Remote workers reshaped small towns across America during the pandemic.
Today, these "Zoom towns" have taken unexpected turns.
Why it matters: What's happening in these communities reveals important housing trends for buyers and sellers alike. As remote work policies stabilize, these markets offer insight about lasting changes in how Americans think about "home."
The cooling effect
Bend, Oregon, once a poster child for pandemic migration, has seen its market return to earth.
"The Bend market has cooled considerably since the peak of the 'Zoom Town' era," said Jesse Russell, Founder & CEO of Hiatus Homes. "In 2020–2021, we saw a flood of new residents moving from major metro areas, often with significant home equity and remote jobs."
That flood created unsustainable price growth. Now, with higher interest rates, the market has found a new equilibrium — still desirable but no longer frenzied.
By the numbers:
Bend's median home price rose from $400,000 in 2020 to over $800,000 today
Many former Zoom towns have seen price plateaus or modest decreases after 30-40% pandemic-era jumps
Interest rate hikes have slowed transaction volume in these markets
New buyers, new priorities
The people buying in Zoom towns have shifted dramatically.
"During the peak, many of our buyers were cash-rich remote workers looking to relocate from places like San Francisco, Portland, or Seattle," Russell said. "Today, while design and sustainability are still key, price sensitivity has increased sharply."
This change reflects the broader transition from a market driven by lifestyle migrants to one balancing local needs with continued outside interest.
Small is the new sensible
The housing affordability crisis has pushed builders nationwide to think more creatively about cost-effective construction and smaller, smarter footprints.
Hiatus Homes specializes in creating cottage cluster communities in Bend, with energy-efficient small homes built around shared spaces and walkable neighborhoods.
Russell, who previously worked on the TV show "Tiny House Nation," returned to his hometown to develop these intentional communities after recognizing the potential of small-footprint housing.
What it means: These small-footprint homes represent a significant shift in American housing. For generations, the trend was toward ever-larger homes. Now, price pressures have builders thinking smaller.
"Small-footprint homes—especially in walkable, community-focused developments—offer a solution by making ownership more attainable without sacrificing quality of life," Russell said.
Government catching up
Cities that once resisted density are increasingly embracing alternative housing models.
"The housing crisis has forced a rethinking of the status quo," Russell said. "Cities like Bend are starting to embrace cottage clusters, reduced parking requirements, and streamlined approvals for middle housing."
This regulatory shift is happening nationwide, with cities from Austin to Minneapolis reducing barriers to building smaller, more affordable homes.
The outlook
Are small homes just a temporary response to high prices, or a lasting change in American housing?
"I think we're approaching a tipping point," Russell said. "While small, sustainable homes are still perceived by some as niche or lifestyle-driven, the economic and environmental pressures are pushing them into the mainstream."
The permanence of this shift depends partly on how remote work policies continue to evolve. With many companies settling into hybrid models, Zoom towns have transformed from pandemic boomtowns into something more sustainable.
The big picture: Zoom towns haven't disappeared, they've matured. The wave of migration might have receded, but these communities have been permanently changed. What remains is a housing market that increasingly values efficiency, sustainability, and flexibility — priorities that align with smaller homes in desirable locations.
For today's homebuyers, these evolving markets represent housing's new reality. The pandemic didn't just change where we can live, it fundamentally shifted what we expect from our homes and communities.
