1. Yes, there is an industry-wide downturn in tech. There was just massive over-hiring during the pandemic, and then a huge number of layoffs, which means there are tons of people on the market. Many people have been reporting a strong shift in mentality, lead times, etc. in the tech job market.
2. There is, however, still a lot of demand for tech workers, even if still less than the ZIRP years. Many companies and institutions simply couldn't compete with high paying FAANGs and startups for tech talent, but their need to tech work didn't go away. So in places like government, consumer-focused companies, non-profits, etc. are still hiring. Salaries are often considerably lower than pure tech companies.
3. Despite the huge number of remote jobs, location still matters, primarily because relationships still matter, and those are easier to build face-to-face. This is not unique to tech. If you want to make it big in the fashion industry, there are maybe 4 -ish cities worldwide where you should live. Movie-making, pretty obvious. So while tech is just an overall much, much larger industry, it's not surprising you're disillusioned by St. Louis.
You say that you're a contractor. What does this mean exactly? I.e. are you a contractor by choice, or would you prefer a full time job? How do you normally find jobs (is there a recruiter you usually work with, do you do your own searching, get jobs from past contacts, etc.)? The answer to these questions is important when it comes to optimizing your job search.