Houston tops Texas as No. 1 city for growth in tech jobs, says new report

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Houston's tech job force growth leads Texas, says the new report. Image via Getty Images

While a certain city tends to draw all the buzz as the top Texas tech hub — especially since Elon Musk moved there — Houston has just emerged as No. 1 in the Lone Star State regarding tech jobs.

A new report from Dice, an online platform for tech professionals, shows Houston No. 5 among major U.S. cities for the growth of tech job postings from the first half of 2021 to the first half of 2022.

Houston, says the Dice report, registered an increase of 83 percent — making it tops in Texas.

Elsewhere in Texas, San Antonio No. 6 among major U.S. cities (and No. 2 in Texas) with an increase of 80 percent. Dallas appeared at No. 15 on the list, recording a 58 percent growth rate for tech job postings. Surprisingly, Austin failed to make the top 25 in this category.

Overall, Orlando, Florida topped the list, boasting a 111 percent growth rate for tech job postings.

This news is hardly surprising for Houston. In March, as CultureMap reported, Houston landed at No. 2 on Blind’s list of the best-paying Texas cities for software engineers. Here, the average annual salary is $111,625, and the average annual compensation is $137,987.

“Long before Austin became a magnet for jobs, there was Houston. Long a hub for the aerospace, defense, and energy industries, the aptly named Space City has been a go-to place for a job in tech,” Blind noted.

In October 2021, as CultureMap and sister site InnovationMap reported, employers in the Houston area posted openings for 14,714 tech jobs in the third quarter of 2021, which was up 44 percent from the same period last year. Through the first nine months of this 2021, Houston-area employers listed nearly 39,000 openings for tech positions.

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This article originally ran on CultureMap.
A new report ranks Texas as a top spot for tech workers. Photo via Getty Images

Texas ranks as top state for tech workers

techy texas

The Houston area can help wave Texas’ newly hoisted flag representing its status as the best state for tech workers.

A new study by IT service automation company SysAid analyzed several factors that affect a state’s desirability for tech workers, such as average internet speed and coverage, number of available tech jobs, and average industry salary compared with the state average. When all the data was tallied, Texas came out on top.

Here are a couple of data points that helped push Texas to the No. 1 position:

  • 31,110 tech jobs are available in the state, demonstrating significant demand for tech workers.
  • The typical tech salary is $103,370, more than double the state’s typical salary of $50,490.

As home to a bevy of tech companies like BMC Software, FlightAware, Hewlett Packard Enterprise, HighRadius, and NetIQ, the Houston area certainly contributes to the state’s No. 1 standing. According to a report released in 2021 by the Greater Houston Partnership and Houston Exponential, the more than 8,800 tech-related businesses in the region help generate $28.1 billion in local GDP.

Statewide, the tech sector pumps $142.8 billion into the economy, according to a recent report from CompTIA, a trade group for the tech industry.

Ranked behind Texas in the SysAid study are four states viewed as tech rivals:

  • California, No. 2.
  • New York, No. 3.
  • Virginia, No. 4.
  • Florida, No. 5.

“Jobs in tech and IT are becoming more in demand, with typically high salaries making the jobs desirable and free courses in coding making the industry more accessible. The data reveals that it is easier in some states to work in tech than others, with demand and salaries varying massively between states,” SysAid says. “Texas tops our list as the best state to work in tech, and it is fascinating to see that California, home to Silicon Valley, is not [at the] top.”

The CompTIA report shows nearly 791,000 people work in Texas’ tech sector. Texas ranks first among all the states for the number of tech jobs (10,851) added in 2021 and second for the size of its tech workforce (behind California). Texas also ranks second, behind Florida, for the number of tech businesses (1,807) launched in 2021.

CompTIA projects Texas will rank second this year, behind California, for the number of tech jobs added (21,303).

