What you can do to help the cost-of-living crisis

Written by Kat Harrison, El Camino Travel contributor. Originally published January 12, 2023

The freedom to work from anywhere has led to a growing digital nomad population. Consequently, we’ve seen an exodus from some of our most over-priced US cities (looking at you, NYC). Digital nomads can travel to new places, often opting for more affordable cities offering a better quality of life, all while maintaining their usual income—thank you, Zoom.

The Downside of Digital Nomads 

Yet, following the early months of the pandemic, the reality of flexible workplaces set in for many people. Employees of US-based companies who had been teleworking abroad discovered the downside of this lifestyle—it’s not quite as simple as it seems (re: tax nightmare). In parallel, cities that received large influxes of digital nomads faced an even harsher reality—the rapid increase in demand for housing has driven up the costs of living for locals. Locations like Medellín, Mexico City, Lisbon, and Oaxaca, who have welcomed an army of remote workers, are struggling with astronomical rises in costs of living for locals.

Opportunity to Positively Impact the Local Economy

But it’s not all bad. Digital nomads have the potential to positively impact local economies by bringing their disposable incomes to their destinations of choice and supporting local businesses. The key is to avoid long-term stays in cities that are already inundated with remote workers, and instead, opt for the El Camino way and choose an off-the-beaten-path destination. As there are increasing numbers of digital nomads flocking to new cities, it is more important than ever to choose wisely to determine where and how you spend your money and time, for both work and play.

Advice from El Camino’s Co-founder and CEO

I sat down with El Camino’s Co-founder and CEO, Katalina Mayorga, to discuss the responsibilities of digital nomads—how to make a positive impact as a digital nomad. 

Why is it important for digital nomads to consider long-term stays in under-the-radar cities?

Katalina Mayorga: “You are more likely to have an immersive experience and be able to get to know various aspects of the local culture if you stay in an under-the-radar city that hasn’t received an influx of residents over the last few years. In smaller, less touristy locations, it is easier to build a community, especially if you’re staying for a longer period of time because you are not just in and out. 

From an economic perspective, your tourism dollars will go a lot further for this community, and you will ultimately have a greater impact on this location than a digital nomad hot spot. That is why El Camino focuses on off-the-beaten-path locations. Our Greece trip is a great example. The majority of tourists are going to Santorini and Mykonos, but we take our groups to the equally beautiful but far-less-frequented islands of Tinos and Paros. By doing so, we are true to our ethos—planning sustainable, responsible travel that drives a more meaningful economic impact.” 

What attributes make a city a good option for digital nomads? What should digital nomads be thinking about when they decide on a location to call a “temporary home?” 

KM: “First, I recommend prioritizing cities that are walkable and/or have great public transportation because you probably don’t want to rent a car. You will want to be able to easily plug into a community, and I have a great tip for that—find your Cheers. Frequent the same places to start becoming a familiar face, and put yourself out there. Ask questions and be curious.

For example, my husband and I lived in a small Colombian town, Barichara, in 2018. We had a favorite coffee shop that we frequented, where we eventually made friends with several locals, including a friend with a pet goat.

Also, make sure you think about WiFi, especially if your work is Zoom-meeting heavy. Does the town have good infastructure? Do they have frequent blackouts? 

Finally, I know scenery is a big draw for digital nomads. For example, Portugal is so popular because it’s on the ocean. If that is important to you, think of alternatives with similar scenery. Lima is a great ocean-front alternative to crowded Lisbon. I also highly recommend Nicaragua as an alternative to Costa Rica”

Do any cities come to mind as good options for digital nomads?

KM: “Think about secondary cities. Rather than going to Mexico City, opt for Guadalajara, which has great food, architecture, and traditional culture, but is not nearly as crowded. 

This cafe earned a spot in our Guadalajara travel guide for remote workers.

How can digital nomads contribute positively to a local economy once they are settled in a new city? 

KM: “Spend your dollars where it will make an impact. This is possible even in cities that are experiencing overtourism. For example, although El Camino travels to Medellín and Oaxaca on our small group trips, the economic pressure is eased because we are patrons of the local economy. We stay in boutique hotels rather than long-term Airbnbs, since that can raise housing costs for locals. Our activities are centered around supporting and interacting with local artisans, musicians, chefs, and artists.

With El Camino, there is an opportunity for your tourism dollars to go somewhere meaningful. Even with famous tourist destinations, like Comuna 13 in Medellín, a community with powerful murals depicting its violent history, we provide deeper perspective and insight by amplifying community leaders’ voices and taking our travelers to a part of the neighborhood where hardly any other tourists go. We make sure tourist dollars are spent differently—locally—and that’s the best way to make a positive impact.” 

Learn More

As people continue to embrace work-from-anywhere lifestyles, we must continue our conversations and education on how to responsibly be a digital nomad. 

• Join The ECT Clubhouse for more conversations about travel planning and responsible travel. Here’s a glimpse of some of the advice you will find: 

“I love Mexico City! (Obviously! It's why I live here.) I even created resources for nomads in Mexico City... but it really has gotten wild here. There have always been a lot of foreigners in Roma, Condesa, etc… but we've hit a new level, and the vibe has really changed. Rent is up, the number of people who can't/won't even attempt to speak Spanish is up, and there is definitely more resentment from locals. Instead, try Merida for a warm, small city vibe that's still pretty close to the beach and lots of cenotes, Puebla for a bigger city with great food, Mahahual for tiny beach town vibes, Tepotzotlán for access to nature, and Valle de Guadalupe for beautiful wine country,” recommends ECT Clubhouse member Caro Griffin. 

• Explore El Camino’s travel guides to learn about great destinations for digital nomads, as well as how to be a responsible traveler in cities that have a large digital nomad population, including: 

• The El Camino Travel Guide to Guadalajara 

“Alongside growing tensions between tourists and residents, Mexico City has seen an increase in house prices for locals, due to the recent flock of remote workers. With the same incredible history and culture (but with lower prices), Guadalajara is a great choice for remote workers looking to experience the beauty of Mexico. From regional street food to handicraft hubs and must-see masterpiece murals, we’ve compiled the best of Guadalajara with recommendations from ECT Clubhouse members.”

• Watch the recording of a Remote Work Panel hosted by El Camino, with three legends in the remote working world: Marquita Harris, Nora Walsh, and Mita Carriman.

• Listen to NPR podcast Rough Translation episode about Portugal’s Right to Disconnect Law, digital nomads, and toxic workplace history.