This year, as tech companies search for new talent and opportunities, the Southern U.S. continues to rise as a choice destination. Defined by affordability, specialized industries and world-class universities, the region offers fertile ground for growth. With institutions like Georgia Tech — which produces more tech graduates than any other college in the nation — as well as Duke University and the University of Texas, the South’s talent pipeline is stronger than ever.
Accordingly, from the broad appeal of Texas’ Austin and Dallas to the niche specializations of Huntsville, Ala., and Wilmington, N.C., Southern metros are attracting investment, companies and talent. With that in mind, this year’s study ranks the top 20 Southern metro areas with populations of more than 200,000 by evaluating factors like tech job density, median earnings and overall quality of life.
D.C. & Austin Top Southern Tech Hubs With Unmatched Job & Company Density
Washington, D.C. claimed the #1 ranking in the South for 2024 with a commanding 71 points, building on its top finish last year. Specifically, the nation’s capital led the region in key metrics, including tech establishment density (80 per 1,000 businesses); tech job density; and median tech salary, which increased to $122,000 annually to surpass last year’s second-place earnings ranking.
Known for its public-sector innovation, D.C.’s tech ecosystem thrives on business-to-government solutions, like cybersecurity, health tech and government services. In fact, roughly one-fifth of its tech workforce supports public-sector projects, further emphasizing the region’s unique specialization. Initially, proximity to policymakers attracts firms to D.C., but the metro’s robust infrastructure and talent pool encourage many to expand their operations, thereby reinforcing its position as the South’s leading tech hub.
At #2 with 65 points, the Austin, Texas, metro area continues to expand as a tech powerhouse by combining high-tech job and company density with the South’s third-highest growth in tech company density — a 25% increase between 2019 and 2023. Notably, by 2023, nearly 50 out of every 1,000 businesses in Austin were tech firms, driven by the presence of major players like Google, Apple, Dell, Tesla, Oracle and ABBYY. Moreover, the metro’s tech scene thrives on a diverse range of segments, including AI and green energy (bolstered by the University of Texas), as well as globally recognized events like SXSW. Thus, with tech companies accounting for more than half of all office leasing activity in 2024, Austin remains a magnet for innovation, talent and investment.
Next, the Raleigh, N.C., metro area climbed to third place, up from fourth last year, by offering a mix of high-tech job density and competitive median earnings. Here, the metro’s 78.4 tech jobs per 1,000 workers ranks as the fourth-highest in the region, while its position within the Research Triangle — anchored by North Carolina State University — drives collaboration across industries like life sciences, agritech and cleantech.
Not to be outdone, Dallas-Fort Worth moved up from sixth to fourth in this year’s rankings, driven by a 25.9% growth in tech company presence — the second-highest increase among the top 20 metros. Unlike other Southern tech hubs, Dallas has a fully diverse economy spanning energy, transportation and health care, which offers unique collaboration opportunities for tech firms. For instance, companies like iRely (which relocated to Irving, Texas) and Diversified (now in Plano, Texas) have joined homegrown successes, such as StackPath and Bestow. DFW has also managed to attract a steady stream of tech patents. Yet, despite these strengths, Dallas fell just short of the podium due to its slightly lower tech establishment density compared to Raleigh, in addition to a relatively higher cost of living.
Then, the Huntsville, Ala., metro area secured the final top-five spot, bolstered by its strong tech job and company density that’s driven by aerospace, defense and rocketry industries, alongside broader diversification. It’s worth noting here that several companies expanded or relocated to the area during the studied period: Dynetics, Torch Technologies, and Invariant Corporation contributed to a 50% increase in tech jobs between 2019 and 2023. On top of adding 4,779 positions throughout a two-year burst (2019 to 2021) and maintaining the lowest unemployment rate among the top 20 metros, Huntsville’s unique mix of high-tech innovation, government contracts and strong quality of life continues to make it one of the South’s most resilient tech hubs.
Meanwhile, in the latter half of the ranking, other metros showcased unique strengths. For instance, Houston (#9) led in tech patent output, while Virginia introduced two newcomers — Wilmington (#13), with the highest growth in tech company density, and Roanoke (#16), which saw a 200% increase in tech jobs in the last five years, including adding 2,380 tech positions in 2023 alone. Not far behind, Florida claimed five spots in the top 20 with metros like Tampa (#18) and Jacksonville (#19) near the top for tech establishment density growth and employment, respectively.