“Unlike other would-be innovation hubs, [Texas] has been quietly nurturing high-tech industry for decades. If Texas eventually rivals California, the consequences could be momentous, not just for industry, but for U.S. politics,” according to a Bloomberg opinion piece published in 2021.
Houston was recognized as a growing hub for tech jobs. Photo via VioletaStoimenova/Getty Images

Now hiring: Houston companies are looking to fill thousands of tech positions, according to a new report

by the numbers

Houston isn't stereotypically viewed as a tech hub like Silicon Valley or Austin. Yet the Houston metro area's tech employment base continues to grow at an impressive hub-type pace.

According to CompTIA, a trade group for the IT industry, employers in the Houston area posted openings for 14,714 tech jobs in the third quarter of 2021, up 44 percent from the same period last year. Through the first nine months of this year, Houston-area employers listed nearly 39,000 openings for tech positions.

CompTIA says Microsoft was the most active Houston-area employer last month in terms of postings for tech jobs — 130. It was followed by Deloitte (115) and JPMorgan Chase (52).

Among the most in-demand positions in the Houston area are software developer, software quality assurance analyst, computer user support specialist, computer systems analyst, and database administrator, CompTIA says.

A report released earlier this year by CompTIA ranks Houston as the country's No. 1 metro area for the share of tech workers employed at non-tech businesses — 62.2 percent (compared with 34.8 percent in the Austin metro area). According to the Greater Houston Partnership, this figure helps explain why Houston "isn't a more visible tech hub."

CompTIA tallied 243,908 tech workers in Houston last year, putting it in 11th place for total tech employment among U.S. metro areas. That compares with 426,286 in the San Francisco metro area (No. 4) and 373,695 in Dallas-Fort Worth (No. 11).

The ranks of tech workers in Houston are expanding in part because of an influx of tech talent. Among major metro areas, Houston claimed the No. 2 spot for the next gain of tech workers (10.4 percent compared with the previous 12-month span) moving from other regions from March 2019 to February 2020, according to LinkedIn data cited by the Axios news website. Only Miami ranked higher (15.4 percent).

While Houston may not necessarily be the next Silicon Valley, it "is winning the competition to establish tech hubs in Texas," MarketWatch declared in July.

The article cites the move of the headquarters for Hewlett Packard Enterprise (HPE) from Silicon Valley to Spring as an example of Houston's ascendance in the tech economy. The HPE relocation "offers a vivid snapshot of a new tech frontier," MarketWatch observes, where the energy sector, major local universities, the Texas Medical Center, Mayor Sylvester Turner's office, and the local tech ecosystem are collaborating on cloud computing and other innovations.

"I want the rest of the world to know how much Houston is changing," Amy Chronis, managing director of Deloitte's Houston office, told MarketWatch. "The wakeup call was Amazon looking at candidates for HQ2, and Houston not making the second cut. Not enough technological talent was their reason. It was incorrect, but it lit a fire here."
According to a report, Houston has grown its tech workforce more than other major metros over the past year. Joe Daniel Price/Getty Images

Houston ranks among fastest growing tech hubs amid the pandemic, report finds

growth in HOU

When Americans think of tech hubs, Silicon Valley or even Austin may initially come to mind. However, Houston appears to be making a play for tech-hub status.

Citing data from career platform LinkedIn, the Axios news website reports that Houston has seen a healthy influx of tech workers since the start of the pandemic. In fact, Houston ranks second among 14 major U.S. labor markets for the number of relocating software and IT workers between March 2020 and February 2021 compared with the same period a year earlier.

Miami grabs the No. 1 spot for the gain in software and IT workers (up 15.4 percent) between the two periods, with Houston in second place (10.4 percent) and Dallas-Fort Worth in third place (8.6 percent), according to the LinkedIn data.

"Young engineers and recent college graduates see Miami, Houston, and Philadelphia — not San Francisco, New York, or Seattle — as the hot new places to jumpstart a technology or creative economy career," Axios notes.

At the bottom of the barrel sits the San Francisco Bay Area, which suffered a loss of 34.8 percent when comparing the arrival and departure of software and IT workers. Interestingly, Austin experienced a loss of 8 percent in this category.

