Raleigh, Durham, and Charlotte rank in the top 10 for best Southern metro cities for tech workers.
The tech industry is growing, and the South leads the dispersal of tech talent and companies beyond traditional hubs.
The ranking, from CommercialCafe, is based on tech company density, establishment growth, job density, and job growth — among other metrics. Rankings of Southern metro cities are below the Mason-Dixon Line and have populations above 200,000.
Raleigh places No. 3 after Austin, Texas and Washington, DC, with a noticeable increase in tech company growth and employment density. Durham places No. 7 after Atlanta, Georgia; and Charlotte ranks No. 9 after Baltimore, Maryland. While DC and Baltimore are below the Mason-Dixon Line, they are often categorized geographically and culturally as more Mid-Atlantic. If these two were not included, Raleigh would have placed second, Durham sixth, and Charlotte seventh.
North Carolina is positioned as a leading tech hub due to a unique combination of skilled workforce and a favorable business environment. Strong research universities, affordable living, diverse talent, and a competitive cost of doing business are strong motivators for tech companies and startups.
High-quality higher education creates an environment that is appealing to tech companies. The Raleigh-Durham region ranks among the top 10 markets in North Carolina for educational attainment, with 51% of adults aged 25 and older holding a bachelors degree of higher, according to Wake County Economic Development.
The UNC System’s research universities, including the University of North Carolina at Chapel Hill, Duke University, and North Carolina State University funnel a pipeline of highly skilled graduates into the tech industry, with the highest concentration of Tier 1 research universities in the US. More than 55% of software engineers in Raleigh-Durham are employed in the tech industry.
North Carolina’s low corporate income tax also boosts its competitive advantage. With a 2.25% corporate tax rate, the state is ranked No. 1 lowest state and local tax burden in the United States according to the North Carolina Department of Commerce.
North Carolina is also home to Research Triangle Park, which is the largest research park in the US spanning over 7,000 acres and housing over 300 companies.
NC Chamber president and CEO Gary Salamido told CJ that intentional policy in the state is part of what makes development so appealing.
“North Carolina’s rise as a top state for business — across technology and many other industries — didn’t happen by accident,” said Salamido. “It’s the result of decades of intentional policy advancements that have strengthened the state’s workforce, infrastructure, and competitive business climate. Communities across North Carolina are increasingly standing out as top destinations for companies, talent, and investment.”
Senior vice president of Research at the John Locke Foundation Brian Balfour told CJ the ranking comes as no surprise.
“The ranking reflects the pro-growth policies that North Carolina has implemented over the past dozen years,” said Balfour. “Our state has been ranked the best state for business three of the last four years, so this high ranking with regard to urban tech growth comes as no surprise. A falling tax burden combined with limited regulations makes North Carolina — and its population hubs — an attractive destination for investment and job creation.”
No. 7, Durham-Chapel Hill, reported the highest quality of life score with the second-highest share of bachelor’s degrees after Washington, DC. What makes the city attractive? A low cost of living and low rates of unemployment.
54.67% of residents in Durham hold at least a bachelor’s degree — a greater percentage than Raleigh at 52.5% and Austin at 52.3%. Unemployment in Durham is 3.1%, well below the national average.
Last year, Democrat Governor Josh Stein proclaimed February “Career and Technical Education Month.”
“We intend to make North Carolina the #1 state for apprenticeships in the nation. Investing in career and technical education is key to creating an economy in North Carolina that works for everyone,” said Stein in a statement. “Alongside our community colleges and corporate partners, we can shape the workforce of the future right here in North Carolina.”
Wilmington, NC, was also ranked in the top 20 best cities at No. 15, as the startup scene evolves.
