5 emerging tech cities where home prices are soaring alongside innovation
The landscape of the American technology industry has changed in recent years.
While Silicon Valley remains the nation’s largest city, a new group of cities is emerging as technology hubs, helping to reshape local economies and real estate markets.
According to a report published by Mansion Global, several promising technology centers are attracting major companies and top talent, boosting home prices in their respective areas.
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Atlanta
Atlanta is becoming a hotbed of financial technology (fintech): reports say the city now processes 70% of the world’s financial transactions. This infrastructure has paved the way for a fintech scene where companies like Fiserv, BitPay, and Kabbage compete with large traditional banks.
But the tech boom isn’t just limited to fintech: Major companies like Panasonic, Intel, and Google are based in the city, with the latter set to open a new 500,000-square-foot office in July 2022.
The influx of tech jobs — now about 112,000 jobs at 8,500 companies — is reshaping Atlanta’s real estate market, according to the report. The combination of high-paying jobs, top universities and a relatively low cost of living has made Atlanta an increasingly attractive city for companies and tech workers, putting upward pressure on home prices.
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Salt Lake City
Salt Lake City’s tech roots date back to 1976, when WordPerfect was developed at Brigham Young University. Today, the city has grown into a full-fledged tech hub, housing more than 59,600 tech professionals, according to a Mansion Global report.
The city’s tech industry is diverse, ranging from big-name companies like Adobe and eBay to homegrown successes like Overstock.com and Instructure. The startup ecosystem is particularly vibrant, with approximately 70% of Salt Lake City’s venture capital funding (totaling approximately $130 million) going to tech ventures.
The tech boom is impacting Salt Lake City’s job market and real estate, with home prices rising as tech talent flocks to the area.
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Las Vegas
Las Vegas has diversified beyond its traditional entertainment and hospitality sectors, with technology emerging as a key driver of economic growth: the city has carved out niches in sports tech and fintech, attracting companies such as DraftKings, Sleeper and Shift4.
The expansion of major league sports in Las Vegas, including the NHL’s Golden Knights, the NFL’s Raiders and the soon-to-be MLB Athletics, has poised the ground for sports tech: DraftKings, for example, opened a 90,000-square-foot tech hub in the city in March 2023.
Mansion Global noted that the sports tech workforce in Las Vegas is expected to grow from 7,700 in 2023 to 9,600 by 2028. The fintech sector is thriving as well, with more than 15,700 employees as of 2022 and projected to continue growing.
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Northern Virginia
Northern Virginia’s tech industry gained national attention in 2018 when Amazon announced plans to build a second headquarters in Arlington and Alexandria, but the region’s tech history goes back much further, dating back to the late 1980s, when AOL was founded in Loudoun County.
Today, Northern Virginia is home to a diverse range of technology companies, from large corporations such as Amazon, Google and Microsoft to defense contractors with technology businesses such as General Dynamics and Northrop Grumman.
The implications for the local real estate market are big: Amazon plans to hire 25,000 people at its National Landing headquarters by 2031, creating a surge in housing demand in the area, the report said.
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Raleigh
Part of North Carolina’s Research Triangle, Raleigh has long been a hub of innovation, but in recent years the city’s tech industry has expanded beyond its traditional strengths in big data and biotech to include emerging fields like clean tech, cybersecurity and artificial intelligence.
The city’s tech ecosystem includes major corporations such as IBM, Cisco, and Epic Games, as well as startups, and the Triangle Tweener list, which tracks local startups, currently includes about 300 companies across a range of technology sectors.
Staffing firm Hatch IT predicts that Raleigh will be overtaken by Washington, D.C., to become the second-largest tech center on the East Coast by 2025. This growth is transforming downtown Raleigh, sparking a real estate boom that is turning what was once primarily a government and commercial district into a residential and cultural hub.
As the five cities continue to cement their status as technology hubs, their real estate markets are likely to expand.
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This article, “5 Emerging Tech Cities Where Home Prices Are Soaring Alongside Innovation,” originally appeared on Benzinga.com.
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