Digital Nomads and their impact on the housing market
An article by Gordon Yoon, Principal Economics & Research
Understanding housing sub-markets and lifestyle or behavioural shifts are important when planning and designing your next project. We’re shining a light on Digital Nomads, and exploring the implications of this growing segment on the housing market.
The concept of a digital nomad is not new, but their numbers are growing rapidly in Australia. We often hear the term in conversation and the media - but who exactly are they?
A digital nomad is a modern, location-independent professional who leverages technology to work remotely. This lifestyle moves away from traditional office-based employment, driven by a desire for flexibility, travel, and a non-traditional work-life balance.
Typically aged between 25 and 45, digital nomads are highly educated, tech-savvy, and have a global mindset. Many are high-income earners, often working in technology and communications industries, where they rely on digital tools for collaboration. Beyond work, they are travel enthusiasts, prioritising experiences over material possessions. On average, they stay in a destination for around seven months before moving on.
RISING TRENDS
Traditional workers are increasingly adopting a ‘work from anywhere’ mindset and shifting to a digital nomad lifestyle. In the US, the proportion of digital nomads with traditional jobs (full-time employees working remotely) has risen from 44% in 2019 to 66% in 2022. Surveys show that more than 70% cite the pandemic as a major catalyst for their transition. Since 2019, the number of digital nomads in the US has more than doubled - from 7.3 million to 17.3 million in 2024. Globally, this trend shows no signs of slowing, with projections estimating that the digital nomad population will reach 60 million by 2030.
Whilst the term ‘digital nomad’ refers to being location-independent, there are parallels in the needs of this segment and employees working in a hybrid workplace. The growth of hybrid work models post the COVID-19 pandemic is reshaping the landscape of modern workplaces, significantly changing how we work and the demand for office space. Enabled by technology, this trend is fuelled by the value employees place on the flexibility and work-life balance that hybrid work offers, as well business benefits rising from reduced office costs, enhanced employee satisfaction and retention leading to improved productivity, and access to a wider talent pool that remote working offers. In response, developers are exploring innovative solutions to integrate working environments with housing solutions or mixed-use precincts.
DIGITAL NOMAD HOTSPOTS
A recent study on the fastest-growing remote work hubs of 2024 highlights the cities attracting digital nomads. Over the past five years, the following destinations have seen steady growth:
Phuket (Thailand)
Mexico City (Mexico)
Warsaw (Poland)
Asuncion (Paraguay)
Doha (Qatar)
Interestingly, Melbourne has made the list of the fastest-growing remote work hubs in 2025, ranking as the 7th fastest-growing hub in the world, ahead of Uluwatu, Bali in 8th.
These destinations share a number of characteristics that make them attractive to digital nomads: Starting with the basics…. reliable high-speed internet (absolutely critical), affordable cost of living, and ease of travel both within the city and to other places. Digital nomads often seek destinations with vibrant cultural scenes, outdoor activities, and opportunities for exploration. A sense of community is also important - destinations with established digital nomad hubs offer networking opportunities, social connections, and shared experiences, as well as high quality co-working spaces and cafes. And critically, availability of accomodation options (short term and long term) that are affordable, and well equiped to support their lifestyle.
IMPLICATIONS FOR THE PROPERTY MARKET
With digital nomadism on the rise, it presents an opportunity for the property sector to capture the rising demand from this growing segment and explore innovative solutions to meet the needs of remote workers. Key considerations include:
Location matters – Digital nomads seek accommodation near vibrant urban centres with strong amenities, entertainment, cultural activities, and access to good transport links. Proximity to shops, cafes, and restaurants is crucial.
Flexible living arrangements – While nomads embrace mobility, they also seek mid-term stays that allow for an immersive experience in their chosen destination. Accommodation providers must balance flexibility with stability.
Affordable yet high-quality housing – Digital nomads are budget-conscious but value quality. They look for nomad-friendly accommodation with well-designed communal spaces, integrated workstations, and reliable high-speed internet - essentials for their remote work.
As digital nomadism and remote working accelerates, all sectors involved in planning, design and delivery have an opportunity to adapt and respond to capture this evolving market.