Five Fast-Growing Tech Hubs in the USA
This article was published in March 2022. We produced an updated blog in July 2023 on the topic which illustrates 6 up and coming tech cities in the US.
The US tech industry is huge, so big in fact that it is the second-largest driver of the US economy, just behind healthcare. With over half a million tech companies in the US employing over 12 million workers, it may come as little surprise that as a whole, the North American tech sector controls 35% of the global market share. The growth of this industry has been further exacerbated by the sharp rise in remote working solutions.
If you are looking to expand your tech company to the US, or are a tech recruitment specialist looking to hire skilled talent in a thriving region, you may be interested to know where some of the fastest-growing USA tech hubs have emerged right across the country.
1) Pittsburgh
Historically known as the ‘steel city’, the city of Pittsburgh has since established itself as an important tech hub in the US. With over 60,000 tech workers in the city, Pittsburgh is in the process of rebranding itself to the ‘smart city’.
As well as being home to offices of tech-giants like Google, Facebook, Apple, Amazon and Microsoft, the emergence of new tech businesses in the city is well documented in Growjo’s list of top start-ups in Pittsburgh in 2022. In the previous year’s series, the top ten companies were all tech firms.
In 2021, the average tech salary in the city was $98,304, rising 14% from the previous year.
Pittsburgh is proving to be an attractive location for new tech businesses, with the city having its own Innovation District to develop and promote entrepreneurs in the area.
The city’s development has contributed to Pennsylvania’s overall growth in the tech industry, with tech job postings increasing 43% in the first half of 2022 in comparison to the same time period the previous year
2) Atlanta
Atlanta processes around 70% of all transactions involving debit, credit or prepaid cards and therefore cannot be ignored as a staple city in the global Fintech industry. With this in mind, it is unsurprising that the city has earned the name ‘Transaction Alley’.
Potentially more impressive than its place as a Fintech powerhouse is Atlanta’s reputation as the birthplace of highly valued businesses. Over a dozen companies based in the city have grown over the last ten years to valuations above $1 billion, including MailChimp and Calendly.
Atlanta’s continued growth as a tech hub was reflected in its rank as the 3rd highest city for tech job posting volume, sitting behind New York and Chicago.
As a whole, the state of Georgia places great importance on fostering tech talent. The Board of Education has implemented a cloud computing curriculum and are further developing talent through the Georgia FinTech Academy. A local Atlanta non-profit organisation has also received $5.4 million from the US Department of Labor which will be used to train local students in web development and cybersecurity.
Tech innovation centres such as Atlanta Tech Village means that there is a wide range of support for start-ups in the city.
The already-thriving tech community in Atlanta, boasting just shy of 220,000 people in tech employment, coupled with an attractive location in terms of operation costs means that the city is increasing its stake as a growing tech hub in the USA.
3) Chicago
With over 6000 tech companies in the city and just under 250,000 industry workers, Chicago is one of the largest tech employers in the US and is the city of choice for multi-national companies including LinkedIn, Lyft and Adobe.
Already established tech companies moving to ‘The Windy City’ have found the benefits of a flat-rate income tax and lower office rental costs in comparison to traditional tech hubs such as New York and San Francisco. Chicago experienced a 52% in tech job posting volume in the first half of 2022 in comparison to the same period in 2021.
A large number of fastest-growing companies in Chicago are those in tech and the city interestingly boasts the highest percentage of women-owned start-ups in the world. ‘Chicago Women in Tech’ is a community that is committed to supporting and advancing women in the technology industry. The city of Chicago offers a variety of incentives to encourage business to expand or locate in the area.
The average tech salary in Chicago increased 12.6% in 2021 to $106,537 per year, which makes it an attractive area for recruiters who can benefit from margins by making placements in the area.
4) Miami
As a wider trend, Florida has become a new hotspot for businesses in the US. Within that trend, many businesses and individuals have made the move to Miami, with the city seeing a 15% increase in migration in 2021.
Miami saw a surge in new tech job postings in the first half of 2022, recording a huge 104% increase from the same time period in 2021. This was the 2nd highest growth in the US, after the nearby city of Orlando.
