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Historically, remote work has been an urban phenomenon (i.e., residents living in cities telework more often than those living in towns, suburbs, or rural areas) since there are often more jobs that allow for remote work in urban areas (Sostero et al., 2024). However, it is unclear whether this will continue to be the case. Due to more common forms of hybrid work, new linkages between urban and rural areas seem to be emerging.

Several international studies highlight these new flows and linkages. For example, Bürgen et al. (2021; 2022) studied hybrid workers in rural areas in Switzerland and found that participants emphasised maintaining linkages to urban areas, both for economic activity and social interaction. In their study on co-working spaces in rural Germany, Hölzel and de Vries (2021) suggest that, with the time saved from commuting to the office, “people could get more engaged in social commitments, contribute to associations or similar activities. Their presence in the rural town could thus be higher, [resulting] in more vitality and vividness in the centre of the village and small towns” (Hölzel & de Vries, 2021, 12). However, the authors emphasise that these remote workers engage in a multi-local lifestyle, noting that regular travel to cities is still relevant for the rural-based residents. Based on the study from Bürgen et al. (2022), it is not always likely that those working remotely in rural areas will be more invested in rural life. While linkages created from urban to rural are mainly personal and involve the individuals becoming embedded in local structures, their embeddedness has limited economic effects unless the participants work for a company located in a rural area. Those working remotely in rural areas maintain important connections to economic and social activity based in urban areas, thereby creating on-demand linkages or flows between urban and rural spaces (Bürgen et al., 2022). Finally, a 2023 OECD report using housing prices as a proxy for ownership demand showed that, although housing demand has extended outside of metropolitan areas, “we are not seeing a re-emerging preference for rural life as such, but rather an increased preferences for places that combine the benefits of both rural and urban life” (Ahrend et al., 2023, 1).

In the Nordic context, Eliasson (2023) shows that workers continuing to work in the city centre who relocate most often move to Stockholm’s suburbs (which was already the case before the pandemic). However, Eliasson found that managers and professionals with remote work potential in Stockholm were more likely to move outside of the Stockholm region—to medium-sized cities or smaller cities/rural areas—than their non-remote worker counterparts after the pandemic compared to before: “The counter-urban flows of city centre workers to smaller locations are fairly small in absolute terms, but the increase has been quite substantial” (Eliasson, 2023, 23).

See section above on “urban cores” for more on these migration patterns.

From a regional perspective, reports at Nordregio made some similar conclusions. Comparing internal migration patterns from 2020-2021 to 2018-2019, Randall et al. (2022-b) found that major urban areas across the Nordics experienced an increased out-migration. Some regions experienced higher increases of internal in-migration from the capital regions compared to others.

For example, Lappi and Etelä-Savo (Finland); Region Jämtland Härjedalen (Sweden); Trøndelag, Møre og Romsdal, Vestfold og Telemark, and Vestland (Norway); and Austurlund, Norðurland vestra, and Vestfirðir (Iceland; see Map 4 in Randall et al., 2022, showing increased in-migration from capital regions to other regions in 2020-2021 compared to 2019-2019).

However, in their case study of Copenhagen, Randall et al. (2022-b) found that those who migrated away from the capital municipality during the pandemic (predominantly young families) tended to move nearby, to surrounding municipalities, rather than to further regions.

Some research has pointed to the specific role that housing plays in attracting and retaining populations. In a 2023 study, Thulin et al. (2023) confirm the notion that teleworkers would like to continue hybrid work rhythms in the future in their interviews of Swedish public employees. The pandemic placed “greater emphasis on the home as a central hub and the primary locus of shared work/life activities and interactions,” a finding substantiated by Zhang et al. (2022) as well in their discussion of the home as a key anchor for mobility studies (more so than the fluid anchor of workspace). Thulin and colleagues suggest that urban policy and planning focuses on “enhanc[ing] the attractiveness and liveability of residential areas, not only to retain current residents but also to attract new ones” (Thulin et al., 2023, 8). For some of the respondents, this meant expressing an interest in moving to the countryside; others showed interest in relocating more centrally. McCue (2021) argues that it is likely that remote workers will choose housing with amenities found in resource rich neighbourhoods, which could mean that smaller towns and rural areas seeking to gain new residents through remote work opportunities might focus on housing environments as a major attraction factor.

