New York City has pulled ahead of San Francisco in total tech workers for the first time on record. A new report from investment firm CBRE shows the shift, and it lines up with warnings some tech executives made when they predicted an exodus from California over the state’s progressive policies.
New York now counts 394,300 tech workers, up by 30,640 since 2022. San Francisco, meanwhile, dropped to 375,730 workers, a decline of 23,900 over the same three-year stretch.
San Francisco Still Leads on Talent Quality
San Francisco hasn’t lost its crown entirely. CBRE’s broader “Tech Talent Scorecard Ranking” still places the Bay Area first overall, a score built from factors like talent quality, the number of recent graduates entering the industry, and average salaries.
New York’s growth still stands out. The city posted the third-largest gain in tech workers nationally, behind only Toronto and the Dallas-Fort Worth area. Much of that momentum traces back to a post-pandemic surge in tech activity, helped along by the city’s deep ties to finance and other established industries.
Why San Francisco’s Numbers Slipped
The AI boom might suggest San Francisco should be gaining workers, not losing them. The city is still attracting talent in that emerging field, but not enough to offset a broader wave of departures. That wave appears tied less to politics and more to layoffs that followed the pandemic-era hiring surge.
Layoffs.fyi has tracked more than 833,000 tech job cuts since 2022. Not all of those losses came from Bay Area companies, but the number reflects an industry-wide pullback that has persisted for several years, with workers bearing the brunt of it.
Other “Tech Exodus” Destinations Haven’t Taken Off
The cities often cited as California alternatives haven’t matched New York’s growth. Austin, Texas, a frequently mentioned relocation target, ranks a distant fifth on CBRE’s list, trailing San Francisco, Seattle, New York, and Toronto. Miami doesn’t crack the rankings at all.
New York Leverages Its Growing Leverage
New York is using its rising tech profile to push for policy wins. Mayor Mamdani recently backed a city council proposal on last-mile delivery contractors. The proposal would require Amazon and other companies to reclassify those contractors as employees. It’s a sign the city intends to set terms as more tech firms put down roots.
