Homebuyers who are looking for cities that appreciate intellect in categories of science, technology, engineering, and mathematics need to look no further.
Real Estate Consulting (RCLCO), a real estate advisory firm, recently released its sixth annual STEM Job Grown Index, or STEMdex.
The index projects which metro areas will have the strongest outlook in STEM jobs. The results are good for Texas. Austin is first after ranking and third in the past two STEMdexes. Dallas ranks 11th.
Nearly 70 percent of the gross domestic product is influenced either directly or indirectly by STEM employment, Gregg Logan, RCLCO managing director, said in the study.
“Understanding where these jobs exist today and where they may concentrate tomorrow is essential to decision-makers and real estate investors alike,” Logan said.
In 2021, the GDP of Texas was $1.83 trillion, an increase from the previous year’s $1.73 trillion. The state ranks as the ninth-largest economy among the nations of the world.
In its analysis, RCLCO looked at demographic and economic factors prevalent in the 50 largest metro areas. About 70 percent of the nation’s total STEM employment can be found in these 50 markets, and the STEM positions pay an average of 69 percent more in salary than non-STEM positions within these markets.
The top five most heavily concentrated STEM markets — San Jose, Washington D.C., San Francisco, Austin, and Boston — all rank within the top-10 for projected future job growth.
Austin’s ranking makes sense because several Silicon Valley companies — Alphabet, Amazon, and Tesla — have relocated to the city.
According to analysis, attracting STEM jobs can serve as a fiscal boon to markets and bolster regional economies. A young and diverse workforce can energize a city and bring additional industries, tourism, and events.
