Southern Innovation: The South’s Best Metros for Tech Workers in 2026
As technology becomes more embedded across all industries, tech companies and workers are spreading beyond traditional hubs. Notably, the South has been a leader of this dispersal: Tech talent and companies have been relocating across the region for reasons that include lifestyle choices, lower costs and career opportunities. But, they’re not settling randomly. Educational institutions, established industry specializations and local government policies all determine where tech grows. Accordingly, metros that combine strong universities, business-friendly initiatives, and supportive ecosystems for new companies tend to attract the most tech talent and startups.
So, to identify which Southern metros are winning this competition for tech talent and investment, we analyzed metro areas with populations above 200,000 and awarded them points based on nine metrics, including tech establishment density and growth; tech job prevalence and growth; median earnings for tech workers; tech patents; and quality of life, among others.
Washington, D.C. & Austin, Texas, Hold Onto Top Spots as South’s Best Tech Metros
For the third year in a row, Washington, D.C. held off the competition in our 2026 ranking of the best tech metros in the U.S. South by claiming #1 with 71 points. Just like the last ranking, the metro scored maximum points for its tech establishment density, tech employment density and median tech earnings. In addition, D.C. boasted the second-highest share of college-educated residents at 55.5%, maintaining its deep talent pool.
Unlike other tech metros driven by venture capital, D.C.’s tech scene runs on federal contracts, which creates a more consistent rhythm, especially as venture capital has remained sidelined amid economic uncertainty. That helps explain why the metro’s tech company and employment density have remained so stable.
Coming in second with 67.2 points, Austin, Texas, held its spot as one of the South’s most innovative metros. In fact, the Texas capital ranked near the top in several categories, including runner-up in tech company density at 50 per 1,000 companies and second in patent output with 8,259 grants from 598 organizations. From AI and RISC-V chip architecture to semiconductors and software, Austin’s innovation spans multiple tech sectors. At the same time, high-profile relocations have amplified the metro’s already strong startup culture, further drawing in more entrepreneurs and specialized talent.
Next, Raleigh, N.C., held third place with gains across several metrics since the last ranking. Specifically, the metro posted growth in tech companies and moved up in tech employment density, while also placing third for tech company density and fourth for median tech earnings. Raleigh also recorded the third-lowest unemployment rate on the list.
At #4, Dallas-Fort Worth stands out for its momentum: Tech companies increased their share of all DFW businesses by 34.7% throughout the last five years for third-highest on the list. In this case, corporate relocations and tech expansion in the northern suburbs have been driving the growth. Dallas also had the second-highest number of companies contributing to the metro’s patent output.
Then, in fifth place, Huntsville, Ala., held its spot with strong fundamentals. The metro recorded the second-highest density of tech companies and the highest quality-of-life score on the list, including the lowest unemployment rate. But, Huntsville has seen a continued slide in its share of tech companies, and tech earnings growth has slowed. That said, tech employment keeps growing, meaning more tech jobs from fewer tech companies.
Beyond the top five, other metros made significant impressions. Namely, Durham-Chapel Hill, N.C., finished in seventh place with the highest quality-of-life index score, including the second-highest share of bachelor’s degree-holders after D.C., combined with attractive living costs and low unemployment. Not to be outdone, Houston finished 10th and, as the second-largest metro on the list by population, recorded the most tech patents during the last five years at 9,181.
Best Southern Performers in Each Metric
Based on the latest U.S. Census data, 80.3 of every 1,000 companies in the Washington D.C. metro operate in tech, giving the South’s highest concentration of tech companies.
Up next, Austin, Texas, had 50 out of 1,000 companies in tech. Aside from the distance in density of tech firms between Austin and leader Washington D.C., the Texas state capital differs from Washington, D.C. in that Austin’s last five years have seen growth in the density of tech companies, whereas the D.C. metro has remained largely flat density-wise. In third place, Durham, N.C., almost tied Austin with 48.8 tech companies out of every 1,000.
Not far behind, a third tier for tech company density begins with Baltimore at 43.7 tech companies per 1,000 and includes Raleigh, N.C. (42.2); Huntsville, Ala. (41); and Dallas (40.4). Of course, each of these metros is located in different parts of the South, and each offers its own tech scene identity — be it specialized in Huntsville or diverse and broad in Dallas. They also showed contrasting growth trajectories in the last five years: Baltimore saw flat growth, like its neighboring metro Washington, D.C. Conversely, Raleigh and Dallas saw double-digit percentage growth, whereas Huntsville saw a decline with tech density down 8.7%.
Two mid-sized metros in the 400,000 to 500,000 population range led the South in tech company growth from 2019 to 2023. First, Florida’s Naples-Marco Island topped the list with a 47.1-percentage-point jump after growing from 140 to 206 tech firms. Here, many firms center around medtech, anchored by Arthrex, a major orthopedic medical device producer. Similarly, supporting companies — like Catalyst OrthoScience, which develops shoulder replacement systems — have followed, creating a medtech cluster in a metro otherwise dominated by tourism and health care services.
