From increased spending at neighborhood businesses to renovated and rehabilitated buildings, THRIVE Coworking’s latest white paper, The Power of the Hybrid Economy, details how remote work is stimulating growth in smaller markets.
It’s no surprise that small cities dominate Best Place to Live lists. No one doubts the cultural heft of New York City and Los Angeles, but affordability and quality of life issues make places like Bozeman, MT, and Greenville, SC, clear winners. These smaller markets have seen an influx of new people, joining longtime residents who have been staying put with remote-work opportunities. It has led to increased local spending and more robust tax bases, creating economic growth, a more diversified local economy, and greater cultural investments.
It’s clear the hybrid economy and coworking benefit more than just individual companies or employees — they boost local economies, too.
According to The Commuter Town Boom, a report created by IWG and Arup on the impact of hybrid work on smaller cities and suburbs: “All of this increased spending is not only good news for local businesses but also for local job markets. In the U.S. … it would offer security to around 10,400 existing local face-to-face jobs per town, while also creating between 335 and 696 new full-time jobs in face-to-face industries in each town by 2043.”
Coworking spaces also frequently rehabilitate historic or underused buildings, spurring urban renewal and increasing property values. And those newly revamped spaces attract a diverse range of professionals who create a collaborative community that shares resources and knowledge. These hybrid workspaces are incubators for entrepreneurship and innovation, leading to new businesses and job opportunities.
- Up to 60%: Increase in number of white-collar workers in smaller towns over the next 20 years
- $270–$585 million: Increase in local annual spending by residents who switch to hybrid work
- $103-$207 million: Increase in face-to-face spending from the arrival of new hybrid workers from big cities
- $373-$792 million: Total of increased local spending
- 10,400: Number of existing jobs that spending could secure per city
- 335-696: Number of new full-time jobs created in face-to-face industries per city
- Up to 3%: Growth in GDP of smaller communities
The shift to hybrid work is more than a workplace revolution—it’s an economic game-changer for smaller cities and towns. As workers embrace flexible arrangements and relocate for better quality of life, these communities reap the benefits of increased spending, job creation, and urban renewal. From revitalized buildings to thriving local businesses, the hybrid economy fosters sustainable growth and lays the foundation for stronger, more resilient local economies.
Explore more about how remote and hybrid work are shaping the future in The Power of the Hybrid Economy. This white paper delves into the data, providing insights on how smaller markets are not just surviving but thriving in this new era.
