Having been born and raised in a rural community known predominantly for farmland and its Amish neighbors, I’ll be the first to tell you that yes, rural communities can be an acquired taste for some, but they’re also home to experiences and amenities most wouldn’t even consider.
My hometown isn’t known for having any giant tech companies in it to help bolster the local economy. It’s not really considered a prime tourist destination, and it’s the kind of place where it isn’t super feasible to get by without a car.
What it does have in spades is a sense of community. It has small companies that have been run for decades by families and passed on to the next in line ready to take on the business. It’s got a sky at night with visible stars everywhere you look that aren’t lost to light pollution, and the sounds of cicadas and crickets that aren’t muffled by copious amounts of traffic.
Embracing remote work has the opportunity to benefit these small towns and rural communities, just like the one I grew up in. Here’s how.
Table of Contents
- Remote work can help with rural community population
- Remote workers contribute to the economic growth of rural communities
- Enhanced community engagement
- Remote work can be a major boon to rural communities
Remote work can help with rural community population
Rural communities are typically known for having smaller populations – that’s part of what gives them that designation in the first place. They also tend to have an older population.
According to the National League of Cities, basing their analysis on available US Census Bureau data, the average age of those in rural communities is approximately 51 versus an average age of 46 in more urban communities. Not only are there fewer people in these towns, but the ones that are there are aging.
So how does remote work help with population?
Rural communities can retain remote workers
When I first started my career in digital marketing I drove across the country from my little town in Pennsylvania to sunny San Diego California. Why? Because San Diego was home to big digital marketing agencies, and California is known for being a hub for tech workers.
My experience – while certainly transformative and one I greatly appreciate – is exactly the kind of thing that happens all the time. Unable to find work in their desired fields within their rural hometowns, workers are likely to go where the jobs are.
Granted, most won’t go clear to the opposite side of the country to do so, but they’ll leave their towns in the process.
What does that mean for the town?
- Less local income tax collected
- Reduction in money spent with local businesses
- Fewer potential volunteers for things like school boards, fire departments, etc.
- Fewer children replacing an aging population if these people don’t come back
While I strongly believe that – from a personal growth perspective – it’s important and worthwhile to leave your hometown and experience somewhere different, the truth of the matter is that rural communities can suffer when their population leaves for job opportunities elsewhere.
In addition to outright moving, eliminating the need for a commute to a neighboring larger city increases the odds that a local resident will stay where they are. The US Census Bureau conducted an analysis citing the average one-way commute to work as 27.6 minutes.
An hour per day of driving isn’t exactly tragic (it does add up over a year), but the truth of the matter is that this statistic is only really applicable when your local community is capable of providing a job for you; in my case, and the case of many others, the type of job I was looking for simply wasn’t available locally.
Long commutes as a necessity for a job in your industry simply aren’t sustainable, and over time many will make it a goal to ultimately move closer to their job to reduce this commute.
Remote work offers these people the chance to stay where they are, and as a result, benefit the community they’re a part of.
Remote work can increase a rural population by drawing in new people
While I did leave my hometown to land a job in the industry I wanted to be in, only a few weeks after my boss offered me the opportunity to work remotely I packed up my things and drove back home.
Why?
- I could buy a house in rural Pennsylvania for significantly less than I’d spend in rent for a studio apartment in San Diego
- My family and friends were back home, and making new friends as an adult is trickier than it seems
- The cost of living in my rural town stretched my paycheck much further than it would have gone in California
These things aren’t unique to me; they’re scenarios anybody working in a city would experience by moving.
According to Zillow at the time of publication, the median rent price in New York, NY is currently $3,300. The median rent price in my hometown, Ephrata PA, is currently $1,125.
That’s a $2,175 – or almost 300% – difference.
There’s a clear financial incentive for workers to consider this route, but the small towns they move to benefit from the increased population too. Forbes reports some of these communities are realizing it as well with some going as far as offering relocation benefits to those that move.
Remote workers contribute to the economic growth of rural communities
Remote workers contribute to the economic growth of rural communities in a few primary ways: local spending, taxes, property values, and increased tourism.
Local spending
Small towns and rural communities are often known for their locally-owned shops and small businesses. The great thing about these kinds of shops is that you’re typically supporting a family, or a local entrepreneur when you patron them.
Unfortunately, sustained business in rural communities can also be difficult to maintain.
In my hometown it wasn’t at all abnormal to see this cycle play out on the main street of our little town; a new business sets up shop, the locals get excited, business seems good for a few years, and then the business shuts down. This cycle repeats itself over and over again through the years leaving one or two businesses along the way that actually make it and stick around.
There are a few reasons why this is the case:
Large competitors moving into the area: Big and established businesses can wreak havoc on a local community from the business side of things. My town used to have tons of little shops catering to specific niches, and then Walmart moved in. A string of business shutdowns followed over the years as people elected to go to one place (at prices local shops couldn’t beat) as opposed to several different ones to get everything they needed.
This effect isn’t a one-off thing, or something unique to my particular hometown either. Puget Sound Sage conducted a study that concluded a net loss of $13 million of net economic output and $14 million in lost wages over the 20-year life of a Walmart store for the local neighborhoods they’re built in. Bloomberg similarly covered this effect too.
