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Forget San Francisco: Here are 5 rising tech hubs across the US where housing is still affordable for software engineers
Forget San Francisco: Here are 5 rising tech hubs across the US where housing is still affordable for software engineers
Libertina BrandtOct 17, 2019, 18:43 IST
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A recent study by real-estate brokerage Redfin reveals five emerging tech hubs across the US where software engineers with a median income can still afford to buy a home.
Redfin teamed up with LinkedIn to gather the percentage of year-over-year job growth and the median income for software engineers in each hub.
The share of affordable homes in each tech hub was found using Redfin's housing affordability dashboard. The study considers homes affordable if they cost less than 30% of the owner's gross income.
Home prices in San Francisco are so outrageously high that even people with high-paying tech jobs are being priced out.
According to Zillow, the average price of a home in San Francisco is $1,351,500, making it one of the most expensive cities in the country. The median income for a software engineer in the Bay Area is $186,300. However, even a paycheck like that is no match for the area's soaring housing prices.
Seattle-based real estate brokerage Redfin recently released a study that reveals five emerging tech hubs across the US where software engineers making a median salary can still afford to buy a home.
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By teaming up with LinkedIn, Redfin was able to gather both the job growth and median income for software engineers in each hub. The study only looked at metro areas with emerging tech scenes where the year-over-year job growth for software engineers was greater than 3% as of January 2019.
The share of affordable homes in each tech hub was found using Redfin's housing affordability dashboard. The study considers homes affordable if they cost less than 30% of the owner's gross income.
Keep reading for the list of five rising tech hub with affordable housing, arranged in no particular order.
Charlotte is a city of 859,000 inhabitants in North Carolina. The Charlotte Douglas International Airport is the second-largest hub for American Airlines. Six Fortune 500 companies have headquarters based in Charlotte, including Bank of America and Lowe's.
Year-over-year job growth for software engineers: 4.1%
Median income for software engineers: $80,000
Median home-sale price in Charlotte: $269,000
Percentage of income software engineers would need to spend on housing: 18.9%
Share of affordable homes for sale for software engineers: 62.9%
Buffalo, New York
Buffalo is the second-biggest city in New York. It is home to around 260,000 people. Buffalo is often considered one of the country's most affordable cities for homeowners. In fact, it was ranked No. 15 in SmartAsset's recent ranking of US cities where renters are becoming homeowners the quickest.
Year-over-year job growth for software engineers: 4.1%
Median income for software engineers: $71,500
Median home-sale price in Buffalo: $170,000
Percentage of income software engineers would need to spend on housing: 13.3%
Share of affordable homes for sale for software engineers: 76.3%
Year-over-year job growth for software engineers: 3.7%
Median income for software engineers: $70,000
Median home-sale price in Grand Rapids: $217,000
Percentage of income software engineers would need to spend on housing: 17.4%
Share of affordable homes for sale for software engineers: 64.7%
Colorado Springs, Colorado
Colorado Springs is located near the Rocky Mountains in Colorado. It is home to over 400,000 people. Colorado Springs has long been home to an emerging tech scene. In fact, in 2017, NerdWallet named the city one of the best places for tech jobs.
Year-over-year job growth for software engineers: 3.4%
Median income for software engineers: $87,000
Median home-sale price in Colorado Springs: $320,000
Percentage of income software engineers would need to spend on housing: 20.6%
Share of affordable homes for sale for software engineers: 52.6%