The shift from traditional tech hub to emerging tech hub is likely to continue as employers and employees alike further embrace remote work. A survey commissioned in April by the nonprofit One America Works found 47% of tech workers had moved during the pandemic. In addition, 3 in 10 tech workers anticipate living somewhere different than they did during the pandemic.

The CompTIA tech trade group says the Houston metro area is home to 243,908 tech workers. The Houston area's tech workforce grew 12.3 percent from 2010 to 2019, according to the group.

"Houston has been a center for world-changing innovations in energy, life sciences and aerospace for over a century. With science and engineering breakthroughs ingrained in the fabric of Houston's economy, the region has become a thriving hub of digital technology talent and companies thanks to our access to customers and expertise," says a report released in March by the Greater Houston Partnership.

One employer taking advantage of that talent is Bill.com. In 2019, the digital payments company opened a Houston outpost — the company's first office outside Silicon Valley.

"Though the city's technology industry is still developing, it offers a breath of fresh air compared to overcrowded late-stage tech markets like Austin and Denver. Ultimately, the breadth and depth of Houston's talent pool and the neighboring educational pipelines made it an ideal location for a second home," Vinay Pai, senior vice president of engineering at Palo Alto, California-based Bill.com and a Rice University graduate, wrote in April 2020 on LinkedIn.
Houston is a good place for creators of digital content, such as podcasters, bloggers, writers, and strategists. Photo by Laurence Dutton/Getty Images

Houston named national hot spot for this tech career, says report

DIGITAL DOMINANCE

The Greater Houston area ranks as one of the hot spots in the country for an in-demand area of tech expertise.

A new report from career website LinkedIn looks at an array of career categories exhibiting the highest year-over-year growth rates in hiring (based on the period from last April to October).

The report pinpoints Houston as one of the hottest U.S. markets for creators of digital content, such as podcasters, bloggers, writers, and strategists. For those looking to transition, the majority of these digital content creators have a bachelor of arts degree, while some 25 percent have a masters, the report notes. Top skills for these positions include editing, writing, public speaking.

Meanwhile, DFW is listed as a "top region" for UX specialists, including UX consultants, designers, and researchers along with the San Francisco Bay area and Greater Chicago area. (What, exactly, is UX? While the field and job can have many facets, one industry site puts it this succinctly: "UX design is the process of designing (digital or physical) products that are useful, easy to use, and delightful to interact with.")

The Austin area ranks as one of the hottest spots in the U.S. for artificial intelligence (AI). The report says jobs like artificial intelligence specialist, machine learning researcher, and machine learning engineer are in particularly high demand in the Austin area, as well as Denver and San Francisco Bay.

In 2019, the tech sector in Texas wielded an economic impact of $141.7 billion and employed more than 1 million people (including AI engineers, UX designers, and digital content creators), according to CompTIA, a trade association for the IT industry.

"Technology powered job growth and economic gains in the past decade in Texas and across the country while delivering countless benefits in how we work, communicate, create, and share," Todd Thibodeaux, president and CEO of CompTIA, said in a 2020 release.

U.S. News & World Report ranks the University of Texas at Austin among the country's top five schools for undergraduate students studying AI, an arm of computer science that simulates human intelligence.

Globally, AI is a fast-growing specialty among employers. A 2020 report from the World Economic Forum identified AI and machine learning positions as the No. 1 emerging category of jobs. Ninety-three percent of U.S. companies surveyed by the organization indicated they had adopted AI technology.

In 2019, job website Indeed reported that average salaries for the highest-paid AI jobs in the U.S. ranged from $109,314 to $142,859.

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This article originally ran on CultureMap.

Houston's tech workforce makes double the average salary — but when it comes to job growth, the city needs improvement, according to a new report. Photo via Pexels

Report: Here's how Houston ranks when it comes to tech salaries and job growth

by the numbers

It truly pays to work in the tech sector in the Houston metro area.

A report published January 11 by Austin-based tech company Spanning Cloud Apps LLC shows workers in the Houston area can more than double their pay when they hold down a tech job. In fact, Houston ranks fifth among the country's largest metro areas for the pay advantage in tech occupations versus all occupations.

