Tech. Tech. Tech. It’s all the rage since Amazon started shopping for their second location. And since Denver remains a potential Amazon city, I thought it would be interesting to analyze popular, emerging tech cities for their investing attractiveness. (And again, a big shout out to my friend and fellow investor, Jennifer Ward, on this for helping me pull the numbers and sources.)
We looked at six cities that are not at the top of the tech game yet, but are mentioned frequently in articles and conversations about tech and San Fran flight. Those six cities are Denver, Salt Lake City, Seattle, Phoenix, Austin, and Portland. And we looked at 10 factors (all with equal weight): rent-to-value, rent-to-income, taxes-to-value, insurance-to-value, annual appreciation, unemployment, crime, population growth, tech job growth, and an educated population.
We’ll analyze each city individually, but when looking at the table below, know this: 1) green is good, 2) the averages are listed at the bottom, and 3) if you’re interested in any city on here that we don’t service (i.e. not Denver), reach out and we’ll get you connected to an agent in that city who is investor friendly.
6 U.S. Cities Analyzed for Tech Job Growth & Investing Potential
We looked at 10 factors for this study: rent-to-value, rent-to-income, taxes-to-value, insurance-to-value, annual appreciation, unemployment, crime, population growth, tech job growth, and an educated population.
I help people buy and sell real estate in Denver, so this seemed like the obvious place to start. Denver was good on five of the 10 metrics, with strong marks for rent-to-value, taxes, unemployment, crime, and the population’s education. Denver returned outside of the average (in a bad way) on rent-to-income, insurance-to-value, annual appreciation, population growth, and tech growth. The negatives are a little misleading, as the average reflects performance against the other cities in this analysis, not cities nationwide. Based on the data I could pull, Seattle has the strongest tech growth by far (6.7), and the only two other cities I could locate this data point for (Denver and Austin) were at 0.7. None of the other cities even registered, so in a way, Denver comes in strong on 6 of the 10 metrics.
The two factors I care most about here are: 1) Denver’s educated population (all employers like this) and 2) Denver’s rating as a tech city….