In 2020, the U.S. and the entire world witnessed a seismic shift toward remote work, accelerated in large part due to the COVID-19 pandemic. This shift has impacted the experience of the full-time worker, further boosting the population of American digital nomads. Before the pandemic, only about 7 percent of U.S. workers worked full-time at home. Yet, according to a Stanford University study conducted this summer, the number is now approaching half of all workers. In July 2020, 42 percent of American workers reported working from home full-time. The population of digital nomads in the U.S. also rose dramatically—with an increase of nearly 50% from 2019.
Digital nomads are defined as people who choose to embrace a location-independent, technology-enabled lifestyle that allows them to travel and work remotely, anywhere in the Internet-connected world. Unlike regular remote workers, who tend to stay in one geographic area, digital nomads travel and explore while working. The MBO Partners’ 2020 State of Independence research study found that 10.9 million American workers currently describe themselves as digital nomads, an increase of 49 percent from 2019.
Digital nomads defy a single definition, but all meet certain criteria, namely that they combine working remotely and traveling for various reasons and lengths of time. Some digital nomads travel for years, regularly moving across countries and continents. Others are nomadic for shorter periods, taking “workcations” and working sabbaticals lasting from several weeks to many months. Some travel the globe, but many never cross a border, choosing instead to live and work while exploring a single location or country. United by a passion for travel and new adventures, digital nomads enjoy the ability to work anywhere they can connect to the Internet.
The COVID-19 pandemic resulted in major changes in the make-up of digital nomads. The biggest shift is that traditional job holders have been unleashed from their offices and many, instead of staying in one place, are taking to the road. In 2020, the number of traditional workers working as digital nomads grew 96 percent, from 3.2 million to 6.3 million. The number of digital nomads who are independent workers (freelancers, independent contractors, etc.) also increased, but by a relatively modest 12 percent. Independent workers already had substantially more location freedom than traditional job holders, so the impact of COVID-19 on where they worked was less pronounced.
COVID-19 also impacted the demographic mix of digital nomads. The share of Baby Boomers fell from 27 percent of digital nomads in 2019 to just 17 percent in 2020, and Gen X’s share fell from 25 percent to 22 percent. This was likely due to older workers being more concerned about COVID-19 and their greater risk of serious illness, making them temporarily less interested in a nomadic lifestyle and more comfortable staying at home. The younger generations, Gen Z and Millennials, increased their share from 48 percent to 62 percent.
Digital nomads work in a wide variety of fields, including information technology, education and training, consulting, coaching, and research, sales, marketing, and PR, and creative services with other fields represented relatively equally. The unifying theme of these professions is that they can be performed remotely using digital tools and the Internet. From a gender standpoint, more men pursue digital nomadism than women, with a 59 to 41 percent split, consistent with 2019 results. The racial make-up of digital nomads mirrors the U.S. population.
Most digital nomads report being highly satisfied with their work and lifestyle. Although many plan to be nomadic for less than one year, just over half report they plan to continue as digital nomads for at least the next two years. Independent or self-employed workers are also much more likely to report planning to continue as digital nomads for at least the next two years than compared to traditional workers.
To help stretch their income, many digital nomads work from places with relatively low costs of living. At the same time, they often virtually serve customers in higher-wage labor markets. Combining low-cost living with earning income at the wage rates of higher-cost locations, they’re able to take advantage of what’s known as geoarbitrage. In prior years, this has meant working from low-cost countries like Thailand, Costa Rica, or Vietnam while serving customers in the U.S. This year, however, due to COVID-related travel restrictions, this has meant traveling from higher-cost cities like New York and San Francisco to lower-cost areas in the U.S. Cities like Boulder, CO, and Austin, TX as well as resort areas like Boca Raton, FL, and Bozeman, MT.
COVID-19 has changed what it means to be a digital nomad. International flight and travel restrictions have made it harder to travel abroad, while health and healthcare concerns have also made travel less attractive. Because of this, only 1 out of 4 American digital nomads said they plan to travel internationally over the next year. Instead, a majority are exploring the U.S. Most are also reporting they plan on visiting fewer locations but spending more time at each stop.
In 2020, the VanLife movement emerged, where digital nomads travel in vehicles that have been converted into roaming residences. About 17 percent of American digital nomads are part of this trend, making it a notable segment of the nomadic population.
Marbella: The Go-to Destination for Digital Nomads
In recent years, Marbella has emerged as a hotspot for digital nomads seeking a perfect blend of work and leisure. Nestled on Spain’s sun-soaked Costa del Sol, this city offers a rich blend of cultural history, beautiful beaches, and a cosmopolitan lifestyle. Beyond its obvious attractions, the rise in the city’s popularity among the digital nomad community is largely attributed to platforms like MarbsLifestyle.com. This comprehensive platform has become the go-to resource for digital nomads, guiding them to the best of what Marbella has to offer. From upscale restaurants in Marbella serving Mediterranean delicacies to luxurious rental apartments with breathtaking sea views, and from quaint boutique hotels to trendy co-working spaces, MarbsLifestyle.com ensures that digital nomads find everything they need to make their stay productive, comfortable, and enjoyable. As Marbella continues to cement its position on the digital nomad map, platforms like these play a pivotal role in fostering a community spirit and ensuring nomads can easily navigate and settle into their temporary Mediterranean home.