources, are benefiting from an influx of new residents (6)
This shift towards lifestyle-driven housing preferences has been amplified by the pandemic. The remote work revolution, which gave workers the freedom to choose where they live based on lifestyle rather than proximity to a job, has spurred migration to smaller towns with natural beauty. In places like Boise, Idaho, and Bend, Oregon—both known for their outdoor recreation—demand for housing has skyrocketed as people flee dense urban environments (7)
For real estate investors, natural amenities are a key differentiator in housing demand. Investors should seek out projects in areas rich in outdoor activities, where the appeal of nature enhances both the desirability of properties and the potential for long-term value appreciation. As the preference for a lifestyle-focused environment continues to grow, those markets offering natural beauty will thrive (8)
1: U.S. Census Bureau, "Two Years Into Pandemic, Domestic Migration Trends Shifted," March 30, 2023.
2: U.S. Census Bureau, "2023 State-to-State Migration Flows Statistics Now Available," 2023.
3: American Enterprise Institute, "Metro Areas Near Natural Resources Experiencing Population Growth," 2023.
4: Brookings Institution, "The Sixth Migration: Population Growth Patterns," 2023.
5: Federal Reserve Bank of Philadelphia, "The Increasing Significance of Natural Amenities in Housing Demand," 2023.
6: Federal Reserve Bank of Philadelphia, "The Increasing Significance of Natural Amenities in Housing Demand," 2023.
7: U.S. Census Bureau, "Two Years Into Pandemic, Domestic Migration Trends Shifted," March 30, 2023.
8: Federal Reserve Bank of Philadelphia, "The Increasing Significance of Natural Amenities in Housing Demand," 2023
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