Austin Remains One of the Tech Industry’s Hottest North American Locations
According to a recent survey released by CBRE Group, a commercial investment and real estate services group, Austin continues to be one of the tech industry’s hottest North American locations. The survey placed it fifth among cities and regions in the U.S. and Canada, behind such stalwarts as the San Francisco Bay Area, Washington D.C., Seattle and New York City. The list was compiled using 13 metrics, including tech talent supply, growth, concentration, cost, completed tech degrees, industry outlook for job growth and the market outlook for office and apartment costs.
A major factor in Austin’s ranking is the number of college graduates in the area. Between 2010 and 2014, Austin had 9,758 graduates, and the city added 24,950 tech jobs between 2011 and 2015. According to the report, the Austin job market had a net gain of 14,382.
Not surprisingly, the high number of graduates is mirrored by Austin’s relatively young workforce, which includes both recent graduates of the area’s several colleges and universities as well as recent graduates relocating to the area. According to the report, since 2009, Austin’s population of 20-somethings has grown by 12,800 — a 7.5 percent increase. This same demographic represents roughly 11 percent of the total Austin population, reflecting a millennial presence that is significantly higher than the national average and among the highest of the 50 markets covered by the CBRE Group report.
That same report concluded that the strength of the tech sector is a crucial economic driver for the Austin metropolitan area and the nation at large: “Beyond job creation, tech-talent workers are fueling new innovation and adapting technology within unconventional tech sectors to increase productivity and strengthen the national economy.”
An indicator of the stout state of the local economy is that Austin has led all other metro areas in the CBRE’s top 5 in occupied office space. As of the first quarter of 2016, the vacancy rate had fallen from 12.2 percent to 10.1 percent over the past five years, while the per-square-foot price of office space rose by 30 percent over the same five-year period.
With Austin continuing to gain credibility in the tech industry, population growth shows no signs of cooling in these hot summer months.
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