Digital nomadism was a niche phenomenon before the pandemic (2019), with around 7.3 million Americans working abroad. In 2024, 18.1 million US citizens identify as digital nomads, a 147 percent increase year over year, according to MBO Partners.
That is the hard data everyone knows. What nobody is discussing is the relentless bombardment of publicity encouraging Americans to leave the country for friendlier lands money-wise.
Nowadays, it’s easy to spot an army of TikTokers, Instagrammers, and YouTubers making millions by promoting the “infinite” benefits of a nomadic lifestyle.
In this regard, even the US government has released step-by-step guidelines for retirees to learn how to live abroad while retaining monetary benefits.
So, digital nomads, remote workers, freelancers and retirees have been promised open doors worldwide because—in theory—they bring prosperity around the world.
However, data show the opposite: Americans have been massively blamed for altering the economic dynamics of the cities that host them, driving up rentals, messing up with inflation and most importantly, forcing residents out of their homes.
In addition, digital nomads face criticism for their lack of interest in integrating into the local culture and their desire for such cultures to adapt to them (some exceptions have been reported).
For instance, Lake Chapala, Mexico, is home to the largest US immigrant population. There, newcomers live behind tall mechanical doors, separated from the local community, where only English is spoken.
Little is known about them except when they visit local restaurants or use the healthcare system, to which they contribute very little and in many cases, nothing.
Another relevant case: while in the Dominican Republic citizens earn an average of $300 per month, many properties are listed for over $175,000 (in dollars instead of the local currency), obviously catering to international investors. Some returning residents say gentrification on the island is worse than in New York.
Another case of mass gentrification that has gone unnoticed is Panama. Thousands of Americans began leaving Panama City about 12 years ago after gentrifying it to the point it became unaffordable, even for themselves.
Meanwhile, emerging digital nomad destinations like Medellín, Colombia, have started to experience similar effects with the massive arrival of Americans post-pandemic.
But gentrification is not an issue affecting Latin American countries only.
The phenomenon has also reached Europe, where locals in popular countries have begun to take to the streets to protest against a series of problems associated with the arrival of a significant number of high-spending remote workers.
For instance, housing prices in Lisbon, Portugal—a city ranked among the best for remote workers worldwide—have seen a staggering jump of up to 100% over the last six years, according to the International Monetary Fund (IMF).
Meanwhile, Spaniards across the country have started to push back against the short-term renters and tourists, accusing them of forcing them out of their traditional neighborhoods.
In popular expat destinations like Andalusia, the Balearic Islands, the Canary Islands, Cantabria and Valencia, the situation is so serious that “the average rental price exceeds 30% of the net income of households.”
In Madrid, rent takes away half of the resident’s salaries, while in Barcelona, buying a home is 68% more expensive today than it used to be 10 years ago.
“For three or four years we have been witnessing a second gentrification of people who were already expelled from the city centers to the periphery and now find themselves expelled from there to a second circle or even beyond,” said former Director of the UNESCO Housing Chair in Catalonia.
Speaking of Barcelona, powerful vulture funds have snapped up hundreds of apartments to turn them into short-term rentals for digital nomads, forcing locals to move to the outskirts and even nearby towns, increasing commuting costs.
Right now, the city is hosting the 37th America’s Cup—the third most important sporting event worldwide.
Hundreds of residents who used to live in the neighborhoods surrounding the Paseo Marítimo have been evicted during the last six months.
Locals complain that these apartments are now offered at astronomical prices only foreigners can afford.
Addressing gentrification issues will require the cooperation of local governments and digital nomads alike.