The tech industry is a powerhouse for the US economy. By employing over 12 million workers, accounting for 35% of the total world market, and 7.9% of the total US workforce, the growth of the US tech market isn’t under question.
Many businesses are looking to the US for potential expansion and considering which areas may be best, or are simply wanting to stay informed on the trajectory of the industry in the US to track the progress of emerging areas.
So, which cities are up-and-coming tech hubs in the US, and why?
Unsurprising for anyone who has been keeping an eye on tech-related news, Atlanta – also known as ‘Transaction Alley’ – is home to firms that handle 70% of the credit, debit and prepaid card sales in the nation.
Beyond being a Fintech powerhouse, Atlanta also has more than a dozen companies (that were started or are based in Atlanta) that have grown over the past decade to valuations above $1 billion, such as Mailchimp.
And it’s not just Atlanta-based businesses experiencing the benefits of the location.
The likes of Apple and Microsoft have also set up shop in Atlanta recently, hoping to benefit from the wealth of tech talent in the city.
Tech employees in Atlanta have also enjoyed significant salary increases (13.9% year-over-year) due to high demand, strong academic communities, and a well-built reputation as a tech hub.
The launch of the Atlanta Tech Village back in 2012 alongside Atlanta-based Georgia Tech – producing the most tech graduates per year in the US – are other strong elements of Atlanta’s tech scene and wider appeal to tech businesses.
A recently-established tech hub in the US, Pittsburgh is home to huge tech companies such as Google and Uber, and a range of life sciences, robotics and manufacturing companies.
Google – employing over 800 people in the area – is also intending to expand, investing $15 million in its Pennsylvania-area offices and planning the addition of another floor of office space in Pittsburgh’s open-air shopping and office development, Bakery Square.
Pittsburgh has also had four big IPOs this year, including Duolingo and Aurora.
Equally appealing for tech businesses is the widely available young talent, with the average age of Pittsburgh’s 300,000 population being 33 and excellent academic links such as Carnegie Mellon University, renowned for its computer scientists and software engineers.
Much like other up-and-coming tech hubs, Pittsburgh is one of the fastest-growing tech hubs by salary, with a 14.0% rise since 2020 and an average salary of $98,304.
Fostering innovation and attracting business is part of Pittsburgh’s rise in tech, including the city’s Innovation District, which develops and promotes entrepreneurs in the area.
Austin is rapidly becoming a hotspot for tech businesses, with numerous companies planning expansions and relocations to the city.
Topping the Wall Street Journal’s ‘Hottest US Job Market’ for the second consecutive year, Austin has significantly increased its top tech talent in recent years.
Apple has recently dropped $1bn on a new campus in Austin, which is expected to house 5,000 employees with the potential to expand to 15,000 staff in future.
Austin is also an ideal environment for startups, ranking 20 on the 2021 Global Startup Ecosystem Report.
Bumble’s $2.15bn IPO (the largest in the city’s history) has also been significant for Austin, alongside the collective $400 million of venture capital raised in 2019 by newer tech startups, such as RigUp and DISCO.
Additionally, Austin has seen a 4.6% rise in tech workers’ pay since 2020, with an average salary of $109,176, – overall, there is a very positive outlook for the tech hub regarding salary.
Though the median home price in Austin has risen 21.1% year-on-year from $441,250 to $536,000, Austin is still considerably cheaper than the Bay Area (with employees in the Bay Area expecting to fork out as much as 50% of their salary on rent).
Lower cost of living, a strong startup environment, and business/entrepreneurial incentives (Texas being only one of seven states in the US with no corporate income tax) are all part of Austin’s appeal.
Dubbed the ‘new wall street’ since the pandemic due to an influx of financial companies and top talent relocating to the state, Miami is a highly popular spot for tech businesses.
Miami is also the fourth fastest-growing tech hub by salary, with an 11.4% increase from 2020, and average salaries hitting $92,004.
Interestingly, Miami is also number one in tech job growth in the nation, number one in tech job migration, and number one in the Southeast US in terms of venture capital dollars invested.
The pandemic significantly impacted Miami’s rise as a tech hub, due to many employees finding the lower taxes and laxer Covid-19 restrictions appealing, alongside the rise of ‘work-from-anywhere’ models that put the sunny location on the top of many people’s lists.
An area that Miami is thriving in is fintech and crypto, having hosted the Bitcoin 2022 conference.
One unique element of Miami is its diverse workforce, with the region being ranked as one of the most diverse tech hubs in the nation, with a strong cohort of female tech leaders and local early-stage companies led by women and minority founders.
In line with a common theme amongst other up-and-coming tech hubs, Miami also has strong infrastructure and support for businesses and entrepreneurs, including the South Florida Tech Hub which is helping to contribute to the rising number of startups in the industry.
There are few areas of working life and few industries that the pandemic has not significantly impacted, including tech hotspots in the US.
Areas such as Miami have seen a significant influx of talent and tech-related interest due to the pandemic, whereas other areas such as Austin and Atlanta have been performing strongly year on year as tech hubs for some time.
Though tech hubs such as Seattle and Silicon Valley will likely always top conventional lists in tech in terms of benefits, investment, popularity and salary, that doesn’t make the major achievements of the up-and-coming tech hubs any less significant.
After all, as more tech employees re-evaluate their priorities due to the pandemic, it is likely that the extortionate costs of living and level of competitiveness in traditional tech hubs will be overtaken by the more appealing up-and-coming areas.
Get in touch with the Remit team today to discuss your tech recruitment needs.