Raise You

What to Know: Austin’s tech workers make, on average, 46 percent more than their counterparts in San Francisco—when costs of living are factored in.

“For the eighth year in a row, Austin was the nation’s fastest-growing major metro area from 2017 to 2018,” the Austin Business Journal reports. “And, for the fourth year in a row, Austin tech workers have the highest average salary when adjusted based on cost of living, according to a new report by careers site Hired. In 2018, Austin’s tech workers were making an average of $125,000 a year — up 6 percent compared to the year prior. For some perspective, Hired says an Austin tech employee would, on average, need an $83,000 raise to maintain the same standard of living in San Francisco as they have in the 512. And it’s the third year in a row that the Austin metro tops the list of where tech workers’ salaries stretch the farthest.”

The TPPF Take: Much of the difference comes down to housing costs.

“Public policy decisions play a big role in the cost of housing,” explains TPPF’s Chuck DeVore. “Housing market studies indicate that restrictive land use policies can account for from 30% to as much as 60% of the price of a house. The Austin market still benefits from good policy decisions in the past. But if current trends continue, and Austin further restricts its market, our edge against cities like San Francisco can slip away.”

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