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Living off the grid is gaining popularity, with an increase in rural mortgage applications.

Living off the grid is gaining popularity, with an increase in rural mortgage applications.

Leaving the grid, once thought to be a niche lifestyle associated with hippies or those preparing for the end of days, is gaining traction among a diverse group of home buyers. This includes young professionals and families who are drawn to a simpler way of life—returning to their roots, so to speak.

Welcome to the modern homesteading movement, where individuals embrace self-sufficient living in rural areas.

Typically, this lifestyle means growing at least part of one’s own food and generating energy independently, using solar, wind, or even hydropower. It’s about minimizing waste and weaving sustainability into daily life.

The interest in back-to-basics living surged during the COVID-19 pandemic, driven by remote work opportunities and a greater demand for space, according to Theresa Lunn, a broker and owner at United Country Real Estate West Montana Group.

Lunn, who grew up on a ranch and has been selling properties in western Montana for nearly two decades, has noticed a shift in her clientele. More digital nomads and young families are expressing a desire to reconnect with nature.

“It makes my heart happy,” she says. “A lot of young people seem to have woken up to this idea… They’re wise, observing what’s around them. They’re saying, ‘We want to be more self-sufficient.’”

Post-pandemic, there’s been a noticeable movement out of urban centers into rural communities, often in search of affordable housing and a more relaxed lifestyle.

Rural Living is on the Rise

A report from November 2024 by Fannie Mae indicated that there’s been an 80% rise in rural residential applications since the pandemic began.

Kevin Park, an economist at Fannie Mae, noted that the influx of urban dwellers into these areas has significantly skewed housing demand.

The same report found that even though rising mortgage rates dampened interest in metropolitan areas, demand in rural locations has remained above pre-pandemic levels.

Interestingly, while resort-style communities saw early interest wane, areas well-equipped with schools, hospitals, and other facilities continue to attract home buyers.

According to Realtor.com data, prices in typical rural counties have jumped 64% from July 2019 to July 2025, whereas urban areas saw a 42% increase. Since mortgage rates began to climb in 2022, the demand for rural properties has intensified, with prices in those areas rising over 13% compared to just 4% in urban settings.

Simply put, homes in rural areas are seeing price increases that are more than three times those in urban areas.

Jake Krimmel, a senior economist at Realtor.com, points out that despite rising costs, rural properties remain a more affordable option compared to urban homes.

In July, the median price in rural locations stood at $299,950, compared to $348,200 in urban counties—a 14% difference. The so-called “rural discount” was at 25% in 2019 and saw a slight decrease to 21% in 2022.

Krimmel adds, “Prices are gradually converging as demand for rural living has surged.”

Multiple factors contribute to this rural boom. The rise of remote work, coupled with increased interest rates, makes affordable locations more attractive to budget-conscious buyers.

Lunn agrees, noting that rural properties gain traction especially in tougher economic times. The ability to work from anywhere, thanks to better high-speed internet access, has been a pivotal change.

Variations in Rural Living

It’s important to remember that rural living isn’t a one-size-fits-all experience.

Lunn explains that there are various homesteading models. These can range from fully modern homes situated conveniently near towns to completely off-grid cabins far from amenities.

Some buyers expect to go fully self-sufficient right away, while others take a more gradual approach.

“Sustainability and self-sufficiency are relative terms,” Lunn notes. “For some, being self-sufficient is just growing tomatoes on their porch, while others may want a full garden.”

Moving off-grid often comes with a steep learning curve, especially for those transitioning from urban environments.

“Yes, you can do it, but I often advise clients to start with grid-connected properties and gradually transition to off-grid setups,” Lunn suggests.

She also warns that those pursuing off-grid lifestyles need to mentally and physically prepare for the challenges involved.

“People can burn out quickly because it’s a lot of work,” she notes. “Everyone has different limits.”

Families, especially those with young children, might want to assess how much time they can realistically dedicate to farming or setting up hydroelectric systems.

Many brokers believe that urban dwellers aspiring to homestead often underestimate the impact of rural life, especially regarding isolation.

Lunn recounts a client from a large city who wanted to find “the most remote property.” After a long drive through the countryside, the client reconsidered, saying, “Maybe this isn’t as ideal as I thought.”

From Urban Life to Rural Serenity

There are numerous motivations for buying a home in rural areas. Some seek privacy; others want to put their survival skills to the test. For many families, it’s crucial to provide children with an opportunity to grow up outside of constant screen time.

“They’re after a more tactile experience—playing outside, nurturing animals, and getting away from screens,” says Lunn.

Recently, she helped a Chicago family purchase a 20-acre ranch just outside Missoula, MT, a city with a population of 78,000 that offers amenities like an airport and hospital.

The family, who vacationed in Western Montana for years, felt an immediate connection to the area. Initially, they faced budget constraints, but after a more successful year, they acquired the property for $850,000. It features a modest home, open fields, gardens, grazing land, and even chickens left behind by the previous owners.

“They’re thrilled,” Lunn shared. “There’s still a lot to do, but they love it.”

Since moving in, they’ve added pigs and are collecting eggs, with plans to get cows and horses.

Importantly, the buyers were less concerned about the size of the house. They valued aspects like access to water sources suitable for off-grid living, as well as proximity to a reputable school and reliable internet for remote work.

Proceed with Caution

However, even with the best intentions, adjusting to a simple lifestyle can present challenges.

Lunn notes that harsh winter climates in areas like Western Montana can be tough on newcomers, sometimes driving them away.

“The reality can be a wake-up call. Winters can be long and cold,” she advises.

For many urban dwellers, the dream of leaving city life behind to embrace country living in places like Montana can clash with reality. For some, the reality check comes in the form of grueling winters.

Others find solutions like becoming snowbirds, spending winter elsewhere before returning to their rural homes in the warmer months.

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