A new report showed the share of tech jobs in what are known as "superstar" cities such as the Bay Area, Boston, Los Angeles and New York has dipped in recent years, while it has been growing in other cities including Salt Lake City.
According to a recent study from the University of Utah, more than 60% of out-of-state movers have settled in Salt Lake and Utah counties. The state's positive net migration is partially attributed to favorable economic conditions.
Steve Case, chairman and CEO of the venture capital firm Revolution LLC, has been a proponent for investment outside coastal hubs for years. He said it is important to recognize the impact the trend is having, especially post-pandemic.
"Obviously the pandemic was tragic in many respects, I don't want to make light of that," Case noted. "But it did shift how people think about work and life and shift the ability to have more flexible work, more remote work, more hybrid work has been helpful to a lot of these cities."
Case observed many highly educated and skilled professionals in the tech sector who can telework have taken advantage of new possibilities. The commercial real estate and investment firm CBRE said Salt Lake City had more than 22% growth in tech jobs in 2021 and 2022, making it one of the leading tech markets in the U.S.
While seeing more people moving to states such as Utah can be interpreted as a good thing on an economic level, Case cautioned it does not come without its own unique set of challenges, like putting pressure on housing costs and increasing demand on public services.
"But you need that dynamism in order to be successful as a city," Case contended. "Trying to manage that in a smart way and be thoughtful if you are successful enough to have some big companies launch and scale there or get other companies to move there."
Case added how local governments in Utah and across the country respond to businesses and more in-migration over the years will have a direct effect on competitiveness and well-being, which is why he encouraged city planners to develop a strategy to harness local talent, capital and a better culture for entrepreneurs.