The discussion of attracting and retaining populations is prevalent in smaller towns in the Nordics. Many smaller municipalities in the Nordic Region have, for several decades, been facing challenges associated with ageing and declining populations. For this reason, planners in such municipalities have considered initiatives for attracting and retaining new populations. However, as shown in research by Nordregio (Granath Hansson & Guðmundsdóttir, 2024), formal strategies for doing so are lacking. The rural and regional case studies conducted within this remote work project indicated the same findings, mainly that policymakers have yet to integrate specific remote work strategies into their strategic planning frameworks (Bogason et al., 2024-a). Nevertheless, they recognise its potential for fostering rural and regional development (see Boxes 4 and 5 for examples). These policymakers continue to emphasise the overall attractiveness of their regions by working on the provision of high-quality services and promoting various advantages such as affordable housing, proximity to nature, appealing town centres, quality infrastructure, and social trust. Remote work is further perceived as an integral component of this broader strategy. Rather than dedicating specific strategies for remote workers, the municipalities recognised this group as part of a larger population group which they wish to attract or retain. The COVID-19 pandemic demonstrated the feasibility of remote and hybrid work, thereby increasing awareness among both employees and employers of the viability of working from more remote locations. This awareness underscores the potential for remote work to contribute to the economic and social vitality of smaller towns and rural areas, complementing existing efforts to enhance regional attractiveness and sustainability (Bogason et al, 2024-a).

One example of regional planning for attracting populations through remote work has recently emerged in the North Savo region of Finland. In a project referred to as “Multi-locality to boost the attractiveness of North Savo,”

In Finnish, Monipaikkaisuudesta boostia Pohjois-Savon vetovoimaan, see https://www.pohjois-savo.fi/viestinta/uutiset/monipaikkaisuus-hankkeeseen-haetaan-mukaan-5-7-kuntaa.html

the region will select 5-7 municipalities to implement several measures to support multi-locality by promoting local employment and participation in the municipality. The success of the measures will be evaluated by collecting data on how many people in the municipalities have multiple places of residence, their duration of stay in the municipality, and their regional economic impacts (Regional Council of North Savo, 2024).

The project builds upon an earlier multi-location project

See https://www.savogrow.fi/tietoa-meista/hankkeet/monipaikkaisuus-hanke/

(2021-2023) organised by SavoGrow, a company co-owned by several municipalities in North Savo. The former project developed a collection of measures about how municipalities could better account for people living multi-locally within local action plans. The measures fall into the topics of will, participation, vitality, and mobility, and have been compiled into a user-friendly deck to share among municipalities and regions.

See https://issuu.com/savogrow/docs/monipaikkaisuus-t_htiluokituskortit-v1_007?fr=xKAE9_zU1NQ (in Finnish).

Though multi-locality has been a common concept and phenomenon in Finland (as well as other Nordic countries) for many years, it has not been utilised as a strategy in regional planning until recently with growing remote work opportunities prompted by the pandemic.

A new study from Iceland, conducted by the University in Akureyri, further highlights that remote work within the state sector is here to stay, but also that employees are generally thriving and viewing remote work positively. The study shows increased job opportunities for highly educated individuals in rural areas following the government’s initiative, and it allows people to change jobs without relocating their families (Gísladóttir et al., 2024). However, challenges include the distance from colleagues, which can affect communication and lead to issues with supervisors and coworkers. There is also a need for better dissemination of information about remote work policies and grants. In a survey conducted for the research, respondents expressed significant interest in implementing work clusters or co-working spaces in most municipalities to combat social isolation among remote workers. This approach is considered more effective than assigning individual desks in existing municipal offices to ensure equity (Gísladóttir et al., 2024). According to the interviewees, the Icelandic state initiative was viewed positively for regional and rural development while also influencing employers in the private market to increasingly offer remote work options.

In Iceland, pre-pandemic regional policy about jobs without placement has gained momentum, and post-pandemic, all government jobs should be advertised without a specific placement so as not to limit who can do the work (unless the work requires clear site-specificity; see Synthesis section of this report). A five-year action plan 2022-2026 aims to distribute government jobs more evenly outside the capital area, emphasising the balance of long-term population decline, unemployment, and monotonous economic life (Alþingi, 2022). The plan notes that “targets will be set for increasing the number of workspaces and non-local jobs with as even a distribution as possible across the country” (Alþingi, 2022). 

