MARKET INTEL: Top Ten Metros by Net Tech Job Gains - Multifamily and Office Rent Growth

June 23 - 2022

**This research piece is created with CompStak’s exclusive data

Last week, CompStak launched its partnership with RealPage, the industry’s best in class provider of residential real estate market data, integrating RealPage’s multifamily rental market data into CompStak’s platform. In commemoration of this important partnership, this week we are presenting the top ten metros for tech employment growth and how multifamily and office rents have trended in these key tech markets using RealPage data and CompStak’s exclusive lease transaction data. 

According to CompTIA’s State of the Tech Workforce Cyberstates 2022 report, the top ten metros for net tech employment growth expanded by 1,008 to 5,321 workers or 0.3% to 2.6%. Nationwide, net tech employment growth totaled 79,922 or 0.9% growth, with another 2.0% growth anticipated by year-end 2022. 

 

Net Tech Employment and Multifamily Rent Growth Outpaced the Nation in Six out of these Ten Metros from 2017 to 2022

 

  • Notably, eight of these ten metros had net employment growth that outpaced the nation overall (10.0%) and seven outpaced effective rent growth in the U.S. overall (33.0%) from 2017 to 2022, according to RealPage.

  • Six outpaced the national average in both categories including: Austin-Round Rock, Salt Lake City/Ogden/Clearfield, Dallas-Plano-Irving, Charlotte-Concord-Gastonia, Phoenix-Mesa-Scottsdale and San Diego-Carlsbad.

  • According to RealPage’s multifamily data, the top ten tech markets had effective rent growth ranging from 15.4% in the Washington-Arlington-Alexandria metro area to 71.2% in the Phoenix-Mesa-Scottsdale metro area from April 2017 to April 2022.  

  • Net tech employment growth from 2017 to 2022 (projected year end) ranged from 7.3% in Washington, D.C. to 25.3% in Seattle, according to CompTIA’s report. 

  • In this group, Salt Lake City ranked similarly for rent growth and net tech employment, placing 2nd and 4th, for rent and net tech employment growth, respectively.


The most recent median base office rent for tech and media deals is closer to pre-pandemic peak than the overall market average for these ten markets combined, according to CompStak’s data.

 

Finally, the median tech wage in nine of these ten metros supports paying 30% or less of income on the average annual rent, suggesting that cost of living makes these metros competitive for tech workers

Based on the commonly accepted definition of housing affordability, nine of these ten metros have a median tech wage that supports paying less than 30% or less of monthly income on rent, according to RealPage’s effective rent data for each metro. 

 

Are you interested in tracking both office and multifamily performance in tech markets across the U.S. using best in class data from CompStak and RealPage? Get started with CompStak for more multifamily and office market intelligence.

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