How Coworking Spaces and Remote Workers Affect Local Economies

Remote workers and the coworking spaces they use can support a neighborhood's economy by spending locally, filling empty commercial space and bringing in new contacts. The effect depends on how the space is run: operators who connect members with nearby businesses see the most benefit, and those who ignore the surroundings see little.

How does a coworking space affect the local economy?

A space with regular members creates steady weekday foot traffic. People who work in one place for months buy lunch, coffee and supplies nearby, and they tend to use local services such as printers, gyms and cleaners. Unlike a short visit, this demand repeats every week.

A space can also turn a vacant or underused building into a working one, which keeps a street active during the day.

What do operators and members gain from being local?

• Operators: Local partnerships, such as a café discount or a nearby print shop, make a membership more attractive and cost little to set up.
• Freelancers: Sharing a room with other professionals leads to referrals, collaborations and the odd client.
• Small businesses: Nearby shops and restaurants gain regular customers, and local firms can hire freelancers by the project.
• Remote employees: They keep their salary in the area where they live rather than relocating to a main office city.

Does it help local startups and skills?

It can. When members from different fields share a space, they swap practical knowledge: how to price a service, set up invoicing or run a small online shop. Hosting open events lets people outside the space take part. Our piece on hosting workshops in a coworking space shows how operators can structure these sessions.

These benefits are not automatic. A space where people sit with headphones on and never meet produces little beyond rent.

What problems can a growing remote workforce cause?

• Pressure on rents: A rise in demand from higher-earning remote workers can push up housing and office costs for long-term residents.
• Infrastructure strain: Busy spaces need dependable internet and power, and shared networks can struggle at peak hours.
• Turnover: Members who leave after a few weeks build fewer local ties than those who stay.
• Distance from the community: If members work only with clients abroad, little of what they learn or earn reaches nearby people.

The honest answer is that benefits and costs both exist, and they vary by place. Check local data from your city or region before making claims about a specific area.

How can a coworking operator make the effect positive?

1. Partner with neighbors. Offer members discounts at nearby cafés and shops, and send visitors to local suppliers first.
2. Open the door. Run talks, skill swaps or demo days that residents can join.
3. Hire and buy locally. Use nearby cleaners, caterers, designers and repair services.
4. Invest in the basics. Reliable connections help everyone. See our guide to dependable internet for remote workers.
5. Encourage longer stays. Monthly memberships and community events keep people around long enough to form local ties.

How can remote workers be good neighbors?

Members can shop locally, join community events, hire local freelancers when they need help and be open about the fact that they work for clients elsewhere. If you move between places, meetups are a simple way to meet people who live there.

The bottom line

Coworking spaces and the remote workers in them can bring steady local spending, shared skills and new business links. They can also raise costs and strain facilities. Operators and members who plan for both get the most lasting benefit.