Interestingly, the population distribution within the top 20 highlights the growing prominence of smaller metros with eight having populations of less than 1 million, including four below 500,000. For small to medium-sized tech companies, these markets offer opportunities to build their brand quickly and tap into local talent pools not yet dominated by larger, household-name firms. It also means talent doesn’t have to leave smaller metros for bigger destinations, which creates a win-win for companies seeking skilled workers and professionals looking to build careers closer to home.
Click through the following tabs to see which Southern metros lead in each of the ranking’s key indicators.
Best Southern Metros in Each Metric - Click to Expand
Once again, Washington, D.C. claimed the top spot for tech company density with an unmatched 80.2 out of every 1,000 businesses in the metro operating in the tech industry. No other metro even came close to this level of concentration. However, despite its dominance in density, the region has faced stagnant growth in tech establishments — a trend that could challenge its long-term position at the top.
In second place, Austin, Texas, reported 48.6 tech businesses per 1,000, followed closely by Durham, N.C., at 48.4. Here, Durham’s proximity to Research Triangle Park gives it a strong foundation and, while it currently surpasses Raleigh, N.C. (sixth in this metric), Raleigh’s steady growth suggests it’s closing the gap.
Then, Baltimore and Huntsville, Ala., rounded out the top five with 43.7 and 42.1 tech companies per 1,000 businesses, respectively. Baltimore’s tech ecosystem remains driven by its medical and cybersecurity sectors, even as company growth has leveled off. For comparison, Huntsville, despite seeing a slight dip in density, retains its stronghold thanks to unique assets like NASA’s Marshall Space Flight Center and the Redstone Arsenal. These anchor institutions shield Huntsville’s tech scene from broader industry fluctuations, highlighting its enduring role as a leader in aerospace and defense technology.
Wilmington, N.C., recorded the highest percentage growth in tech establishments among Southern metros at nearly 30% throughout the last five years, moving up from #69 overall last year to #13 this year. Although the increase in the number of companies — from 136 to 174 — is modest, it nevertheless signals the coastal metro’s growing importance in fintech. In particular, local institutions like UNCW — along with spin-offs from Live Oak Bank, such as nCino and Apiture — have been key drivers of this growth, contributing to Wilmington’s growing reputation as a specialized tech hub.
Next, Dallas ranked second in tech density growth with a 25.8% increase. Notably, DFW had the largest increase in number of tech companies in the last five years after adding 1,450 new tech businesses between 2018 and 2022 (going from 5,604 to 7,054). Austin, Texas, followed in third place with a 24.9% growth rate, adding 620 new companies in the same period.
Florida also performed strongly with Tampa (15.5%) and Orlando (15.2%) rounding out the top five. Notably, Tampa has become a cybersecurity hotspot, led by firms like ReliaQuest, while programs such as Tampa Bay Wave — which recently surpassed $1 billion in capital funding — have helped foster startups. Further inland, Orlando has leveraged strengths in simulation technology and enjoys a robust talent pipeline from the University of Central Florida, cementing its rise as a tech hub.
Overall, 14 of the top 20 Southern metros reported growth in tech establishments in the last five years with Texas and Florida metros dominating the list. At the same time, traditionally strong markets like Washington, D.C.; Baltimore; and Huntsville, Ala., saw slight declines.
With 92 out of every 1,000 jobs in the tech sector, Washington, D.C. continues to dominate as the South’s top tech hub. This marks an increase from 88 per 1,000 last year as the metro benefits from its highly educated population: Roughly 55% of residents hold at least a bachelor’s degree. While many tech jobs here are tied to government and professional services, D.C. consistently produces more graduates than available roles, ensuring a surplus of talent.
Here again, Austin’s overall tech scene growth stood out, climbing to second place with nearly 80 tech jobs per 1,000 (up from 73.5).
Close behind, Huntsville, Ala. — which now sits in third at 79.6 per 1,000 — climbed the ranks for tech job density in this year’s ranking after placing fifth last year. Similarly, Raleigh, N.C., (with 78.4 tech jobs per 1,000) moved down to fourth place after ranking second last year.
Baltimore rounded out the top five with 64.8 tech jobs per 1,000, supported by a strong cybersecurity sector and stable employers in health care, defense and financial services.
