The tech mecca of Silicon Valley has become the victim of its own success. Although home prices in the San Jose, California, area have tumbled recently, they remain among the highest in the country. The median home price there hovers close to $1 million.
As a result, many tech workers are fleeing Silicon Valley and its equally expensive northern neighbor, San Francisco, in search of lucrative jobs and affordable housing. They’re landing in places like Dallas, which ranks No. 2 in a new Realtor.com study pinpointing the top 10 cities where tech workers can afford to live in the U.S. Dallas outranks Austin, which comes in a close No. 6.
“While Silicon Valley will continue to be the tech industry’s epicenter, other secondary markets are now providing not only incredible job opportunities, but the opportunity to build a life as well as a career,” David Armendariz, general manager of the technology division at recruiting firm Lucas Group, tells Realtor.com.
For the study, Realtor.com examined the 500 largest U.S. metro areas and ranked them according to five factors:
- Number of employees in the tech sector
- Number of publicly traded tech companies
- Percentage of job listings in the tech sector
- Average salaries for tech jobs
- Median list price for homes
Realtor.com weeded out spots where median home prices surpassed $400,000.
Dallas, with a median home price of $349,950, captured second place in the ranking. In first place on the list is Huntsville, Alabama.
“While our house prices have been climbing, it’s still a very affordable market compared to the West Coast,” Ted Wilson, principal at Residential Strategies in Dallas, tells Realtor.com.
Aside from the below-$400,000 median home price, Realtor.com cites Dallas’ expanding tech workforce and a median tech salary of $84,614, as well as the presence of the country’s largest arts district.
In the No. 6 spot is Austin, where the median home price stands at $369,998, according to Realtor.com.
Highlighting Austin’s status as a “mini-Silicon Valley,” Realtor.com points out that the Austin area now boasts the fifth largest share of IT jobs in the country, thanks to major employers like Amazon, Apple, Dell, and IBM. The website says Austin’s other draws include SXSW, indie bands, and breakfast tacos.