Chicago's tech scene may be expanding, but it still has a ways to go to be considered top-tier in the country.
Chicago didn't crack the top 20 in a new report on tech workforce demographics in the U.S. and Canada.
The report by real estate firm CBRE offers an updated overview of Chicago's tech market, and how it compares to industry-leading hubs such as San Francisco, Seattle and New York City.
CBRE ranked Chicago No. 23 among the top 50 markets and No. 17 in the United States for the overall strength of its tech talent, based on 13 metrics measuring depth, vitality and attractiveness to companies.
Chicago dropped from No. 20 in 2022.
Some other highlights from the report:
- Chicago ranked No. 9 for overall tech talent with a workforce of more than 166,000 people.
- Local tech workers earn an average salary of $103,000, up from 13.6% from five years ago. The highest-paying role is computer and IT systems manager, with an average salary of $165,000.
Thirty-seven markets had more tech degree graduates than new tech talent jobs, including Chicago. From 2021 to 2022, there were nearly 42,800 tech degrees handed out compared to the 17,630 tech jobs that were added in the city.
Making Chicago's tech scene more diverse has become a priority for several community organizations in recent years, but the report showed that progress has been slow. However, the report indicates that remote work and workforce analytics have created opportunities to accelerate the process. A total of 20% of tech job postings in May 2023 offered remote work arrangements.
About 7% of Chicago's tech workforce, including tech workers at both tech and non-tech companies, is Black. Meanwhile, about 25% of tech workers identify as Asian and another 11% as Hispanic. The report also found that 25% of tech workers are women.
Nationally, around 20% of tech workers are Asian, just under 10% are Hispanic and just under 8% are Black.
While it's getting more expensive to live in Chicago, the market ranked No. 14 in 2022 operating costs, with CBRE's data finding local companies spend on average $51.4 million a year, including $49 million on talent and $2 million on office rent. That's based on a typical 500-person tech company with 60,000 square feet of office space. Canada had all the lowest-cost markets.
The report showed Chicago office rent rates increased 22.7% from Q1 2020 to Q4 2022, when annual gross direct asking rent per square foot was $35.04. Comparatively, the Bay Area was $69.79 and Seattle was $44.89 per square foot. While Denver (No. 10) was $32.06.
Brent Wistrom of the Austin Business Journal contributed to this report.