Miami is a popular spot for tech businesses due to its diverse and talented workforce. The city is home to the Network Access Point, which is a major switching station for internet traffic to and from Latin America while organisations like BlackRock have set up technology centres in Miami to access bright and multilingual talent.
Organisations such as Wyncode, Refresh Miami and South Florida Tech Hub encourage the growth of tech entrepreneurs in the area, leading to a number of growing start-ups in the tech industry.
The average tech salary in Miami is $92,004 per year, increasing by 11.4% in 2021.
To find out more about why Florida is a great area to open a business, check out our conversation with Yassin Nahi, Director of UK and Ireland at Enterprise Florida.
5) Raleigh
There may be no better place to launch a tech career than Raleigh, the area that makes up the largest part of the North Carolina Research Triangle. After all, 1 in 3 graduates in the Raleigh metro area have a background in STEM.
The city of Raleigh in North Carolina is not a brand new trend for companies to move to which we explored the reasons behind this in a prior blog.
An educated workforce is a major attraction for businesses. Raleigh is producing a steady stream of young, educated talent pool from local universities such as North Carolina State University, Duke University, and the University of North Carolina at Chapel Hill. Between 2015-2019, over 18,000 tech degrees were obtained from the Research Triangle, putting Raleigh in similar terms to Seattle with regards to volume of young tech talent.
The Raleigh area is becoming one of the up-and-coming tech hubs of choice for businesses in America, as it is focused on meeting the demand for talent. The city’s strategic plan is focused on helping the existing workforce gain skills to succeed and building partnerships for employment opportunities. Raleigh’s tech workforce is largely made up of software engineers, and as a whole, jobs in tech account for 7.3% of total jobs in the Research Triangle.
With the area’s diverse and highly-educated population, business resources, and tax incentives, it is little wonder than tech giants such as Lenovo, Epic Games and IBM have forged homes in the Raleigh area.
Apple has pledged to invest over $1 billion in North Carolina including the construction of a new campus and engineering hub in the Research Triangle resulting in the creation of at least 3000 new jobs in AI and software engineering.
The affordable homes, educated workforce, international airport, huge research park, and low property taxes in Raleigh made it the perfect spot for businesses looking to create a presence in the area with connections and resources few other cities can offer.
Raleigh is one of the fastest-growing cities in the US and with current trends, the population of the area is due to double in the next two decades. Therefore, right now there is a great opportunity to enter the tech scene in the Research Triangle.
Honourable Mention: Austin
From its business-friendly atmosphere to its warm and sunny climate, we have previously explored the reasons why Austin has become a great hub for tech companies.
The average tech salary in Austin is $109,176, growing 4.6% in 2021, and we have commonly seen recruitment agencies grasp the opportunity by expanding and specialising in the area. High salaries in the US, attracts quality talent, and means a healthier profit for recruitment companies making placements.
Austin has a young working population and is the most concentrated area for millennials in the US while also ranking as the 9th most concentrated area for Gen Z workers.
If you want to find out more about why Austin, Texas is an emerging USA tech hub, we recently sat down with the US Head of Operations at RocSearch to talk about his experience relocating to Austin.
Average Tech Salaries in 2021
Tech salaries have increased across the US by an average of 6.9%. Growth of the tech industry in the last few years demonstrates that you don’t have to operate in Silicon Valley or the traditional tech hubs in the USA to make connections and grow your business.
Ready to Take the Next Step in Your US Business Expansion Journey?
With tech companies and salaries on the rise thanks to a demand, salaries have increased across the US by an average of 6.9%. Growth of the tech industry in the last few years demonstrates that you don’t have to operate in Silicon Valley or the traditional tech hubs in the USA to make connections and grow your business.
Whether you want to get set up in one of those fast-growing tech cities or have your sights set on a different location, as an employer of record, we are registered in all 50 US States and can simplify your business needs.
We take on the responsibility of your workforce so that you can continue to run your business smoothly. If you would like to discuss your business needs, then connect with us today!
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.