In an era of high unemployment and limited opportunity, more Americans are taking matters into their own hands and going to work for themselves out of their homes.

Normally small businesses have led the way during economic recoveries, but this time around they’re not creating many jobs. Instead much of the growth we are now seeing is in “lone eagle” businesses, to borrow a phrase from Phil Burgess, often operating out of the worker’s residence. This reverses the trend from 1960 to 1980, when there were steady reductions in the number of people who worked at home. Indeed, despite all the talk of increased mass transit usage, the percentage of Americans working at home has grown 1.5 times faster over the past decade; there are now more telecommuters than people who take mass transit to work in 38 out of the 52 U.S. metropolitan areas with more than 1,000,000 residents. Read more

Barrels of ink and money have been devoted to predictions of where Americans will migrate, particularly younger ones. If you listen to big developer front groups such as the Urban Land Institute or pundits like Richard Florida, you would believe that smart companies that want to improve their chances of cadging skilled workers should head to such places as downtown Chicago, Manhattan and San Francisco, leaving their suburban office parks deserted like relics of a bygone era.

A close look at recent migration data shows that a significant number of younger people do indeed prefer urban life and can endure, temporarily at least, the high housing costs that go with it. However, the data also show that as they age, Americans continue, in general, to shift to suburbs, and later smaller communities, looking to buy homes and start families. Read more