Further north, Wilmington, N.C., came in second with a 34.9% increase, expanding from 129 to 174 companies. Wilmington’s banking history has made it fertile ground for fintech with companies like nCino and Live Oak Bank, proving that financial technology can thrive outside of traditional hubs.
In third place, Dallas-Fort Worth (the South’s largest metro by population) recorded 34.7% tech company growth in the last five years. Notably, DFW had the largest increase in the actual number of tech companies after adding 5,686 firms to reach 7,661. The closest comparable growth was in nearby Austin, which added less than half of Dallas’ figure with 724 new companies. That translates to the fifth-highest percentage increase on the list at 28%.
Otherwise, metros from Florida, North Carolina and Texas occupied all of the top seven spots in tech company growth. For instance, College Station, Texas, placed between Dallas and Austin. Another newcomer to the top 20, it recorded a 33.7% increase in tech companies. Then, after Austin, came North Carolina’s Charlotte (+24%) and Raleigh (+23.6%).
As a whole, 14 of the study’s top 20 metros posted positive growth in tech companies from 2019 to 2023. Among those, Florida, Texas and North Carolina had four entries each.
Washington, D.C. still leads tech job concentration comfortably at 92.9 tech jobs per 1,000, which is practically unchanged from the last ranking when it was 92.
The battle for second place was close, though: Huntsville, Ala., edged into second with 83.8 tech jobs per 1,000, moving up from third in the previous ranking and barely ahead of Raleigh, N.C., (82.7) and Austin, Texas (82.5). Raleigh also climbed one spot to third, while Austin slipped from second to fourth. Additionally, all three metros increased their actual tech job density from the previous ranking with Huntsville and Raleigh showing especially strong gains that were practically identical: Huntsville added 4.2 new tech jobs per 1,000 and Raleigh added 4.3.
Admittedly, an increase in the concentration of tech jobs can also mean job losses in other areas. However, unemployment rates in Huntsville and Raleigh are down from the last ranking, indicating that tech jobs have taken an increasing share of all jobs. Furthermore, for Huntsville, this increase comes even as the share of tech companies among all Huntsville businesses has fallen slightly. In many ways, it speaks to how tech jobs are becoming more prevalent across other sectors. Or, put simply, more tech jobs exist in non-tech companies.
When looking at the percentage growth of tech workers in each metro between 2019 and 2024, Roanoke, Va., led the list at 175.9%. That’s quite the increase, but it comes from a smaller starting point. In fact, Roanoke started out with the smallest pool of tech workers at the start of 2019 among the top 20 metros, adding roughly 3,398 to hit 5,330 in 2024. And, given that the metro had minimal tech company growth in the same window, we can assume that most of the new tech jobs are the product of expansions in fields like biotech. In particular, Carilion Clinic, in conjunction with Virginia Tech, is making the case for Roanoke as a growing biotech hub.
In second and third for job growth was Wilmington, N.C., with 97.6% and College Station, Texas, with 92.5% growth in tech roles, respectively. In both cases, the increase in hiring came as tech companies also increased. At the same time, both metros saw an increase of roughly 35% in tech companies as a share of all new companies.
As previously mentioned, Wilmington has developed a fintech reputation, and the coastal metro has seen its tech talent begin careers in local success stories before starting their own firms. Roughly 3,700 new tech jobs were created in that period.
“Our ecosystem is attracting new entrepreneurs,” said Jim Roberts of the Network for Entrepreneurs in Wilmington,according to Hypepotamus. “We are focusing on the success of our entrepreneurs helping attract new companies, instead of actively recruiting companies.”
Meanwhile, in College Station, the presence of Texas A&M means a pipeline of talent for local biotech firms. Here, FUJIFILM Diosynth Biotechnologies has been the major driver, expanding operations and hiring for intensive tech roles in automation and data analytics. That expansion is part of a broader push to build a biocorridor in the region with College Station positioning itself as a biotech manufacturing and research hub. As a result, roughly 3,000 tech roles were created.
Predictably, the largest metros dominated in absolute job gains: Dallas grew from more than 171,100 tech workers in 2019 to 260,790 by 2024. Consequently, that single metro added more tech jobs than Atlanta and Houston combined.
Moreover, all 20 metros in the Southern tech rankings saw positive employment growth. Even the slowest-growing (Washington D.C.) still posted a 13.9% gain.
The nation’s capital, Washington D.C., pulled off its third top result here with the highest median tech earnings in the South at $124,590.
Perhaps surprisingly, in second place was the Crestview, Fla., metro where median tech earnings were just over $115,100. Notably, tech worker earning power has shot up in the Okaloosa County metro area, increasing by 35.4% in the last five years. That said, the reason the mid-sized metro (310,000 population) can offer such competitive pay comes down to defense and aerospace demand. More precisely, Eglin Air Force Base — the largest U.S. Air Force installation — and Hurlburt Field drive high-paid jobs for specialized tech roles.
