Wondering where to make your next tech hires? According to a report from CBRE Research evaluating tech talent markets in 50 U.S. and Canadian markets, some of the most concentrated areas of tech talent are also the most expensive cities for businesses to operate in. With higher costs of living and operating a business, these hubs of tech talent demand salaries higher than the national average — but in some cases, the benefits of valuable tech talent can outweigh the costs.
These 10 cities experienced significant growth in tech salaries and workforce over the past five years, boasting the highest average tech salaries 2016. While that’s good news for workers, it’s a tough pill to swallow for businesses looking to hire tech talent; however, the report shows that sometimes it’s worth the cost.
San Francisco Bay Area, Calif.
In the Bay Area, tech wages have grown 14 percent over the past five years, with the average tech salary in 2016 coming in at $123,158, 133 percent more than the U.S. average. With high salaries and rising job opportunities, the Bay Area remains the No. 1 destination for tech worker migration. According to the CBRE report, more than 109,280 tech jobs were added between 2012-2016, compared with 28,804 tech degrees earned in the area from 2011-2015. This “brain gain” of over 80,000 tech workers topped the survey. The report also found that 10.3 percent of the labor force is in the technology industry
The average tech salary in Seattle was $113,906 in 2016, 123 percent higher than the national average. Tech salaries in Seattle have grown 21 percent over the past five years, faster than any other city on this list.
New York, N.Y.
In New York, the average tech salary for 2016 was $108,878 — that’s 16 percent growth over the past five years and 118 percent over the national average. The city has experienced strong job growth in the tech market too, adding 32 percent more tech jobs in the past five years. To compare, sales, admin, operations, finance and marketing jobs only grew by 11.3 percent in total.
In the past five years, tech salaries in Washington, D.C., have grown by only 9 percent, but in 2016 the average tech salary was $108,330, 17 percent higher than the national average. The cost of living in the nation’s capital is 22 percent higher than the national average and it’s one of the most expensive markets to run and operate a business in.
Tech jobs in Newark have grown over 16 percent in the past five years, while the rest of the labor force has seen less than 4 percent growth. Growing 11 percent in the past five years, tech salaries in Newark are 16 percent higher than the national average at $107,612.
Boston’s tech salaries only grew by 9 percent in the past five years, but in 2016, the average tech salary came in at $103,979 — that’s 13 percent over the national average. Boston also has a high concentration of millennial workers — almost 25 percent of the total population.
Denver isn’t typically thought of as a technology hub — but hiring tech workers in Denver still comes at a high price. In 2016, the average tech salary in Denver was $100,258 — 9 percent more than the national average, with a 20 percent growth over the past five years.
San Diego, Calif.
Tech salaries in San Diego might not be run as high as in the Bay Area, but at an average salary of $100,258 in 2016, it’s still an expensive city to hire tech workers. In the past five years, salaries have grown by 13 percent, settling in at 8 percent higher than the national average.
Orange County, Calif.
In Orange County, the average tech salary was $99,256 in 2016 — 8 percent over the national average. In the past five years, tech salaries in Orange County have grown by 11 percent.
In 2016, the average tech salary in Baltimore, MD was $98,824 per year — 7 percent higher than the national average, with 12 percent growth in the past five years. Baltimore and Washington, D.C., earned the top two spots for diversity in tech hiring — with a tech workforce of 69 percent males and 31 percent females.