At the same time, smaller metros — like Palm Bay, Fla. — also gained ground. Ranking ninth in tech density with 52.4 per 1,000 jobs, its rise to 15th overall highlights the growing potential of emerging Southern tech markets.
First and foremost, Roanoke, N.C.’s tech workforce grew by 208.8% between 2019 and 2023, despite a shrinking number of tech companies relative to other sectors. More precisely, jobs surged from 1,932 to nearly 6,000 as the metro area shifted away from its railroad roots (partly due to Norfolk Southern’s exit) and toward IT and biotech. Of course, ties with Virginia Tech University and other local universities have been crucial in driving this growth with local efforts focusing on retaining talent. Plus, it’s not only tech firms that are contributing to the increase in tech jobs. For example, in 2023, Wells Fargo announced an $87 million investment to modernize and expand its customer support center in Roanoke, which included creating several tech positions, such as software developers.
While Roanoke, Va., adapted to new sectors, Wilmington, N.C.’s tech growth has been more of a deepening of its existing strengths. The latter recorded a 106.5% rise in tech employment, propelled by its established banking sector, where fintech plays a major role. Specifically, companies like JPMorgan Chase and Bank of America, alongside local tech training initiatives, have driven Wilmington’s growth in software development and other tech areas.
Next, Jacksonville, Fla. — which saw a 54.6% rise in tech jobs — moved into the top 20 for the first time this year. Its growth reflects a broadening tech scene, whereas Huntsville, Ala., (which also recorded more than 50% growth) achieved this despite a decline in the number of tech firms. This suggests that companies outside of the tech sector may be absorbing tech talent.
In terms of sheer employee gain, Dallas led the way by adding 61,000 tech jobs to bring its total to 232,000 by 2023 — an increase of 35.5%. Even as tech layoffs swept the nation, Dallas and Houston, which added 30,500 tech jobs, demonstrated resilience. Likewise, all other metros in the top 20 saw tech job growth since 2019 with Charlottesville, Va., being the only exception.
Granted, cost of labor remains a critical factor for tech companies, often outweighing real estate expenses. So, for firms scouting new locations, it’s a balancing act to find top talent at affordable rates without compromising on quality. On the flip side, tech professionals often chase the highest earnings, uprooting for opportunities in regions that offer competitive pay.
As such, it’s no surprise that Washington, D.C. topped the South’s leaderboard for tech salaries. Here, software engineers and other tech workers take home a hefty $122,000 on average each year — a sharp jump from last year’s $112,000. With a pipeline of graduates stronger than most cities can dream of and a metro-wide appetite for tech talent, D.C. remains an unmatched magnet for skilled workers.
Nearby, Baltimore ranked second in the South for tech earnings with an average salary of $116,000 — up from $103,000 last year — and landing just behind D.C. Although the capital offers slightly higher pay, Baltimore’s lower cost of living makes it an appealing alternative for tech workers. Plus, the city’s tech salaries are bolstered by its proximity to federal agencies and a thriving cybersecurity sector, alongside stable employment opportunities in life sciences, health care and finance. Notably, Baltimore has seen sustained growth from employers like Johns Hopkins University and its Applied Physics Laboratory, ensuring a steady demand for highly skill tech talent.
Charlottesville, Va., rounded out the South’s top three by boasting average tech salaries of $113,000 — a massive leap from last year’s $91,000. Here again, the metro benefits from being close to D.C. and Baltimore, in addition to a strong engineering program that pumps out highly sought-after graduates. For now, Charlottesville’s potential as a tech hub hinges on attracting more companies to set up shop, but these rising salaries are a great start.
Further south, Austin, Texas, continues to make waves: Tech workers here earn around $111,400 — good enough for fourth place and a clear draw for companies looking to save on labor while tapping into the metro’s vibrant tech ecosystem. Moreover, Austin’s ability to offer high-caliber opportunities without sky-high costs keeps it in the spotlight.
Back east in North Carolina, the competition between Raleigh and Durham was close as ever. This year, Raleigh edged out its neighbor with tech salaries averaging $107,000 compared to Durham’s $103,000. That said, both metros keep climbing the rankings, thanks to strong universities and a steady stream of talent fueling their growing tech sectors.
