One way to describe cities is to call them labor markets. Historically, people have chosen to live in cities because they have provided economic opportunities (among, of course, many other things). That's why the data is very clear: wages are higher in larger cities.

But what we have also seen over the last few years -- and what is causing a lot of dislocation in real estate markets -- is an untethering of work. More people are working from home and from locations that offer greater lifestyle benefits (or greater tax benefits).

We spoke recently about what this divide between in-person and remote work might mean, but regardless of this outcome, I think there's an important truth here: Lots of people would like to live somewhere else. (In my case, my daydreams take me to Paris.)

And for the first time ever, really, it is possible for more people to do this and stay connected to work somewhere else. Earlier innovations, such as the streetcar or car, also compressed geographies and empowered people to travel greater distances. But now the catchment area has seemingly expanded to the world.

I'm not saying anything particularly novel here, but I do think it's important to point out that this desire exists in many of us. Because this tension between "I do work here" but "I really want to live over there" seems like it's only increasing.

One common way to measure affordability is to look at the cost of things relative to local incomes. But the world is getting increasingly more complicated than this. Here, for example, is an interesting article talking about the "nomadification" of cities such as Medellín.

What this is referring to is digital nomads who might work for and draw a salary from a company in say the US, but who work fully remotely in places like Medellín, Buenos Aires, and Mexico City. It's like working from home all the time, except home is some exciting city in Latin America.

The appeal of this work arrangement is obvious. You get to both live in an exciting city and you get to arbitrage between a US or other similarly high salary and a place where the cost of living is significantly less.

But the point of the above article is that this can distort a local economy and make locals feel like they're getting priced out. When you take enough software developers making $150k a year and you drop them into a place where the minimum wage is $350 per month, that additional income starts to have an impact.

Though, many countries seem to think it's a positive one. Last year, both Portugal and Colombia introduced new digital nomad visas, which presumably means they want more of them. And I certainly think that we will see more and not less of this kind of working.

But in a way, isn't this really just an extreme form of tourism? I mean, unless these nomadic cities are collecting additional income taxes (or deriving some other benefits), aren't we just talking about foreigners renting Airbnbs and spending money that is earned and taxed elsewhere?

Chart: Rest of World

According to this recent WSJ article, 60% of Marriott's hotel stays in 2019 were for business travel. Given that this travel segment is believed to be one of the most permanently impacted by soul-sucking virtual meetings, the company has announced that it will be working to turn its hotels, or at least some of them, into "bleisure" destinations.

The idea here, as I understand it, is that if this pandemic does in fact result in greater work flexibility, but less business travel, then this could be a way to target people who are "working from anywhere." Don't travel for work; work while you travel, is I guess how you could spin this.

I'm not clear yet on how exactly this gets executed, but it sounds somewhat similar to the coliving/coworking spaces that currently cater to digital nomads and other location-agnostic professionals. Examples include companies like Outpost and Outsite.

Regardless of whether or not this is actually practical, productive, and scalable (it could be), I think the idea of working from different (and potentially exotic) locations all around the world is a compelling concept for many people. Especially right now after a year of mostly working from the kitchen table.