The Richmond Federal Reserve Bank has been actively engaging with small towns across the Fifth District to understand and address economic challenges. At the "Investing in Rural America Conference" held at The Hotel Roanoke & Conference Center in Roanoke, Virginia, a focus was placed on the unique challenge of growth faced by rural communities.

The narrative surrounding rural areas post-Great Recession has often been one of population decline due to limited opportunities. However, recent data indicates a shift, with some small towns experiencing population growth. Between 2020 and 2023, 27 percent of rural counties in the Fifth District began to grow, compared to only 3 percent in the previous decade.

A significant factor contributing to this growth is proximity to large metro areas. Many exurbs within commuting distance have benefited from urban dwellers seeking more affordable housing options and larger living spaces during the pandemic. This trend has been supported by hybrid work policies that expanded commuting possibilities.

Affordable housing availability is crucial for these growing communities. Developments along major corridors like I-95 east of Raleigh offer homes priced below city averages, attracting new residents. Political support for such developments is essential as local policies can either facilitate or hinder growth.

In addition to exurbs, towns with natural or crafted amenities are also seeing growth. Locations near natural attractions or those investing in community-focused amenities attract both retirees and working-age populations. For instance, Warsaw in Virginia's Northern Neck credits its recent growth to residential development focused on worker housing.

Wilson, North Carolina serves as an example of building amenities through investments in public spaces and transportation services aimed at enhancing livability for workers.

For towns not near large cities or lacking natural attractions, job attraction remains a viable strategy. Communities succeeding in this area are focusing on workforce investments alongside traditional incentives. Florence, South Carolina exemplifies this approach with regional cooperation and community college programs supporting talent development.

Salisbury, Maryland highlights another successful model with job growth initiatives supported by entrepreneurship centers and workforce training programs while investing in infrastructure improvements like high-speed internet.

The conference emphasized that sustainable growth requires long-term commitment from community leaders who must build trust and navigate funding systems effectively. Attendees were encouraged to continue sharing insights and innovations beyond the event's duration.