Not to be outdone for tech worker salaries were three much larger metros: Baltimore ($115,000); Raleigh, N.C. ($114,790); and Austin, Texas, ($114,263) were followed by the Naples-Marco Island metro in Florida with tech earnings of $113,710.
But, when looking at purchasing power among these high-paying metros, three stand out where the cost of living falls below the national average: Austin, Texas; Crestview, Fla.; and Raleigh, N.C. That means that tech salaries go further in these metros than in places like D.C. or Naples.
Tech salary growth in the last five years in the South belonged to Florida. Specifically, the Crestview-Fort Walton Beach-Destin metro led those on the list with earnings for tech workers up 35.4% from 2019 to 2024. Orlando and Tampa were second and third with gains of 34.9% and 33.3%, respectively.
In Crestview, tech workers benefited from increased defense spending. More than one-fifth of the state’s defense dollars go to northwest Florida, and the Okaloosa and Walton counties that make up the metro. For comparison, in Orlando and Tampa, median earnings in tech roles started from lower baselines, so dollar increases translated to larger percentage gains: Median tech earnings in Tampa are $96,280 versus $88,490 in Orlando, both of which are still below the top-20 metro average of roughly $100,000.
Elsewhere, Charlotte, N.C., and Atlanta also saw considerable salary growth, tied at 27.9% between 2019 and 2024. They were followed by two from Texas: Houston at 26.9% and Austin at 26.5%.
Across the top 20 overall, 18 of the 20 metros saw positive tech earnings growth during the period. Just College Station, Texas, and Fayetteville, Ark., recorded decreases, although both metros have the lowest regional price parity on the list, meaning tech workers here still get more purchasing power from their salaries.
Although Houston doesn’t lead in tech firm density or tech employment, the metro is the South’s most productive in terms of tech patent output with no fewer than 9,181 patent grants between 2020 and 2024. As the “energy capital of the world,” Houston has a huge base of companies and research institutions working on physics-based technologies; more R&D labs; more engineers; and more invention.
In Texas, Austin’s patent output is also impressive at roughly 8,260 patents during the same period, outpacing Houston in both 2024 and 2024. But, Austin is more concentrated, focused squarely on traditional tech, like software, hardware and semiconductors. Here, companies like Samsung Austin Semiconductor generate high patent volumes, as does the University of Texas, which is regularly ranked as a top-three education institution in the nation for patent output and innovation. Understandably, other metros with a high volume of patentable inventions were some of the largest metros in the South by population — Dallas (6,850 tech patents); Washington, D.C. (6,256); and Atlanta (5,797).
One fact worth noting: The patents in Washington, D.C. were awarded to 918 different companies and organizations at an average of 6.8 patents per organization. Dallas was similar with 717 companies averaging 9.55 patents each. Staying in Texas, Austin and Houston had fewer companies — 598 in Austin and 557 in Houston — produce their larger patent hauls, making for ratios of 13.8 and 16.5 patents per organization, respectively. In other words, Houston and Austin’s patents came from a smaller number of high-output companies, whereas Washington, D.C.’s innovation was more spread out.
Otherwise, the most efficient metro for patents per company was the Fayetteville-Springdale-Rogers, Ark., metro, which produced 1,207 patents in five years from just 14 organizations.
The Durham-Chapel Hill, N.C., metro area topped the composite quality-of-life metrics, which factored in the percentage of a metro’s adults with higher education, as well as the metro-wide unemployment rate and regional price parity. For Durham, educational attainment was its strongest area with 54.67% of residents holding at least a bachelor’s degree, second only to Washington, D.C. and ahead of neighboring Raleigh, N.C., and Austin, Texas. Living costs in Durham also manage to stay below the national average (3.4% below), while unemployment hovers around 3.4%. All of these make for a metro with strong indicators for living quality.
Raleigh, N.C., was third, thus showing both of the North Carolina Research Triangle metros as strong choices for living quality. Raleigh was also third for most educated and tied for third-lowest unemployment rate. Plus, it still remains below the national price parity average for daily expenses on goods and services.
Lastly, a noteworthy mention to College Station, Texas, was fourth-best in the quality-of-life index. It also has the most affordable living prices — 9.3% lower than the national average — which provides some context to the metro having the lowest median tech earnings on the list.
Methodology
Matthew Preston
Content Writer, CRE News & Market Analysis
Matthew has covered commercial real estate for CommercialCafe since 2022. He focuses on the office and industrial sectors, reporting on leasing, development, and investment across national markets and individual submarkets. His work draws on data and original research. He also writes about demographic shifts and urban innovation in U.S. cities. The New York Times, The Real Deal, Bisnow, The Business Journals, and Yahoo Finance have cited his reporting.
