The New York City metropolitan area officially employs more technology workers than the San Francisco Bay Area. This is according to an annual CBRE report on North American technology talent, which states that the tech workforce in the New York metropolitan area reached 394,300 people in 2023. This figure marks an increase of 8.4 per cent compared to 2022, corresponding to the creation of 30,640 new jobs.
In contrast, San Francisco's technology job market experienced a decline of 8,440 jobs, a decrease of 2.2 per cent, bringing the total number of employees down to 382,490. This trend highlights a remarkable shift in the geographical distribution of technology jobs within the United States.
Reasons for the Boom in New York
The growth in technology jobs in New York is being driven by several factors, according to CBRE experts. These include the breadth of industries in the city, its strong economy, and the availability of technology talent. These conditions provide a stable environment for the growth of technology companies, attracting both start-ups and established corporations.
In contrast, the Bay Area suffered from a slowdown in venture capital funding and major layoff waves at well-known technology companies. This led to a net decrease in jobs, affecting its position as a leading tech hub. Cost structure and attractiveness for talent also played a role in this.
Property Market and Investments
The development of the technology job market has direct implications for the property market in both cities. A growing workforce in New York leads to increased demand for office space and residential property, which fosters investment in these sectors. The strength of the technology sector is an indicator of future economic development and thus of the attractiveness of the property market.
This shift in ranking underscores the growing importance of New York City as a global technology hub and signals a broader diversification of the technology sector beyond traditional centres. For property investors, this means a re-evaluation of risks and opportunities in the respective metropolitan areas.
