Tech Salaries vs. Rising Rents

shutterstock_8527795

Technology-industry salaries have risen significantly over the past few years, hitting an average of $96,370 in 2015, according to the annual salary survey from Dice. Experienced tech pros with in-demand skillsets can demand much more, in addition to other perks such as equity and flexible hours.

The reason behind this rise is simple: employers with a desperate need for tech help are willing to pay top dollar to those with the necessary skills. Some 23 percent of those who responded to the Dice salary survey said their salary increases came from changing jobs. In tech hubs such as Silicon Valley and New York City, skilled tech pros have their pick of positions.

But in some areas, a significant portion of tech pros’ rising salaries are going towards ultra-expensive housing, affecting their overall standard of living. That’s led some to leave Silicon Valley in favor of lower-cost cities such as Denver and Portland.

According to Dice, tech-job postings dipped 6 percent in the past twelve months, even as they’ve risen by double digits in other cities such as Austin and Seattle. Thanks to the wonders of remote work and satellite offices, tech pros can pick up their lives and move to areas where the rent for a one-bedroom isn’t $5,000 per month (that is, unless they’re held in place by other factors, such as family concerns).

For employers trying to lure tech pros to work for them, the housing costs in some areas could complicate negotiations; a decent salary by one city’s standards is practically poverty wages in a high cost area. If they want to pull in the best of the best, they’re going to have to take that into account. (And if you’re Facebook, you can just take your billions and create the 21st century version of a company town.)

Image Credit: Andrew Zarivny/Shutterstock.com

Comments

2 Responses to “Tech Salaries vs. Rising Rents”

April 22, 2016 at 11:14 pm, Jeffery Collins said:

I am being offered less miney in 2016 than I was making in 1990, when Prime Computer Inc (s server manufacturer like Wang, Digital Electronics, and IBM). Just last year, all of our database admins, SQL, C++, .NET programmers, web support, Microsoft admins, HP/ICE, Lynx, and IBM SIX and As/400 admins and the company National Support Helpdesk for 36504-20-16 pharmacies all lost their jobs and all of their management.
All those jobs went to the TaTa Corporation of India. Our COO said all fortune 500 companies are going to have all IT, networking, and helpdesk ran from India in the next few years. Our company was purchased for 12.5 billion and is now part of CAVS pharmacy, which is controlled electronically from India.Lay off was middle of July 2015 and still looking for a job. Cannot find one that pays what I was started at in 2007. DICE information is not very accurate.Derry and IT TECH are not releasing this information.

Reply

April 28, 2016 at 12:13 pm, Chris said:

Considering I’m working at a Fortune 50 company that is increasing its IT presence in the US while downsizing externals (e.g. from Tata and Accenture), I’d say your COO is wrong.

This isn’t the first time I’ve heard somebody on the internet say everything’s going to be outsourced. There are too many challenges associated with outsourcing that makes it impractical. Not to mention the quality of work is significantly lower.

Reply

Post a Comment

Your email address will not be published.