Which tech hubs pay tech professionals the most? While older hubs such as Silicon Valley and New York City are famous for shelling out sky-high salaries for specialized technology skills, the burgeoning tech scenes in other cities can likewise translate into significant paychecks.
According to Dice’s latest Tech Salary Report, tech salary growth slowed in 2023, dipping slightly to $111,193 (compared to an average salary of $111,348 in 2022). Tech professionals with five or fewer years of experience, along with talent working in major tech hubs such as Silicon Valley, Seattle and Boston felt this salary stagnation the most, while other regions enjoyed an increase in compensation.
The Salary Roller Coaster
Several factors likely play into salaries leveling off. Just two years ago, the tech sector experienced unprecedented salary growth, with the average salary shooting up almost 9 percent between 2019 and 2021. In 2021, there was also a notable increase in the number of tech jobs, with CompTIA reporting an increase of 260,000 positions. Tech companies everywhere were flush with cash and used those funds to hire and acquire aggressively; some tech giants even hired specialists beyond their needs solely to keep them from being hired by rivals.
However, what goes up must come down. Organizations cut back on their tech spending, forcing tech executives to make hard decisions about headcount. Several notable layoffs took place last year, and 10 percent of our survey respondents reported being personally affected by layoffs.
According to CompTIA’s analysis, more than 211,000 jobs were eliminated from the tech sector last year, although it’s important to note that loss is still smaller than the number of tech jobs gained in 2021. Following the layoffs in early 2023, we’ve begun to see some of the biggest names in tech (such as Meta and Salesforce) rehiring, suggesting that we’re through the worst of a sharp but brief correction in the tech talent market.
Cities and States Enjoying Significant Tech Salary Growth
As companies across the country focus on hiring the tech professionals they need to build and maintain their respective tech stacks, we’ve seen notable salary growth in regions like Wisconsin, Tennessee, Utah and Maryland. Here’s a state-by-state breakdown:
Cities beyond the traditional tech hubs have also enjoyed compensation increases; highlights include San Antonio, TX, Philadelphia and Orlando, FL:
As workers respond to a higher cost of living by moving to more inexpensive areas, they are finding plenty of opportunities to grow their careers, and the result is more up-and-coming tech hubs across the nation. Industries such as government, aerospace and defense and retail also saw significant tech salary growth, hinting at increased demand for tech professionals outside of the tech industry.
Here’s the bottom line: If you’re a tech professional just starting out in your career, you don’t need to move to a well-established tech hub such as Silicon Valley; there’s a good chance a robust tech scene exists right in your backyard. For those on the job hunt, you may want to expand your search to other industries, even ones you don’t necessarily associate with tech. And no matter what your job-hunting strategy is, always keep in mind that a job is more than just a salary: You should always consider a variety of factors, including benefits, schedules, and company culture—these can produce a great working experience and a satisfying work-life balance.
