The Evolution of Coworking: From Big Cities to Small Communities

A digital illustration of 3 people working together at a coworking space.

Illustration by MOMO Studio on Unsplash

Once seen as a trend for startups and tech workers in major metropolitan areas, coworking has transformed into a global movement reshaping how and where people work. Over the last decade, what began as a solution for freelancers and early-stage entrepreneurs in cities like New York and San Francisco has steadily expanded into small towns and rural communities—places that were once overlooked in the flexible workspace conversation.

As remote work continues to grow, and as people increasingly leave large cities in search of affordable living, better quality of life, and stronger community ties, coworking spaces are evolving to meet the needs of professionals in small communities.

In this article, we’ll explore the history of coworking, the factors fueling its spread into smaller markets, and how spaces like The Hub CoWorks in Rutland, Vermont are redefining what coworking means today.

     1. A Brief History of Coworking

The concept of coworking emerged in the early 2000s, driven by the rise of the freelance economy and the need for more flexible, collaborative workspaces. The first official “coworking space” is often credited to software developer Brad Neuberg, who opened a shared office in San Francisco in 2005.

The idea took off quickly, with early adopters drawn to the affordability, flexibility, and sense of community offered by these shared spaces. Within a few years, coworking spaces were popping up across major cities around the world, attracting:

  • Freelancers
  • Remote employees
  • Startups and small business teams
  • Creative professionals

By 2019, there were over 20,000 coworking spaces worldwide, with major operators like WeWork, Industrious, and Spaces dominating the urban market.

     2. The Shift: Why Coworking Is Expanding Into Small Communities

The Rise of Remote Work

The COVID-19 pandemic dramatically accelerated the shift toward remote and hybrid work. Millions of professionals who were once office-bound found themselves working from home—and many began to reconsider where they lived and how they worked.

According to a Pew Research study, over 35% of U.S. workers with jobs that can be done remotely now work from home full time. Many of these workers moved out of large cities, opting for small towns with lower costs of living, safer environments, and slower lifestyles.

As a result, the demand for professional workspaces in smaller cities and towns began to grow—and coworking followed.

Cost and Accessibility

For small business owners, entrepreneurs, and freelancers in rural areas, renting a traditional office space is often cost-prohibitive or unnecessary. Coworking offers a more practical option:

  • Flexible memberships (day passes, monthly, or multi-day bundles)
  • No long-term leases or upfront setup costs
  • Access to high-speed internet, meeting rooms, and office amenities

This accessibility and affordability make coworking an ideal solution for independent workers and small teams in smaller markets.

Community Development and Economic Revitalization

Local governments and economic development groups have also started to recognize the value of coworking spaces in revitalizing downtowns and attracting new talent. By investing in modern coworking spaces, small communities can:

  • Support entrepreneurship and local business development
  • Retain and attract remote professionals
  • Reuse underutilized or historic buildings in creative ways

In places like Rutland, Vermont, coworking spaces are becoming hubs of economic growth, innovation, and professional opportunity—without the hustle and high prices of major cities.

     3. The Benefits of Coworking in Small Communities

Coworking is not just about a place to plug in a laptop. It’s about creating a consistent, productive routine in a space built for focus and performance. The benefits are amplified in smaller communities, where workspaces can be harder to come by.

Professionalism Without High Overhead

Coworking offers an office-like environment—without the expense or long-term risk of leasing your own space. You gain access to:

  • Clean, quiet workspaces
  • Conference rooms for client meetings
  • Printers, monitors, whiteboards, and reliable Wi-Fi
  • Private rooms for video calls

This is especially valuable for consultants, freelancers, and remote workers who need a professional setting but don’t want to rent an entire office.

Better Work-Life Balance

Working from home can blur the line between professional and personal life, leading to burnout and decreased productivity. A coworking space provides:

  • Physical separation from home
  • Improved structure and routine
  • A chance to mentally “clock in” and “clock out” each day

This kind of consistency is good for both your productivity and mental health.

Boosting Local Economies

When professionals work from a local coworking space, they’re also more likely to support nearby restaurants, shops, and services. Coworking spaces help drive foot traffic to downtowns, contribute to the local tax base, and make small cities more appealing to both residents and visitors.

     4. The Hub CoWorks: A Case Study in Small-City Coworking

Located in the heart of downtown Rutland, Vermont, The Hub CoWorks is an example of how coworking is moving beyond big cities.

Originally created to meet the needs of local entrepreneurs and remote workers, The Hub has grown into a resource for professionals from across the region—offering a quiet, modern, and reliable workspace right in the center of town.

What Makes The Hub CoWorks Stand Out

  • Flexible memberships – Choose from day passes, 10-day bundles, or monthly options
  • Private meeting rooms – Equipped with Cisco Webex technology available to book on-site
  • Fast internet, free coffee, and functional amenities
  • Affordable pricing compared to renting traditional office space

In a city of just 16,000 residents, The Hub provides a rare combination of professionalism, flexibility, and value. For local freelancers, remote employees, and small business owners, it’s a way to work smarter without leaving town.

     5. The Future of Coworking in Rural America

The coworking trend isn’t slowing down—it’s simply evolving. As more people realize they don’t need to live in major cities to do meaningful work, coworking will continue to fill a critical gap in small towns and rural areas.

We’re already seeing new developments:

  • Coworking spaces opening in repurposed buildings like libraries, mills, and post offices
  • Partnerships with economic development organizations and chambers of commerce
  • A shift from “hip startup culture” to practical, purpose-driven work environments

This evolution is about access, affordability, and adaptability—helping people work wherever they live, and supporting local economies in the process.

Final Thoughts: Why the Evolution of Coworking Matters

Coworking is no longer a niche trend—it’s a core part of the modern workforce. As it spreads from urban centers to small communities, it’s providing much-needed infrastructure for remote workers, small business owners, and creative professionals in towns like Rutland.

If you’re a professional living in a small city and you’re struggling to stay productive at home—or you simply miss the rhythm of an office—coworking could be the solution you’ve been looking for.

Experience it for yourself. Book a tour of The Hub CoWorks today and see how a flexible workspace can change the way you work—right here in downtown Rutland.