Nearly all major conflicts across the globe, both current and historical, are characterized by individuals defining themselves and others by group membership. This existence of group-biased behavior (in-group favoring and out-group hostile) has been well established empirically, and has been shown to be an inevitable outcome in many evolutionary studies. Thus it is puzzling that statistics show violence and out-group conflict declining dramatically over the past few centuries of human civilization. Using evolutionary game-theoretic models, we solve this puzzle by showing for the first time that out-group hostility is dramatically reduced by mobility. Technological and societal advances over the past centuries have greatly increased the degree to which humans change physical locations, and our results show that in highly mobile societies, one's choice of action is more likely to depend on what individual one is interacting with, rather than the group to which the individual belongs. Our empirical analysis of archival data verifies that contexts with high residential mobility indeed have less out-group hostility than those with low mobility. This work suggests that, in fact, group-biased behavior that discriminates against out-groups is not inevitable after all.