Zoom Towns
Let’s start with one assumption. Most Americans work in jobs that will require them to eventually return to the office or some sort of physical location. Many are working on location now because they are “essential” (healthcare workers and firefighters) or because they have some type of service function associated with their job (custodial, delivery or security). Cushman & Wakefield CEO Brett White said recently in Fast Company that 90% of office using workers will eventually be….back in the office.
However, a small segment of the workforce is uniquely situated to work remotely in the emerging “dynamic workplace” most of the time. For those knowledge workers who (a) have control of their schedules and (b) are usually highly compensated, an interesting new trend is developing: Zoom Towns. These are small, pretty locals that suddenly have a pep in their step. And the a torrent of inbound knowledge workers, high powered consultants, lawyers, technologist and other experts are discovering remote locations — almost en mass.
These Zoom Towns are burgeoning bucolic locations that were previously seen as too remote for many in the prime of their careers. Most viewed them as vacation locals before Covid. Examples include Lake Tahoe, the Hamptons, Bend, Oregon and Butte, Montana. Forbes reports these towns as some of the tops in terms of Zillow traffic.
If you think about it, the rapid advance of cost-effective and reliable tech communications tools is transforming how some knowledge workers work. Video platforms will continue to improve quickly and I’m sure a whole host of new technology is being invented right now during this incredible time.
Maybe a whole new life waits for some who have the inclination, expertise and the means to pull up stake.
Small Town Life: It Ain’t Cheap And Check the WiFi
But small town life may not be all it’s cracked up to be. According to Bloomberg and Zillow data, the Hamptons experienced a 25% increase in price and Lake Tahoe is up 50%. Also, these remote locations may or may not be able to handle the huge increase in telecom and cell phone usage. I taught a virtual class last week and one of my co-faculty was located in a Colorado ski town. Bandwidth is constantly an issue, he reported.
A Business Insider article authored by Erin McDowell reported on going the other way: she moved from a small town to New York City. Erin points out that for many big town dwellers there can be a real culture shock to moving to a small town. Restaurants can be sparse, and you might have quite a little drive to the grocery store — don’t forget the milk.
I’m also hearing anecdotal reports that all sorts of businesses are getting backlogged in these small communities from contractors to plumbers. So, look before you leap.
Other Factors
As I talk to executives around the country, they are all intensely interested in the topic of Zoom Towns. Some talk wistfully about their personal desire to move to their own private Idaho. But others wonder about leadership and economic issues.
For example, should high power knowledge workers earning big coin in SFO or Manhattan be offered less of a salary if they move from very expensive housing markets to much less so? If the wages stay the same, is it “fair” that they effectively get a huge economic bonus while others who are tethered in the big city?
Corporate leaders also worry about culture when some of their top performers are mostly or entirely remote (after Covid, of course). They talk about mentorship in a remote environment and wonder how things will work in 2021 and beyond.
The Great Covid Experiment
What an interesting time. For all of history before now people had to live where they made their income. Miners lived near mines, farmers lived on farms and factory workers lived near the plant. For a certain demographic, the current disassociation of where you live and how you make your living will be an interesting trend to watch.
“If remote work becomes a bona fide long-term option especially with the pandemic, that could reshape the U.S. housing market by opening up homeownership to people renting in expensive parts of the country,” said Zillow economist Jeff Tucker on the Zillow site. “However, it’s unclear how many people would make the move to buy their first home. Proximity to work is just one of the factors people consider when choosing where to live. Other factors may keep them from moving including proximity to friends and family, cultural and natural amenities, and their kids’ schools.”
Zoom On
So, Zoom Towns will certainly help micro economies of small towns grow quickly. They will help many small businesses such as restaurants and the aforementioned contractors and plumbers in those areas have some record years. And this will be an interesting experiment for the individuals and the families of those able to pull it off.
But corporate America is watching this trend with some trepidation. They love their top performers and know they are gone on business travel in normal times. Having them gone nearly 100% of the time as a default could be challenging.
The Zoom Town in-migration will be fascinating to watch over the next couple of years. The philosophy of office use is changing faster than at any other time of my career.
I’m not planning to move anywhere extremely remote. But if you do, I hope you’ll let me crash in your spare bedroom. I’ll bring news of the big city and of course some great wine. We can catch me up on all the small-town gossip you are sure to hear.
And ironically, we won’t have to use Zoom for a discussion, for once.
