And while Silicon Valley continues to lead the pack, Phoenix, Austin, Nashville, Indianapolis, Charlotte and Salt Lake City all made the top 10 list for growth in high-tech jobs, according to the latest available citywide data from real estate services firm CBRE, which analyzed U.S. Bureau of Labor Statistics data.
The trend of startup money and jobs flowing beyond the Bay Area is no accident. Startup founders say pay for employees in other tech hubs such as Seattle, Salt Lake City and Birmingham, Ala., tends to be lower than it is the Bay Area. Startup workers outside Silicon Valley also tend to job-hop less often and demand fewer perks like and hammocks in the office.
Investors say they like those non-Bay Area startups, too, because valuations tend to be a bit lower, which means each dollar of investment buys them a larger piece of a startup. For example, PayPal co-founder and venture capitalist Peter Thiel recently mentioned he was hunting for investments outside of Silicon Valley.
Becoming a tech hub has downsides, too. The emergence of spots like Silicon Slopes (Salt Lake City), Silicon Beach (in the Los Angeles area) and Silicon Mountain (Denver) has also coincided with big jumps in office rental costs in some spots.