Other recent studies from the University of Akureyri also show an increase in the percentage of jobs from ministries that could be advertised as non-local or site-less (12% of governmental jobs) compared to previous analyses (RHA, 2024). While the intention of this is to create more balance by enabling more jobs in the countryside, some concern was raised within the case studies of this project about potential unintended consequences – for example, that jobs based in the countryside can now be done remotely by those moving to the capital area (Bogason et al., 2024-a). In August 2024, a step was taken to encourage an increase in and subsidisation of government remote work in rural areas with the approval of special funding to support the goal. Government agencies in the Capital Area will be able to apply for grants for each remote position located in a rural area. The grants will cover costs associated with providing facilities for employees and travel expenses (Innviðaráðuneyti, 2024). 

Within the Nordregio studies, urban and rural attractiveness was identified as essential for attracting and retaining remote and hybrid workers in the selected Nordic municipalities. Whereas the term urban attractiveness is subjective and the literature points to a multifaceted concept (see Box 2; Hidman, 2018), there seemed to be agreement on what constitutes an attractive small town in the five Nordic case towns, as more or less the same town features were brought up as important for urban attractivity (Granath Hansson & Guðmundsdóttir, 2024). The studied municipalities identified strengths, such as affordable housing, short distances, access to digital and physical infrastructure, as well as access to nature and leisure activities. However, they also strive to overcome difficulties such as more vibrant city centres (often using densification as a tool) and an appropriate housing mix.

While most municipalities continue to look towards economic growth and development as the key policy message, discussions around smart shrinkage are also important (see, e.g., Syssner, 2022). Despite changes and opportunities of multilocal work patterns exacerbated by the pandemic, forecasts continue to suggest a decline for municipalities outside major urban regions. While this is known, few policymakers and planners are developing strategies that acknowledge and prepare for this reality. An upcoming Nordregio report provides insights on smart adaptation strategies in Nordic rural municipalities.

See https://nordregio.org/research/smart-adaptation-to-rural-realities-approaches-and-practices-in-nordic-municipalities-and-regions/

Research from Schmit-Thomé and Lilius (2023) highlights an example from Puolanka, a rural municipality in Finland that has embraced a social and cultural identity of pessimism (see Box 6).

Since 2006, the idea of pessimism has grown into a sort of brand for the municipality, involving Pessimistic Days, a Pessimism musical, and pessimism-themed merchandise, some of which has been co-funded by regional development programmes. The brand did not initiate from the municipality or mayor’s office, but in a grassroots way from residents initially involved in the Pessimistic Society.  Puolanka also focusses on retaining residents rather than attracting new residents, with multi-locality as one way to do so. Those who work remotely or spend time in the municipality only during the holiday seasons (summer, Christmas, Easter) are considered “part-time Puolanka citizens” (Schmidt-Thomé & Lilius, 2023, 10). The residents are viewed positively by other residents and the municipality, who view them as an opportunity for the future and worth investing in. 

The municipality believes that remote working will bring more residents to Puolanka in the future, and therefore needs to invest in service provision. They are also “interested in flexibly converting secondary homes to primary homes” in order to “make multi-locals permanent residents in Puolanka” (Scmidt-Thomé & Liluis, 2023, 10-11). The authors consider how multi-locality could be used as a policy concept for the Finnish shrinking municipality by emphasising well-being of the existing residents instead of concentrating strategic efforts on growth.

In the Nordic context, urban-rural linkages have also previously existed through the flexible lifestyles afforded via second home ownership, as around half of the Nordic population has access to a second home. Previous research has highlighted the benefits of second homes and seasonal tourism for rural development through job creation, cultural activity, and service provision. Continued forms of remote work may also contribute to these activities in rural areas with high shares of second homes. However, these urban-rural flows also complicate the territorial distinctions baked into spatial planning, which manifests in uneven tax benefits for municipalities, among other pressures placed on smaller municipal planning departments (Bogason et al, 2024-b; Slätmo et al., 2019; Bogason & Slätmo, 2023).

