U.S. Tech City Ranking Report Identifies Top Metro Areas for Information Technology Talent

by King White, on Jul 25, 2017 4:28:30 PM

The IT sector is estimated to make up 2.58% of the national labor force, second only to healthcare (8.14%) among our professional service clusters. As the demand for these tech savvy workers continues, Site Selection Group released a report ranking 187 metro areas across the U.S. based on their attractiveness for finding tech talent.

The report evaluated major metro areas such as Washington D.C. and New York as well as many smaller, up-and-coming metro areas such as Eugene, Oregon; and Gainesville, Florida. The study was developed to help companies during the site selection process as they look for the optimal locations for their software development, software engineering, application development, technical support, shared service centers and other related technology operations. To view the full U.S. Tech City Ranking Report, click here to download.

IT labor market supply variables utilized in the study
The analysis utilized multiple location variables that are frequently used by site selection experts such as labor force size, population growth and unemployment rate. In addition, some very specific tech factors such as information technology labor force, population of millennials, and annual degrees awarded in computer and information sciences were analyzed.

The demand for technical talent was also evaluated
The demand for technical talent was also evaluated to understand which metro areas have the most activity by employers seeking tech talent. A comprehensive analysis was undertaken of IT job postings in correlation to the size of the IT workforce. Other factors such as industry growth projections and number of IT patents helped to assess the demand for talent in each market.

Labor costs played an important role in the study
With wage inflation increasing rapidly in many markets, it can be challenging to get an accurate assessment of the cost of tech workers, which means it is very critical to conduct on-the-ground due diligence through employer and staffing interviews. For purposes of the analysis, the study took a snapshot of cost factors such as the average annual salaries for some of the most sought-after IT positions as well as looked at the cost of living for each metro area. 

Real estate costs were also benchmarked to understand the operating costs
Operating costs related to real estate have also become a major concern of companies as they seek the best place to make a long-term investment in a metro areas. Tech market leaders such as San Francisco are seeing office space going for over $60 per square foot per year while some emerging geographies such as Lincoln, Nebraska, offer a very low cost — below $20 per square foot per year.

Though information technology workers are in short supply nationally, this research shows that forward-looking companies can find talent at more reasonable prices by looking where others are not. The identification of mature, developing and emerging metro areas to consider can be found in the study. To get your copy of the U.S. Tech City Ranking Report, click here to download it or contact one of Site Selection Group’s experts at

Download our US Tech City Ranking Report

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