According to the report, the median annual pay for a Houston-area tech job stood at $91,190 in 2019. By comparison, the median annual pay for all occupations sat at $40,570. That puts the area's median tech pay 124.8 percent higher than the median pay for all occupations, giving Houston a fifth-place ranking in that category.

At 124.8 percent, Houston is sandwiched between fourth-place Dallas-Fort Worth (127 percent) and sixth-place San Antonio (124.7 percent) in terms of the pay premium offered by tech jobs. At No. 27 is Austin, with a 106.1 percent pay premium for tech jobs.

As for median tech pay, DFW ($91,760) claims the No. 12 spot among large metro areas. Meanwhile, Houston is in 15th place ($91,190), Austin is in 24th place ($85,640), and San Antonio is in 30th place ($81,870).

The report identifies 84,040 tech workers in the Houston area. In that regard, Houston ranks 13th among large metro areas, with DFW at No. 5 (158,490), Austin at No. 18 (66,800), and San Antonio at No. 35 (28,200).

While Houston earns a high ranking in the Spanning report for the pay gap between tech jobs and all jobs, it's toward the bottom of the pile when it comes to the share of tech jobs, the report indicates. Among large metro areas, Houston ranks 41st for the share of computer and math occupations in the workforce, 2.8 percent.

San Jose, California, takes the No. 1 spot in that category, with 12.7 percent of employees working in computer and math occupations. Austin ranks sixth (6.2 percent), DFW holds down the No. 13 spot (4.3 percent), and San Antonio comes in at No. 42 (2.7 percent).

Spanning based its report on data collected by the U.S. Bureau of Labor Statistics.

In February 2020, the Greater Houston Partnership indicated the region was home to about 150,000 tech workers, far above the number tallied in the Spanning report. The partnership says the region boasts the 12th largest tech sector in the U.S., generating an annual economic impact of $28.1 billion. Among the country's 20 largest metro areas, Houston ranks first for the share of tech workers at non-tech employers.

From August to September, Houston saw an 11 percent rise in postings for tech jobs, according to a third-quarter report from tech career hub Dice. That was one of the highest growth rates among the country's largest metro areas.

"As the home of NASA's human space program and headquarters to the global energy industry, Houston has long been known for its engineering prowess," the Greater Houston Partnership says. "Although most of Houston's technology talent is embedded in some of the area's largest industries such as energy and health care, subsectors such as software development, programming, and database management are also growing."

In the tech sector, Houston is bound to benefit from Hewlett Packard Enterprise Co. (HPE) shifting its headquarters from Silicon Valley to its campus under construction in Spring. The company praises Houston as "an attractive market for us to recruit and retain talent, and a great place to do business."

HPE already employs about 2,600 people in the Houston area. The move of its headquarters to Spring could mean the addition of hundreds of local jobs in the coming years.

"HPE's headquarters relocation is a signature moment for Houston, accelerating the momentum that has been building for the last few years as we position Houston as a leading digital tech hub," Bob Harvey, president and CEO of the Greater Houston Partnership, said in December.
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Houston startups raise funding, secure partnerships across space, health, and sports tech

short stories

It's been a new month and a few Houston startup wrapped up November with news you may have missed.

In this roundup of short stories within Houston startups and tech, three Houston startups across health care, space, and sports tech have some news they announced recently.

Houston digital health company launches new collaboration

Koda Health has a new partner. Image via kodahealthcare.com

Houston-based Koda Health announced a new partnership with data analytics company, CareJourney.

"This collaboration will aim to develop benchmarking data for advance care planning and end-of-life metrics," the company wrote on LinkedIn. "Koda will provide clinical and practice-based expertise to guide the construction of toolkits, dashboards, and benchmarks that improve ACP programs and end-of-life outcomes."

Koda Health announced the partnership in November..

“Beyond the checkbox of a billing code or completed advance directive, it’s important to build and measure a process that promotes thoughtful planning among patients, their care team, and their loved ones,” says Desh Mohan, MD, Koda's chief medical officer, in the post.

CareJourney was founded in 2014 in Arlington, Virginia.