The Nordic survey participants in the Nordregio research project indicated a significant increase in the use of second homes during the pandemic. Over half of the Nordic survey respondents suggested an increase in a collection of factors related to second homes, including demand, price, and more time using second homes on weekends, outside of high season, and in combination with work (Randall et al., 2020-b). While it is difficult to know precisely how changes in housing demand or second home use are directly connected to remote work, the survey participants perceived that remote work opportunities played a significant role in both temporary and permanent population changes. Rural and regional case studies carried out by Nordregio (Bogason et al., 2024-a; Bogason & Slätmo, 2023) point to problems related to the purchase of second homes by non-residents: increased demand creates housing shortages and drives up prices, which is particularly problematic to permanent residents in regions where the local economy does not support high wages. Additionally, second homes are frequently unoccupied for extended periods, leading to a lack of community cohesion and vitality. These phenomena might render rural areas less attractive to remote workers who seek attractive and affordable housing as well as vibrant and engaged communities.

In their report on remote work in rural areas, Bogason et al. (2024-a) studied the case of Keuruu, Finland, where people already living in the area or who own summer houses would benefit from remote work opportunities. The work of attracting residents has mainly focused on those who already have ties to the area (e.g., young people who have moved away but may be inclined to move back). The report states that some municipalities in Central Finland have supported this by changing zoning policies (Bogason et al., 2024-a). Several other studies have tracked the phenomenon during and after the pandemic. Using mobile phone data in Finland, Willberg et al. (2021) saw a shift in the presence of people from the Uusima region (Helinski) city centre to rural areas during the pandemic, particularly those with second homes. However, some researchers doubt that remote work from second homes (at least on a permanent basis) will become a large-scale trend, as people will continue to use their second homes as part of a multi-local lifestyle with anchor points elsewhere—such as in the city (Lönnqvist, quoted in Sandell, 2022). In a report from Aalborg University, survey results showed that only one in ten Danish employees who worked from home during the pandemic used locations other than their primary residence to do so (Haunstrup Christensen et al., 2024).

In the international literature, remote work has also been discussed from the rural perspective with regards to developing a so-called rural-creative class (Duxbury, 2021). While Richard Florida’s well-known concept of the creative class came to prominence in the early 2000s, his idea that a young professional demographic can influence the economics of cities has maintained its stronghold in planning discourse. Duxbury (2021) builds upon the idea by considering how cultural policies in rural areas can support a rural creative class. Her review of academic and planning documents of cultural work in non-urban areas reveals opportunities for policymakers to both attract and retain residents through a “comprehensive approach to fostering cultural and creative work in rural and remote areas” (3). Hill et al. (2020) evaluate the situation from the perspective of retaining rural populations. In their short-term evaluation of a certification programme in rural Utah, where individuals had the opportunity to train on remote work practices, the authors suggest that remote work can enable rural residents to gain jobs based in larger urban areas without needing to relocate. Duxbury (2021) also highlights that retaining populations in rural areas is key and suggests that cultural and creative opportunities in rural and remote areas can play a significant role in facilitating rural vitality. However, the notion of the creative class—both urban and rural—has been much debated since its inception, often due to its bias towards attracting wealthy individuals to areas seeking economic growth, leading to issues of gentrification and further disparities between rich and poor residents (see, e.g., Wetherell, 2017). 

Digital infrastructure has been cited as a key resource for enabling remote work (Sostero et al., 2024; Paul, 2022). In the pre-pandemic study made by Bürgen et al. (2021) in Switzerland, researchers also learned some nuances regarding how individuals use ICTs when working remotely, away from urban areas. While ICTs are important enablers of remote work, the study showed that, when choosing to work remotely from a rural location, they spent less time on their laptops, especially working on documents on their laptops. Rather than increasing their ICT use, the workers strategically used the remote work opportunity to work in different ways and take advantage of, for example, the inspiring scenery around them and using more analogue modes of work to accompany this. The participants also took more breaks when working remotely in these peripheral areas and worked more flexible hours compared to their time working at their jobs in urban centres. Importantly, the study considered hybrid workers, and participants noted the importance of maintaining access to the city and working from urban centres in order to inspire teamwork and collaboration among colleagues.