To me WFH aligns the incentives exactly right in this case. You attract workers by being a good place to live. Have stuff human people care about -- parks, playgrounds, schools, restaurants, nightlife, recreation, arts, theater, music, food, yada yada. Instead of right now where the strat is to get a critical mass of well-ish-paying businesses and then everything else is extra. Communities will form based on what people do outside work which sounds like actual heaven.
I'm pretty sure they'd be happy to serve the Digital Nomads or the Remote worker that picked small town, out of no where.
Manhattan is attractive because it's much easier (at least pre-2019) to get a job there when you have little skills (a bartender can actually be a skilled job and requires certain connections) and need cash fast. There is also a community of people in the same situation (especially if you are a new immigrant).
There are tons of jobs you can do remotely, without being good with tech. I will wager that most people working low paid manual jobs today have the full potential to handle a remote job. They just haven't had or made that opportunity.
US zoning is shitty because it doesn't allow stores or restaurants in residential areas. But if that could be fixed, you could have a corner store and a diner/restaurant within walking distance of your home.
1. Is there less restaurant business?
2. Does it hurt city real estate?
3. People spend more time with family.
I'm much more interested in other points about how remote work has an impact on the economy.
* How do cities and states attract well paid remote workers? Who are the winners and losers of this transition.
* How does remote work impact wages? A programmer in Nashville was probably paid less than one in San Fransisco. How is remote work impacting that discrepancy?
* How is remote work impacting residential real estate? Are home owner rates climbing as people flee the expensive cities? How is it impacting which homes are more desirable?
* How is remote work impacting energy usage?
* How is remote work impacting in office jobs for the same type of work? Are in office jobs paying a premium for labor over remote? Do employers see the increased investment as paying off? Do investors?