A growing number of grandparents are relocating to southern states, often referred to as “baby chasers,” to be closer to their families. This trend, highlighted in a recent Wall Street Journal article, is reshaping population patterns across the U.S. and creating new opportunities—and challenges—for local economic development. For southern states and family-friendly communities, this migration signals the need for multi-generational planning that prioritizes connectivity, services, and inclusivity.

Grandparents moving to be closer to their grandchildren bring unique strengths to local economies. They often represent a stable, relatively affluent demographic with disposable income to support local businesses. Many remain active in their communities, contributing through part-time work, volunteerism, or philanthropic efforts. They can also ease childcare burdens for their families, enabling younger generations to pursue full-time careers and boosting workforce participation.

However, their presence also creates a new set of demands for local governments, businesses, and planners to address. From housing needs to healthcare access and transportation, communities must adapt to accommodate an aging yet active population.

The migration of grandparents highlights the importance of planning for a multi-generational population. Communities must expand healthcare infrastructure, create senior-friendly housing options, and develop leisure activities for older residents. At the same time, amenities for working-age families and children, such as schools, parks, and child-friendly activities, must remain robust to ensure a balanced local economy.

Housing Dynamics Retirees moving into family-friendly neighborhoods drive up demand for housing. This creates opportunities for mixed-use developments, retirement communities, and accessory dwelling units (ADUs). However, rising property values may lead to affordability challenges, particularly for younger families. Cities must carefully manage growth to balance these competing pressures.

Economic Diversification Retirees bring stable spending patterns that benefit local businesses, but communities must avoid over-reliance on this demographic. A thriving economy requires a diverse population, including younger, working-age residents who contribute to job growth, entrepreneurship, and long-term sustainability.

Workforce and Volunteer Engagement Grandparents moving closer to family often remain active contributors to their communities. Part-time work, flexible employment, and volunteer opportunities can tap into this demographic’s potential. Their presence also supports younger generations, especially by providing childcare, which enables parents to participate in the workforce more effectively.

Infrastructure and Mobility An aging population requires investments in accessible infrastructure. Public transportation, pedestrian-friendly streets, and senior services like paratransit will be essential to ensuring older residents remain active and engaged in their communities. These investments also benefit the broader population, creating more livable and connected neighborhoods.

Community Connections Grandparents bring a sense of stability and connection to the places they move. Their involvement in civic life, social activities, and community programs enriches the fabric of local communities. Cities that invest in fostering these connections through inclusive programs and activities will see greater social cohesion and quality of life for all residents.

The Local Economic Development Takeaway

The “baby chaser” trend highlights the importance of creating places where people of all ages and stages of life want to be. Southern states experiencing this migration boom have a unique opportunity to balance the needs of retirees and working families. Thoughtful planning for housing, infrastructure, and services will be critical to ensuring long-term economic and community sustainability.

This isn’t about catering to one group over another—it’s about recognizing that vibrant communities are multi-generational and interconnected. By embracing the energy and stability that grandparents bring while also supporting younger generations, cities can create thriving, resilient economies that work for everyone. From ivory towers to Main Streets, the lesson is clear: successful economic development starts by understanding and adapting to the people who choose to call your community home.