For years, Kentucky’s rural counties were losing population and jobs — a quiet trend that shaped everything from schools to small-town economies. But new data shows a turning point. According to the Blueprint Kentucky Rural Economy Report (October 2025), more than half of the state’s rural counties saw population growth between 2020 and 2024, marking the first sustained rebound in over a decade.
What’s Driving the Growth
The report identifies three key factors fueling this change:
Remote and hybrid work. Nearly one in five new rural residents now work remotely — a direct outcome of post-pandemic workforce shifts. Rural broadband expansion and flexible work policies have made it easier for families to relocate from crowded metro areas.
Local business investment. Community-based entrepreneurship programs and small-business incubators have strengthened local economies, particularly in central and eastern Kentucky. Many counties report higher business formation rates than they did before 2019.
Quality of life. Affordable housing, open space, and community ties are drawing families back. “Rural Kentucky offers what many people are looking for right now — connection, affordability, and belonging,” said Sarah Frank Bowker, managing director of Blueprint Kentucky.
The Numbers Tell the Story
52% of rural counties gained population from 2020 – 2024.
Remote work employment in rural areas rose 19% statewide.
Entrepreneurial activity — measured by new business registrations — increased 14% compared to pre-pandemic averages.
Top-growing regions: Central Kentucky (surrounding Fayette, Madison, and Jessamine Counties) and Western Kentucky’s Lake Barkley corridor.
Challenges Ahead
The report notes that not every county is sharing in the rebound. Many still face limited housing, childcare shortages, and healthcare gaps that make growth hard to sustain. Broadband access has improved, but quality and affordability still lag in parts of the state. Blueprint researchers caution that investment must match momentum: “Growth is only meaningful if it’s equitable and lasting,” said research director Simona Balazs.
What It Means for Lexington & Surrounding Communities
Lexington sits at the center of this story. The city continues to draw talent, but its neighboring rural counties — Scott, Madison, Clark, Bourbon — are where much of the new population movement is happening. These areas are seeing new home construction, stronger small-business activity, and an influx of remote workers seeking balance between open space and city access.
The more Lexington supports rural vitality through partnerships and regional planning, the stronger the entire Bluegrass economy becomes.
Why It Matters for Community & Connection
Lexington, as a regional hub, plays a role in supporting growth across Fayette and surrounding counties. If rural growth succeeds, it can mean stronger regional economies, more diverse local markets, and new audiences for arts, food, and services. Paying attention to what’s happening beyond city limits helps us all plan better.