"I'm hopeful next-generation quality measures will honor the patient’s voice in defining what it means to deliver high quality care, and our commitment is to measure progress on that important endeavor," noted Aneesh Chopra, CareJourney's co-founder and president.

Sports tech startup raises $500,000 pre-seed investment

BeONE Sports has created a technology to enhance athletic training. Photo via beonesports.com

Houston-founded BeONE Sports, an athlete training technology company, announced last month that it closed an oversubscribed round of pre-seed funding. The company announced the raise on its social media pages that the round included $500,000 invested.

Earlier in November, BeONE Sports completed its participation in CodeLaunch DFW 2022. The company was one of six finalists in the program, which concluded with a pitch event on November 16.

Space tech company snags government contracts

Graphic via cognitive space.com

The U.S. Air Force has extended Houston-based Cognitive Space’s contract under a new TACFI, Tactical Funding Increase, award. According to the release, the contract "builds on Cognitive Space’s work to develop a tailored version of CNTIENT for AFRL to achieve ultimate responsiveness and optimized dynamic satellite scheduling via a cloud-based API.

The $1.2 million award follows a $1.5 million U.S. Air Force Small Business Innovation Research award that the company won in 2020 to integrate CNTIENT with commercial ground station providers in support of AFRL’s Hybrid Architecture Demonstration program.

“The TACFI award allows Cognitive Space to continue supporting AFRL’s vitally important HAD program to help deliver commercial space data to the warfighter,” says Guy de Carufel, the company’s founder and CEO, in the releasee. “CNTIENT’s tailored analytics platform will enable HAD and the GLUE platform to integrate modern statistical approaches to optimize mission planning, data collection, and latency estimation.”

Houston airport powers up new gaming lounge for bored and weary travelers

game on and wheels down

Local gamers now have a new option to while away those flight delays and passenger pickup waits at Hobby Airport.

Houston's William P. Hobby Airport is now one the first airports in the country to offer what's dubbed as the "ultimate gaming experience for travelers." The airport has launched a premium video game lounge inside the international terminal called Gameway.

That means weary, bored, or early travelers can chill in the lounge and plug into15 top-of-the-line, luxury gaming stations: six Xbox stations, five Playstation stations, four PC stations, all with the newest games on each platform. Aficionados will surely appreciate the Razer's Iskur Gaming Chairs and Kraken Headsets, along with dedicated high speed internet at each PC station.

The Gameway lounge pays homage to gaming characters, with wall accents that hark to motherboard circuits Crucial for any real gamer: plenty of sweet and savory snacks are available for purchase to fuel up on those fantasy, battle, or sporting endeavors. As for the gaming console stations, players can expect high definition screens, comfortable seating, and plenty of space for belongings.

Make video games a part of your pre-flight ritual. Photo courtesy of Gameway

This gaming addition comes just in time for the holiday rush, when travelers can expect long lines, delays, and are already planning for extended time for trips. As CultureMap previously reported, Hobby will see a big boost in travelers this season — the largest since 2019. Now, those on a long journey can plug in, decompress, and venture on virtual journeys of their own.

Texan travelers may be familiar with Gameway; the company opened its first two locations at Dallas Fort-Worth Airport. The buzzy lounge an industry wave of acclaim: Gameway was awarded Best Traveler Amenity in 2019 at the ACI-NA Awards and in 2020, voted “Most Innovative Customer Experience” at the Airport Experience Traveler Awards, per press materials.

Two new locations followed in 2021: LAX Terminal 6 and Charlotte Douglas International Airport. The first of Gameway's Ultra lounge brand opened in September at Delta's Terminal 3 in LAX.

Gaming culture is a way of life in the Bayou City , which hosts Comicpalooza, the largest pop culture festival in Texas, and is home to several e-sports teams, including the pro esports squad, the Houston Outlaws.

A delayed flight never seemed so ideal for gamers flying out of Hobby. Photo courtesy of Gameway

“Gameway is the real reason to get to the airport early,” said Co-Founder Jordan Walbridge in a statement. “Our mission is to upgrade the typical wait-at-the-gate experience with a new stimulating, entertaining option for travelers of all ages.”

