Why Remote Work is Transforming Southwest Virginia into a Hotspot for Digital Nomads

Rising housing prices in metropolitan areas and the continuation of remote work options post-pandemic are slowly changing Southwest Virginia’s economic and demographic fortunes, according to a report from the University of Virginia’s Weldon Cooper Center for Public Service.

Although the region still has an older and declining population, with more deaths than births, new residents are migrating into the area. This shift is attributed to increasing housing prices in Tennessee and parts of Virginia, alongside employers embracing hybrid remote work arrangements.

“This has historically been the poorest part of Virginia, the area with some of the most negative population trends,” said Hamilton Lombard, the Cooper Center demographer who wrote the report. “For decades, the region was losing thousands of young adults, and we’re seeing that turnaround to where it’s now pulling some in.”

Remote work is one of the big drivers of the change. Data indicates that while companies are bringing workers back to the office, most white-collar workers continue to work remotely, either full time or splitting their time between home and a central office.

“The persistence of remote work has effectively resulted in Southwest Virginia and much of rural Virginia becoming the outer suburbs of the large cities in the mid-Atlantic,” the Weldon Cooper report states.

As a result, regions like Southwest Virginia have become desirable alternatives for those seeking affordability without sacrificing quality of life. The area offers culture, recreation, and educational opportunities, such as those found at UVA Wise.

“Southwest Virginia is well-positioned. It has mountains. It has a temperate climate. It’s affordable: a $100,000 salary in Northern Virginia won’t get you much, but in Southwest Virginia, you can live quite well,” Lombard said.

With new residents come new business ideas and startups. From 2019 to 2023, Southwest Virginia saw a 70% increase in business applications to the IRS, just behind the Chesapeake Bay region.

“Ten years ago, opening a business in Abingdon was far riskier than in Northern Virginia. Now the risk is lower, and the rewards are real,” Lombard added.