9 Cities Top Tech Workers Are Moving To: Report

US-CALIFORNIA-HOMELESSNESS-TECH-SANFRANCISCO — (Photo : (Photo credit should read JOSH EDELSON/AFP via Getty Images)) Downtown San Francisco, California is seen from above on February 6, 2019. - San Francisco, once home to flower power, hippies and dope, has changed dramatically: these days, it is all about Facebook, Twitter and Google, the multi-billion dollar tech giants who have turned it into one of the world's most expensive cities to live in. Average monthly rent for a two-room apartment in the city by the bay now runs to $3,700, the highest in the United States. And a household of four with annual earnings of less than $117,400 is officially officially considered "low income." "We see now a kind of homelessness that did not occur before, people who work, that is new, said Cary McClelland, author of the 2018 book "Silicon City" which examines how the city has changed.

The top talent in the tech industry is now relocating to other states in the United States amid mass layoffs and the AI boom.

A recent analysis conducted by SignalFire found that, between 2022 and 2023, many top tech talent moved out of tech hubs like Boston, San Francisco, and Seattle partially due to the high costs of living in the cities. Another reason cited in the analysis was the massive layoffs in the tech industry in 2022, which impacted 262,735 workers.

Of all tech hubs in the country, San Francisco saw the biggest net loss in tech talent, at -3.5%. Seattle lost just under 2.5%, and Boston lost more than 0.5% over the same period.

Where Are Tech Workers Moving To?

The top nine cities tech workers relocated to between 2022 and 2023 were:

New York

The analysis found that 15% of all relocating tech employees moved to the Big Apple, for a net gain of about 3.5% in tech talent. Those who relocated came from tech hubs in the US, including Boston, San Francisco, and Seattle, among other cities.

While the study cites "higher costs of living" as one reason for the exodus, it is important to note that New York boasts higher rent prices than the national average. For instance, the median rent in New York City is $3,525, per Zillow. That's 68% higher than the national median rent of $2,100.

Austin

While New York had the biggest share of relocating tech talent, Austin was the fastest-growing city for tech workers by percentage. Since 2019, the city saw a 23% increase in the number of tech employees working at local VC-backed startups. The big tech industry in Austin also saw a 44% increase in headcount during the same period.

In total, Austin had a net gain of about 1.5%.

Other cities that tech workers relocated to were Los Angeles, Denver, San Diego, Miami-Fort Lauderdale, Dallas-Fort Worth, Nashville, and Tampa-St.Petersburg.

In comparison, the cities that lost the most number of tech talent between 2022 and 2023 were San Francisco, Seattle, Boston, Phoenix, Washington, Sacramento, Portland, Detroit, and Provo.