Here's guessing Hobby might just see an increase in missed or late flight arrivals — as travelers simply must beat those big bosses, solve puzzles, or win sports matches in the lounge.

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This article originally ran on CultureMap.

5 most popular innovation stories in Houston last week

what's trending

Editor's note: Another week has come and gone, and it's time to round up the top headlines from the past few days. Trending Houston tech and startup news on InnovationMap included a roundup of December business events, an interview with the new leader of TMC's accelerator, and more.


3 Houston innovators to know this week

This week's roundup of Houston innovators includes Zimri Hinshaw of BUCHA BIO, Kelly Klein of Easter Seals of Greater Houston, ad John Mooz of Hines. Photos courtesy

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from esports to biomaterials — recently making headlines in Houston innovation. Continue reading.

Innovative health tech startups en route to Houston, says new accelerator leader

Devin Dunn leads TMC's HealthTech Accelerator, which is getting ready to welcome its next cohort in January. Photo via TMC.edu

For almost a decade the Texas Medical Center has been cultivating health tech innovation by accelerating life science startups. As it has evolved to meet the needs of both its early-stage companies and its member institutions, TMC Innovation has re-evaluated existing programming, introduced new initiatives, and on boarded leaders to represent the organization's mission — the latest of whom, is Devin Dunn.

Earlier this year, Dunn joined TMC Innovation as head of TMC's HealthTech Accelerator, a career move that represented Dunn's move to a different side of the startup world. As an early employee at London-based Huma, Dunn was instrumental in growing the health tech company from its early stages to international market expansion.

"I really like working with the dreamers and helping them work backwards to (figure out) what are the milestones we can work toward to make the grand vision come true in the future," Dunn says on this week's episode of the Houston Innovators Podcast. "The opportunity to work with different founders on that same journey that we had been through was really appealing." Continue reading.

Houston energy storage startup secures $10M in federal funding

Houston-based Quidnet Energy has secured funding from a Department of Energy program. Image via quidnetenergy.com

A Houston-based company that's got a solution to renewable energy storage has just secured funding from a federal entity.

The U.S. Department of Energy Advanced Research Projects Agency-Energy, or ARPA-E, is granting Quidnet Energy $10 million in funding, the Houston company announced this week. The funding is a part of the ARPA-E Seeding Critical Advances for Leading Energy technologies with Untapped Potential, the SCALEUP program. This initiative is aimed at providing funding to previous ARPA-E teams "that have been determined to be feasible for widespread deployment and commercialization domestically," per a news release.

“We’re honored that ARPA-E has selected Quidnet Energy as an awardee of the SCALEUP program,” says Joe Zhou, CEO of Quidnet Energy, in the release. Continue reading.

7+ can't-miss Houston business and innovation events for December

Here's your one-stop shop for innovation events in Houston for December. Photo via Getty Images

Houstonians have yet another good batch of in-person and online innovation events, and you and your tech network need to know about them.

Here's a roundup of virtual events not to miss this December — like pitch nights, workshops, conventions, and more. Continue reading.

Houston low-carbon fuel company scores United investment, plans to IPO via spac

Just after announcing an investment from United, NEXT Renewable Fuels Inc. scored a SPAC-based IPO. Photo via nextrenewables.com

It’s been a momentous month for Houston-based NEXT Renewable Fuels Inc.

On November 15, United Airlines Ventures announced an investment of up to $37.5 million in the next-generation, low-carbon fuel producing company.

Just a week later, the company revealed it’s going public through a SPAC merger with Industrial Tech Acquisitions II Inc. The deal, expected to close in the second quarter of 2023, assigns a $666 million equity value to NEXT. The publicly traded company will be named NXTCLEAN Fuels Inc.

NEXT, founded in 2016, produces low-carbon fuels from organic feedstock. The company plans to open a biofuel refinery in Port Westward, Oregon, that’s set to start production in 2026. The refinery could produce up to 50,000 barrels per day of sustainable aviation fuel, renewable diesel, and other renewable fuels. Continue reading.

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