Atlanta has highest growth of tech graduates, report shows

The number of graduates earning technology-related degrees in Atlanta is growing faster than anywhere else in the U.S, a new report shows. 

“We’re in a transformation,” said Christian Devlin, senior vice president at commercial real estate firm CBRE, who is based in Atlanta. “We’re going from a high-growth tech market to a mature tech market.” 

Atlanta is ranked No. 8 in tech talent overall, according to CBRE’s Scoring Tech Talent report. CBRE uses 13 metrics related to job creation and innovation to score each market’s talent. Talent concentration is the biggest factor in the scores. The city has jumped two rankings since 2015. 

Major markets such as San Francisco, New York and Toronto dominate the tech talent growth because of their size, the report says. Seattle, Washington, D.C., Boston and Austin also rank above Atlanta.  

The report shows key strengths in Atlanta’s talent pool — steady growth, leading diversity and affordability. Those strengths will propel Atlanta through its period of transformation and may make it “one of the largest tech markets in the globe in the next five to 10 years,” Devlin said. 

Talent growth 

Between 2015-2019, Atlanta tech degree completions increased by 90.5%, the highest growth rate out of the top 50 tech hubs. 

That growth pushes Atlanta to No. 7 in number of tech degrees completed in 2019 at about 8,300. New York has the highest at 20,500. 

Devlin credits Georgia Tech with much of this growth. More than 4,000 undergraduate and graduate engineers graduated from Georgia Tech’s College of Engineering in 2020, according to the college. 

“Georgia Tech is the highest tech talent degree-producing university in North America,” Devlin said. 

The number of tech occupations and millennials in the city is increasing alongside the growth of tech graduates, according to the report.  

Between 2015-2020, tech occupations increased 15.2% to 143,780. The average wage for those occupations is $99,700. In the same period, the millennial population increased by 11.6%.  

CBRE considers millennials to be the generation driving the tech workforce because they grew up in a tech-enabled work environment. Millennial population increases have fueled the growth of tech markets across the country, according to the report.  

Atlanta's growth in tech occupations and millennials does not stand out among other markets but rather reflects a nationwide trend. Across the country, tech workers increased by 13% in the past five years, and Atlanta ranks in the middle of the pack for millennial population growth.  

Diversity 

Atlanta has the most diversity of the top 10 tech markets, according to the report. Overall, it’s ranked No. 4 in diversity, trailing Pittsburg, Charlotte and Nashville. Atlanta’s tech industry workforce is about 54% white, 19% Asian, 19% Black and 6% Hispanic, according to the report. 

San Francisco and Austin, which both rank higher than Atlanta for overall tech talent, have some of the lowest diversity rankings out of all the markets.  

Atlanta is at the forefront of the conversation as the tech industry confronts its diversity problem.  

Companies need to relocate to areas with diverse talent if they want to have more inclusive workforces, according to the Harvard Business Review. Atlanta has enjoyed the benefits of this trend over the past couple of years.  

Microsoft and Airbnb said diverse talent was a major factor in their decisions to open massive, local offices. Other companies often cite the city’s diversity as an advantage or an attraction. 

Affordability 

Atlanta remains an affordable market based on office and apartment rent, according to the report.  

Office rent per square foot in Atlanta is $29.54, compared to New York and San Francisco, which are $77.25 and $70.04, respectively.  

Atlanta’s average monthly apartment rent is $1,302. New York and San Francisco are once again the most expensive at $2,589 and $2,504, respectively.  

But rent prices have increased by 20% over the past five years in Atlanta, according to the report. That trend is permeating through the metro Atlanta real estate market, which is overall considered affordable but is seeing rapid change. 

Devlin doesn’t see the increases as a threat to Atlanta’s tech hub status.  

“It’s increasing, but it’s increasing from a very low base,” Devlin said. “We’re still a cost-compelling market to live and do business, especially given supply and quality of talent.”