Smaller American cities are making a comeback with relocation programs

Families and young professionals from New York and New Orleans, San Francisco and San Antonio, Omaha, and expat communities abroad are homing in on one unassuming Midwest city as the ideal place to relocate and put down roots. If you tried to guess the destination, you probably wouldn’t guess Tulsa, Oklahoma. But this city is, in fact, one of the nation's hottest relocation destinations.

Tulsa is one of many communities across the U.S. that has attempted to bolster economic development by launching programs to attract new talent. When it first launched in 2018, Tulsa Remote, a program that pays remote workers from out of state $10,000 to move to the city for one year, was subject to ridicule, particularly on social media. But nearly five years into the program, the county and state have generated millions of dollars. Program participants made $2.5 million for Tulsa County and $3.1 million for the state of Oklahoma in tax revenue, according to a recent economic impact report. 

The program offered more than just an economic incentive. It also offered a place where participants, which numbered 2,400, could find relatively affordable housing, access to free coworking spaces, and the subsidized opportunity to reshape their lives somewhere else.

Notably, 90% of those 2,400 have remained in Tulsa beyond the requisite one-year commitment, and 76% of all members have been there since the program launched five years ago. People are buying homes, starting families, and participating in local events. Community, not cash, seems to be the special sauce that’s made the program work.

Oklahoma has not been the only state to see this kind of initiative. Vermont was the first state in the nation to establish a Remote Worker Relocation Program in 2018. The state offered up to $10,000 for moving expenses for those who agreed to relocate to Vermont and work remotely. Vermont built on its original success when it re-authorized funding and launched a new aspect of its relocation program in 2022. Also last year, Vermont passed initiatives and investments to help train, retain, and recruit more workers to address the state’s workforce shortage. These opportunities include:

A $3M Regional Workforce Expansion and Work-Based Learning and Training to expand regional support at the Department of Labor, connecting and assisting jobseekers and employers who are hiring. This initiative will also fund statewide on-the-job learning and training experiences to subsidize employees’ costs and create opportunities for career changes and upskilling for workers.

A $3M Vermont Trades Scholarship Program will be administered through the Vermont Student Assistance Corporation and provide scholarships for individuals enrolled in an industry-recognized training and certification program that leads to employment in high-demand sectors in Vermont.

Ten million to address healthcare workforce shortages through various grants, loan forgiveness, and incentive programs to support, recruit and retain healthcare workers in the state.

Lastly, a $3M New Relocating Worker Program to continue the state’s work to recruit new residents to the state through grants that help pay for their moving expenses.

Tulsa’s and Vermont’s success has inspired other states to create similar programs. For example, Lewisburg, West Virginia, was the first city in its state to offer a get-paid-to-move incentive to remote workers. Applications are no longer being accepted for Lewisburg, but Ascend West Virginia has started to accept applications for three West Virginia communities: Greenbrier Valley, Morgantown, and the Eastern Panhandle. According to the Pods.com blog, the program provides $12,000 payments, free coworking space, and free access to outdoor recreation options. Those who qualify get $10,000 in installments over the first year of living there. After a second year, the program provides an extra $2,000. On top of that, participants have access to free gear rentals (think zip lines, rafting, golfing, climbing, and even off-road excursions) for two years.

The Pods.com blog also reports that the Remote Shoals program in The Shoals of Alabama pays a person up to $10,000 to move to and work from The Shoals. Participants receive 25% of the total amount upfront to cover moving costs, another 25% after their first six months, and the remaining 50% after their first year living there.

Eastern Kentucky’s Appalachian region has also begun experimenting with remote work incentives, offering a $5,000 cash payment to people who relocate, with an additional $2,500 for anyone who moves with a spouse who works in education or health care. SOAR (Shaping Our Appalachian Region), the nonprofit running the program, hopes to see 25 initial relocations through this program.

While cash incentives have proven to be a successful strategy for many cities, Bloomington, Indiana, has taken a different approach with its Bloomington Remote program. Coordinated by the Dimension Mill, a nonprofit coworking space, the program forgoes cash incentives in favor of promoting its community assets and benefits. Since its launch in 2021, the program has led to the relocation of 74 individuals and 40 households representing an average household income of nearly four times the city’s median, according to information provided by Andy Lehman, head of accelerator programming at the Mill. Participants receive full-time membership to the Mill’s coworking space, invitations to monthly meetups, opportunities to network with civic, business, and nonprofit leaders, and personalized support for entrepreneurs.

Bloomington Remote stands out even among Indiana’s relocation programs. According to MakeMyMove.org, an Indianapolis-based platform connecting remote workers with relocation programs, Bloomington is the only program in the state not offering a cash incentive or relocation assistance. Starting in 2022, new legislation has enabled the other 25 programs to offer direct payments to out-of-state workers as part a municipality’s workforce retention and recruitment strategy.

The Moving Labor Blog lists other cities, such as Baltimore, Maryland, and Topeka Kansas that are recruiting home buyers with cash incentives.

NOTE: Laura Lacy Graham, project administrator and policy analyst, and Casey Nemecek, program director, contributed to this article.