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By Suzanne Blake
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In the age of remote work, Americans are more empowered than ever to choose exactly where they want to live.
While previously many workers had to stay in or near cities with high costs of living, some smaller, more affordable cities are drawing more attention.
And some of these cities are actually offering cash incentives to those who move there, according to a new report from relocation marketplace MakeMyMove. "Places like Morgantown and Texarkana can suddenly compete with Austin or Denver," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
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Why It Matters
The percentage of people working from home is now a whopping 20 percent, meaning one fifth of the workforce is a remote worker, according to the U.S. Bureau of Labor Statistics.
Since so many people can telework, cities that have dealt with declining populations or lower economic growth are drawing people to relocate with some significant cash incentives.
What To Know
Eight cities have offered cash incentives specifically targeted to remote workers to settle down in their communities.
This includes New Albany, Indiana, which provides a $5,000 relocation cash incentive, a five-year Dual Co-Working Space Membership to The Root and Novaparke Innovation and Technology Campus and a $5,000 business start-up grant.
Meanwhile, the town of Morgantown, West Virginia, is also hoping to recruit more residents with a $12,000 relocation cash incentive as well as free co-working space and social programming.
In Illinois, Jacksonville is giving new new remote residents a $5,000 relocation prize alongside $300 in Chamber Bucks and three months of fiber broadband service.
Mayfield, Kentucky, which currently has a population just under 10,000, is also hoping to draw remote workers in with a $5,000 relocation cash incentive, lunch with the Mayor and other local leadership, as well as membership to the Mayfield Graves County Young Professionals Group and Rotary Club.
Further south, Columbus, Georgia, offers a $5,000 relocation cash incentive, six months of co-working space at CoWork Columbus, coffee with the mayor, and a one-year membership to the Young Professionals Program and Greater Columbus Chamber of Commerce.
The Lone Star State also has some cities hoping to bring in more new blood.
Texarkana, Texas, will give new residents a $5,000 relocation cash incentive, 25 percent tuition discount to Texas A&M Texarkana and a one-year membership to The Assembly Line, Texarkana's brand-new creator space.
According to MakeMyMove, Hermitage, Pennsylvania, is also offering a $5,000 relocation cash incentive, six months of coworking space and monthly coffee networking events.
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What People Are Saying
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "Why passively wait for residents to move in when you could be paying them to come? Smaller metros are hemorrhaging talent and tax dollars to coastal hotspots. It's population decline meets remote work revolution, right? Places like Morgantown and Texarkana can suddenly compete with Austin or Denver."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "For many growing locations like Morgantown or Texarkana, the economic surge is only sustainable if they can find more residents that can serve as employees to industry and taxpayers to support public amenities."
"Many non-major metro areas saw a boom during the pandemic, as workers fled cities in favor of less populous towns where remote work was easy and the cost of living was cheaper. With many of these same individuals now returning to the office and the locations that house them, these same towns and others are trying to hang on to that growth model by offering financial incentives to relocate."
What Happens Next
For many of these cities, remote workers are the "golden ticket" to economic growth, Ryan said.
"Why chase after companies when you can attract their employees directly? These workers bring outside salaries, often nice sized paychecks, but spend locally in economies," Ryan said.
"They're not just throwing cash at people. Notice how Columbus is offering coffee with the mayor, and Texarkana includes VIP access to the business scene. They've figured out that money gets people to come, but community keeps them from leaving."
Beene echoed this sentiment, saying the investment could prove worth the risk.
"While handing out thousands to people to relocate may be seen by some as a poor way to spend city dollars, it could prove to be a wise decision if those individuals end up becoming residents and pump additional tax dollars into their system over time," Beene said.
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