Lack of local spending: A business can only stay in business as long as people are spending money at it and utilizing its services. We often joke that the main street of our town was destined to become a string of thrift shops. Why? Because that’s that’s what the local residents supported. New restaurants and stores could set up business on this strip, but time and time again they’d get a flux of customers in the opening weeks and months that’d slowly trickle away over time. This leads to reduced revenue for the businesses, and the cycle repeats itself.
The addition of remote workers to these communities can be a salve for some of the issues otherwise faced with local spending issues.
Consider the idea that remote work, which is predominantly offered in the tech space, can ultimately bring a Silicon Valley salary to a town that doesn’t otherwise have many opportunities to offer that type of job – or its salary – to local residents.
This salary will likely be spent on local amenities and the smaller businesses that occupy the town. When spending at these businesses increases it becomes easier to keep the business running, which in turn reduces the business failure rate, and a new cycle is created.
Tax benefits
While taxation is bound to be a heated topic in many circles, it’s ultimately capable of making quite a difference for rural communities. Remote workers contribute to local taxes just as other residents do, and this in turn can offer benefits to the communities they’re in.
Increased local income taxes go to the town, which can be used for all manner of improvements, programs, and more. It can be used to help keep local library doors open, or help town amenities like parks and pools continue to function in a way that benefits residents.
Additional school taxes generated from remote workers have the benefit of impacting local public schools, which can otherwise face funding difficulties.
Additional funding for local schools goes further than you’d think. Walden University conducted an analysis that concluded lower funding in public schools can lead to worse student outcomes, fewer resources, and larger class sizes – none of which are beneficial for the futures of the children attending these schools.
Whether these taxes are coming from high-earners bringing Silicon Valley wages to the local community, or independent entrepreneurs freelancing to make their money, the point stands that they’re introducing new taxable income to a local economy that didn’t previously have it.
Increased property values
While everything that goes into calculating property value can make for a fairly complicated equation, it often can boil down to a pretty simple concept: the more demand there is for housing and property, the more valuable the existing housing and property get.
While some may view this as an action that can potentially shake up a local economy’s property values and price some residents out of participating, the truth of the matter is that the scale of remote workers moving into a rural community would have to be high enough to create scarcity, which likely wouldn’t be the case without some form of enormous spotlight (like those paid moving incentives) put onto the town in question.
When a happy medium is struck between new residents coming to the community on the hunt for housing, and demand for existing housing, property values for existing homeowners will see increases.
Higher property values offer quite a few benefits; some of which, cited by The Young Team, include:
- Homeowners see more equity created when the difference between outstanding mortgage and a home’s value increase
- Homes can be sold for higher sale prices; considering the older demographic in many of these rural towns, this can likely be a key part of a retirement plan
- Lower monthly payments are possible by means of refinancing, or canceling private mortgage insurance if present on the loan
Boost to local tourism
Many small towns and rural communities rely on local tourism opportunities to help the local economy. In some cases, it’s off-the-beaten-path attractions, and in others, it’s historic monuments or unique amenities.
In the case of my hometown it was a combination of our Amish neighbors, local farmers’ markets, and a few historical sites that got attention. We also have a yearly street fair that started back in the 1940s that typically sees the town flooded with visitors.
Remote workers help to boost this by spreading awareness. Whether it’s a positive experience shared on social media, or even having family and friends come to visit, the work from home population – particularly transplants – tend to have a network that reaches beyond the local community.
The resulting flow of visitors means increased revenue for local hotels and restaurants, gift shops, amenities, and can maybe even result in more future transplants.
Enhanced community engagement
One of the biggest perks of remote work is often its flexibility when it comes to the hours people work. While some jobs require strict working hours, many seem to be pivoting towards a model that’s focused more on the volume of work getting done as opposed to the hours spent getting that work done.
With this flexibility comes freedom; many use this freedom to have a more productive lunch break that consists of running some errands, or getting some exercise in. Others may be drawn to more charitable initiatives.
This increased flexibility allows for more community engagement opportunities, some of which may include:
Running for local office: School boards and local office positions typically require a time investment that many struggle to meet. Remote workers may have the time available to contribute in this fashion.
Volunteering: Whether it’s a quick walking of dogs at an animal shelter, or volunteering for the local fire department, remote workers can make a significant difference by utilizing their flexible schedules to help out in these places that typically struggle for volunteers.
Local cleanup projects: Maintaining the beauty of these rural towns and communities tends to be somewhat of a community effort, one that often requires people willing to chip in and help out. Remote workers may find themselves in a position to help out in this way without interrupting their regular flow of work.
These contributions all tend to be positive in nature, and their impact adds up over time – particularly in cases where it’s already difficult to find people to contribute to these initiatives.
Remote work can be a major boon to rural communities
In conclusion, remote work has the potential to play a significant role in supporting rural communities. It can help to reverse population decline by retaining existing residents who would otherwise move away and attracting new ones. By providing job opportunities that allow people to work from anywhere, remote work can help to create a more diverse and resilient local economy, increasing local spending, tax benefits, and property values. It can also encourage community engagement and involvement by allowing people to work on local projects and initiatives without having to relocate to urban areas.
However, remote work is not a silver bullet solution to all the challenges that rural communities face. It is important to recognize that not everyone has equal access to the infrastructure and resources needed to work remotely, such as reliable internet connections or suitable workspaces. Additionally, remote work may not be a suitable option for everyone, as some people may prefer the social and collaborative aspects of working in an office environment. Therefore, it is essential to continue to invest in infrastructure and resources to support remote work in rural areas, as well as providing training and support to help people adapt to this new way of working.
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