Watch out, Silicon Valley.
What’s happening: The pandemic-era exodus from traditional big tech hubs is raising salaries in smaller cities such as Denver, and giving spots like the San Francisco Bay Area a run for their money when it comes to recruiting top talent.
- Spurring the salary shift is the prevalence of remote work opportunities, which have soared since the start of the pandemic.
Driving the news: Hired’s State of Tech Salaries annual report, published this month, ranks Denver third for the highest average local salary increases across the country.
- The Mile High City saw a 10.6% jump in average tech salaries between 2021 and 2022, trailing only Philadelphia and the Dallas-Fort Worth areas.
What they’re saying: “We’ve seen climbing salaries, aggressive hiring and layoffs — all at once. However, the hiring landscape remains competitive as companies innovate and diversify their teams through remote work,” Hired CEO Josh Brenner said in a statement.
- “We’re seeing salaries rise globally as employers expand their talent pools and candidates find more opportunities outside their backyards,” he added.
Yes, but: When it comes to salary, Denver still lags behind the top five metros of San Francisco, Seattle, New York, Boston and Austin, the report found.
The big picture: Denver has become a magnet for white-collar workers — suddenly free to work from home and relocate from pricey job centers like California, and leverage their higher salaries to buy cheaper homes.
- The influx of out-of-towners puts the Mile High City in the top 10 nationwide where the purchasing power of outsiders outpaces that of existing residents — a factor that’s significantly driving up home prices and squeezing housing supply.
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