Salt Lake City ranked #3 on CBRE’s list of tech talent momentum markets, a measurement of the change in tech job growth, as part of its fifth annual Scoring Tech Talent Report, which ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent. Salt Lake City was also ranked as the #10 lowest-cost market based on one-year wage and rent obligations.
The report, which can be viewed in detail by market in the interactive Tech Talent Analyzer, finds that tech job growth gained momentum in 28 of the 50 markets. This means job creation grew faster in the past two years (2015-2016) compared with the prior two-year period (2013-2014). Salt Lake’s tech talent pool grew 22.2 percent from 2015 to 2016, an increase of 23.0 percentage points compared to the previous two years. Contributing to this growth, Salt Lake City also ranked as the #5 most concentrated millennial market in the nation, with millennials making up 21.8 percent of Salt Lake City’s urban population, behind only Madison, Wisc., Pittsburgh, Boston and Richmond.
The top 10 momentum markets and their associated tech talent job growth rates were:
“This year’s report shows the top 10 markets for momentum, all moderately priced, grew at least 10 percent faster during the recent two-year period. Tech employment growth has a multiplier effect that positively impacts economic growth, which in turn can have an immense impact on commercial real estate,” said Colin Yasukochi, director of research and analysis for CBRE and the report’s author.
Salt Lake City also stood out in the report in a number of other key areas:
• Salt Lake City ranked the 10th-largest tech labor pool among small markets (labor pools comprising less than 50,000 tech employees)
• At 8.4 percent, Salt Lake City had the eighth-highest millennial population change for small tech talent markets, significantly above the U.S. average of 4.6 percent, from 2010 to 2015.
• Salt Lake City ranked #23 on the Tech Talent Scorecard
“Salt Lake City has long been known for its young, educated workforce, but this report really highlights the importance of the millennial workforce on the local tech market—and, in turn, the local economy,” noted Eric Smith, senior vice president in the Salt Lake office. “The combination of a growing, youthful workforce with an advantageously low cost of running a business makes Salt Lake City an ideal location for technology companies to call home.”