At the other end of the ranking, Orlando, Fla., and Roanoke, Va., bring up the rear with average salaries of $87,751 and $86,174, respectively. But, don’t write them off just yet: Roanoke’s cost of living is just 92.4% of the national average, meaning that those lower salaries stretch further. And, for companies, these metros represent untapped opportunities to save money and invest in up-and-coming tech talent.
Altogether, 12 metros in the South now boast tech salaries above $100,000, which is a jump from just seven last year.
When looking at the growth of median tech earnings between 2019 and 2023, Fayetteville, Ark., led the South with an impressive 45.3% increase. With a median tech salary now around $101,000 and the lowest regional price parity in the top 20 (90.7% of the national average), Fayetteville combines strong earnings growth that continues to climb. As a matter of fact, last year, it ranked fourth with roughly 39% growth.
Close behind was Wilmington, N.C., where tech earnings rose 36% during the same period. Despite starting from a lower baseline, this metro is approaching the $100,000 benchmark — great news for tech talent drawn to its coastal lifestyle. What’s more, with living costs at 97% of the national average, the metro is proving its potential for both tech professionals and companies.
Next, Charlottesville, Va., which is known for its strong educational institutions, matched its rising tech scene with a 33% growth in median earnings to climb to $113,000. Notably, this growth aligns with its position as one of the South’s highest-paying metros for tech workers and a rising contender in the region’s tech ecosystem.
Other metros with significant tech salary growth included Orlando, Fla. (32.4%); Durham, N.C. (30.3%); and Austin, Texas (29.8%), all continuing their steady climb in pay. In particular, Austin remains a standout for its vibrant tech community and appeal to companies seeking top talent without the highest costs.
In total, 12 metros in the South saw median tech earnings surpass $100,000, up from just seven in last year’s study.
The second-largest metro by population in the South, Houston led the region with an impressive 8,691 tech patent grants in the last five years. Once synonymous with oil, Houston is increasingly making its mark as a cleantech hub — and patents reflect this shift. Yet, even as Houston remains the five-year leader, its 2023 patent output declined slightly, ceding the top spot that year to Austin.
To that end, Austin, Texas, has shown consistent growth in patent activity by securing more than 7,500 patents from 2020 to 2024 — second-highest in our ranking. Namely, in 2024 alone, Austin leads the South in patents granted, underscoring its status as a rising tech powerhouse.
Next, Washington, D.C. ranked fourth with 6,028 patents in the same period. More precisely, it stands out for its concentration of patent-awarded companies: The capital city topped the region with patents awarded to 1,135 distinct organizations — far surpassing Texas metros in diversity. However, this breadth translates to a smaller average of 6.5 patents per organization, as compared to Houston’s 18 patents per entity and Austin’s 13.7.
Not to be outdone, Dallas and Atlanta rounded out the top five in patent activity. Dallas secured patents for 825 companies, averaging 9.5 patents per organization, whereas Atlanta saw similar ratios with its own strong showing in total patent output and company engagement.
High salaries may draw initial attention, but they don’t tell the whole story of why tech professionals and companies select certain metros. Rather, quality of life remains a deciding factor, as well as somewhat of a “calling card” for the Southern region. As before, to measure this, our study incorporated a composite life-quality index by evaluating the cost of living, unemployment rates, and the share of adults with a bachelor’s degree or higher.
In this case, Charlottesville, Va., rose from third place last year to claim the top spot this year. With a population of 225,000, the metro pairs its academic strength — centered around the University of Virginia — with a below-national-average cost of living and a robust job market. At the same time, educational attainment climbed to 55.5% — the highest in the South and up from roughly 50% last year. Meanwhile, its unemployment rate remains low at 3.1%, and its cost of living improved compared to last year.
Huntsville, Ala., last year’s leader, is now second, but it remains a standout for stability and affordability. That’s because the metro boasts the South’s lowest unemployment rate at 2.7% and ranked third in cost of living. It’s worth noting here that its slight drop reflects Charlottesville’s progress, rather than any decline in Huntsville’s performance.
In third, Durham, N.C., continues to keep and attract talent with its educational ecosystem — 54.7% of adults hold a bachelor’s degree or higher — as well as its reasonable cost of living. Like Huntsville, its metrics held steady, despite being edged out by Charlottesville’s gains.
Lastly, Fayetteville, Ark., placed fourth after leading in affordability with costs 9.3% below the national average. Its 3% unemployment rate is another strength, although improving educational attainment (36.6%) will be helpful as the metro grows its tech presence.
