Rural vs Urban: Where Are Home Prices Soaring?

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May 28, 2025

Rural homes are outpacing urban properties in price growth, but why? Explore the top regions and trends driving this shift...

Financial market analysis from 28/05/2025. Market conditions may have changed since publication.

Have you ever dreamed of swapping city chaos for a quiet countryside retreat? Maybe it’s the thought of open fields, starry nights, or just a bit more space to breathe. Whatever the draw, recent data suggests that moving to rural areas isn’t just good for the soul—it’s also a savvy financial move. Over the past five years, homes in rural regions have seen stronger price growth than their urban counterparts, a trend that’s turning heads among homeowners and investors alike. Let’s dive into why this is happening, where prices are climbing fastest, and what it means for anyone eyeing a property purchase.

Why Rural Homes Are Winning the Price Race

The shift toward rural living has been brewing for years, but it hit overdrive during the pandemic. People craved space—bigger homes, larger gardens, and a break from the urban grind. According to recent housing data, rural properties have seen a 23% price increase over the past five years, outpacing the 18% growth in urban areas. Even regions with a mix of urban and rural characteristics clocked in at 22%. It’s not just a fleeting trend; it’s a sign of changing priorities.

Think about it: the pandemic forced many to rethink their lifestyles. Remote work made it possible to live farther from city centers, and suddenly, a cottage in a village didn’t seem so out of reach. I’ve always found it fascinating how a global event can reshape something as personal as where we choose to call home. But what’s driving this growth now that the world’s settled into a new normal?

The Pandemic’s Lasting Impact

The surge in rural property prices didn’t just happen overnight. Back in 2021 and 2022, demand for rural homes skyrocketed as people sought room to breathe. Older generations, especially those over 55, led the charge, prioritizing peace and quiet over city convenience. While the frenzy has cooled, the preference for rural living hasn’t faded entirely.

The pandemic shifted priorities toward space and tranquility, a trend that’s still shaping property markets today.

– Housing market analyst

This shift wasn’t just about escaping crowded cities. It was about redefining what makes a home valuable. A larger garden, a home office, or even just a view of rolling hills became non-negotiables for many buyers. And as demand grew, so did prices—especially for certain types of properties.

Which Properties Are Leading the Charge?

Not all homes are created equal when it comes to price growth. Rural terraced properties have been the standout performers, with a 25% price increase between 2019 and 2024. Semi-detached homes in rural areas matched that growth, while urban semi-detached properties weren’t far behind at 24%. Detached rural homes saw a solid 21% rise, but urban flats? They lagged significantly, with just a 6% increase over the same period.

Why the disparity? Terraced homes in rural areas are often seen as the affordable entry point for buyers looking to escape urban life without breaking the bank. They offer charm, community, and often a small garden—perfect for first-time buyers or downsizers. Urban flats, on the other hand, face oversupply in some markets and less demand from those prioritizing space.

Top Rural Hotspots for Price Growth

Some rural areas are seeing truly impressive gains. Let’s break down the top performers in 2024, based on recent housing data. These regions aren’t just beautiful—they’re proving to be smart investments.

RegionLocal AuthorityAverage Price% Change (2024)
South WestTewkesbury£334,36111%
East MidlandsHarborough£356,46311%
South EastSouth Oxfordshire£484,3649%
ScotlandShetland Islands£191,0838%
EastEast Cambridgeshire£345,0418%

Tewkesbury, nestled near the Cotswolds, topped the list with an 11% price jump to an average of £334,361. Harborough in the East Midlands matched that growth, while South Oxfordshire wasn’t far behind at 9%. Even more affordable areas like the Shetland Islands and County Durham saw strong gains at 8%. These numbers paint a clear picture: rural areas are hot, and buyers are taking notice.

Who’s Moving Where?

So, who’s packing up and heading to the countryside? Recent surveys show that 63% of home moves stay within the same type of area—urban dwellers stick to cities, rural folks stay rural. But there’s a notable trend: 9% of movers are trading urban life for villages or hamlets, while only 7% move the other way. Age plays a big role here. Younger buyers (25–34) gravitate toward cities, likely chasing jobs or nightlife. Meanwhile, those over 55 are more likely to seek out rural tranquility.

A bigger property or garden was the top reason for moving, reflecting a race for space that’s still alive.

– Property market expert

It’s no surprise that detached homes are the top choice for rural movers, with 41% of buyers opting for them. Semi-detached homes come in second at 29%, while flats are far less popular, chosen by just 15%. This “race for space” isn’t just a catchy phrase—it’s a real shift in what people value in a home.


The Affordability Challenge

While rural price growth is exciting for homeowners, it’s not all rosy. A 23% price increase over five years can price out locals, especially in areas where wages don’t match the rising costs. Picturesque villages are charming, but when a terraced home costs as much as a city flat, it raises questions about accessibility.

In my experience, affordability is always the elephant in the room when it comes to property markets. Rural areas, often seen as budget-friendly, are starting to feel out of reach for some. This could lead to tension in communities where long-time residents struggle to compete with newcomers flush with city-earned cash.

Urban Flats: Why the Lag?

Urban flats, with their modest 6% growth, tell a different story. Demand for compact city living has waned as hybrid work models allow more flexibility. Why squeeze into a small flat when you can afford a house with a garden just an hour away? Plus, some urban markets are oversaturated with new builds, keeping prices in check.

Perhaps the most interesting aspect is how this reflects broader lifestyle changes. Urban flats used to be the go-to for young professionals, but now, even that demographic is eyeing greener pastures. It’s a reminder that property markets aren’t just about numbers—they’re about how we want to live.

What’s Next for Rural and Urban Markets?

Looking ahead, the rural-urban divide in price growth may narrow, but don’t expect it to disappear. Remote work is here to stay for many, and the allure of rural life—space, nature, community—continues to pull buyers. That said, urban areas could bounce back if infrastructure improves or city living regains its pre-pandemic buzz.

For now, rural properties remain a strong bet for growth, especially in areas like Tewkesbury or Harborough. But buyers should tread carefully—affordability issues and potential market corrections could shift the landscape. It’s a balancing act between chasing value and planning for the long term.

Tips for Navigating the Market

Whether you’re eyeing a rural retreat or sticking with urban life, here are some practical steps to make the most of today’s market:

  • Research local trends: Look at price growth in specific regions, not just national averages.
  • Consider your priorities: Do you value space over proximity to amenities? Be clear on what matters most.
  • Factor in affordability: Rising prices can stretch budgets, so plan for long-term costs like maintenance or taxes.
  • Think long-term: Rural areas may keep growing, but urban markets could rebound with new developments.

Ultimately, the decision comes down to lifestyle as much as investment potential. A rural home might offer peace and price growth, but urban living has its own perks—convenience, connectivity, and culture. Whichever path you choose, understanding these trends can help you make a smarter move.


The rise of rural property prices is more than a market blip—it’s a reflection of how our priorities have shifted. From the race for space to the allure of a quieter life, rural homes are stealing the spotlight. But with affordability challenges looming, the question remains: can this growth last? For now, the countryside is calling, and buyers are answering. Where will you make your next move?

Debt is dumb, cash is king.
— Dave Ramsey
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Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

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