Seattle retains #2 ranking on CBRE's annual Scoring Tech Talent report

Seattle remained at the number two spot on CBRE’s Tech Talent Scorecard, part of its sixth-annual Scoring Tech Talent Report, which ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent. Exceptional quality tech talent and the ability to entice tech workers from outside the region with high wages and more affordable housing options has led to a surge of growth from local and west coast based tech firms.

The top five markets for tech talent in 2018 were the San Francisco Bay Area, Seattle, Washington, D.C., Toronto (the first time a Canadian market made the top five) and New York, all large markets with a tech labor pool of more than 50,000.

The Tech Talent Scorecard is determined based on 13 unique metrics, including tech talent supply, growth, concentration, cost, completed tech degrees, industry outlook for job growth, and market outlook for both office and apartment rent cost growth.

Seattle stood out in the report in a number of other key areas:

• With a rate of 63.1 percent, Seattle has the most educated workforce in North America of residents over the age of 25 holding a bachelor’s degree or higher.

• Seattle ranks second for top quality tech talent and has the sixth largest tech talent labor pool.

• Seattle’s millennial population growth also grew the most at 22.7 percent, now ranking sixth for concentration of millennial markets.

• Over 20,000 tech jobs were added in Seattle in the past five years; as the market attracted new talent, the average wage grew 21 percent, making it the second highest compensation market.

• Comparing the annual average apartment rent with the annual average tech-worker salary, Seattle’s rent-to-wage ratio for tech employees is 17.5 percent, well below similar markets and the affordability standard of 30 percent of income to housing.

“Seattle has continued to solidify its spot as a top city for tech talent,“ said Matt Walters, Senior Vice President, CBRE. “The city has experienced an unprecedented growth from local, national and global tech companies, which has continued to strengthen the region’s talent pool, allowing Seattle to sustain its number two rank right behind San Francisco.”

“In the past year, we’ve seen a growing number of tech companies building their presence in Seattle, many for the first time,” said Brian Biege, Senior Vice President, CBRE. “Thanks to Seattle’s quality of talent and the innovation happening here, this trend will likely continue for the foreseeable future.”

Tech labor concentration – or the percentage of total employment – is an influential factor in how “tech-centric” the market is and its growth potential. Seattle has a tech talent labor pool of 145,140, or 8.8 percent of its total employment, compared to the national average of 3.5 percent.

Top 10 tech talent markets:

CBRE's interactive Tech Talent Analyzer found the San Francisco Bay Area, Austin and Seattle to be the most competitive markets to hire tech talent based on labor market supply/demand, wage costs and talent quality. 

“Strong economic conditions and tightening labor markets are constraining tech talent job growth and increasing costs,” said Colin Yasukochi, director of research and analysis for CBRE in the San Francisco Bay Area. “This has accelerated the expansion of tech talent pools across the U.S. to meet this demand, starting with increased numbers of tech degree graduates. Accordingly, demand for commercial real estate in large and previously under-utilized regions is on the rise from both start-ups and established companies.”

View the full report here. To view individual market statistics and rankings, including rankings on the Scorecard, access CBRE’s Tech Talent Analyzer.