What is the smallest city in your country that everyone can still instantly recognise the name of? What is it famous for?
In the United States, I'd probably name Oregon City, the famous end of the Oregon Trail and the first city founded west of the Rocky Mountains during the pioneer era. Its population is only 37,000.
It might not count as a city but Nome Alaska has the Iditarod with only, 3700 people. Or maybe some famous battlefield, Gettysburg has 7100 people. A ski resort like Aspen could count with 7000. We all had to memorize state capitals so maybe somewhere like Montpelier, Vermont has more recognition but has 7800 people.
Aspen has been experiencing a deep housing crisis for years. They have to bus in most of their workers from nearby towns because no one who has to work for a living can afford to live in Aspen. Now there's a worker shortage because no one can afford to live in the outlying towns either.