The Bureau of Labor Statistics projects that the number of software developers employed in the U.S. will grow 25% between 2021 and 2031, from 1.6 million to over 2 million jobs, making this career path one of the fastest-growing, most in-demand jobs. As the career becomes more popular, new grads may be curious which cities are the best cities for software developers.
However, amid widespread layoffs in Big Tech, the continued popularity of remote and hybrid work arrangements, and the threat of an economic downturn, software developers starting their careers may be considering living and working in smaller cities.
With that in mind, we examined small cities on a set of nine criteria to determine the best small cities to start a career as a software developer.
Methodology: How We Ranked the Cities
We evaluated 94 U.S. principal cities of Metropolitan Statistical Areas (MSAs) with populations between 100,000 and 150,000. We scored and ranked these cities on nine criteria, including the average pay for software developers, the employment of software developers in the area compared to the national average, job market factors, broadband availability, and affordability.
Here’s a detailed breakdown of our data sources:
- Average hourly wage for software developers (Source: Bureau of Labor Statistics, May 2022)
- Employment of software developers in the area relative to the national average (Source: Bureau of Labor Statistics, May 2022)
- Price level as a percentage of the national price level (Source: Bureau of Economic Analysis, 2021)
- Percentage of residents spending 30% or more of their income on housing (Source: U.S. Census Bureau, 2021)
- Percentage of residences with 250+ Mbps broadband availability (Source: FCC National Broadband Map, June 2022)
- Job growth (Source: Bureau of Labor Statistics, March 2022 to March 2023)
- Unemployment rate (Source: Bureau of Labor Statistics, March 2023)
- Arts, entertainment, and recreation establishments (per 10,000 residents) (Source: U.S. Census Bureau, 2021)
- Poverty rate (Source: U.S. Census Bureau, 2021)
Crunching the Numbers
Our scores are weighted, meaning that not every factor contributes equally to a city’s final score. Here is the breakdown of the score-weighting:
- 40%: Average hourly wage for software developers and employment of software developers in the area compared to the national average
- 30%: Price level as a percentage of the national price level and percentage of residents spending 30% or more of their income on housing
- 15%: Job growth, unemployment rate, and poverty rate
- 10%: Percentage of residences with 250+ Mbps broadband availability
- 5%: Arts, entertainment, and recreation establishments (per 10,000 residents)
We normalized all individual factors by converting them to percentiles. We then calculated a weighted average of these normalized scores to get an overall score for each city. Note: For some factors, a higher value is better; for others, a lower value is better. We took these different directions into account when computing scores.
For more details, see our Full Methodology section at the end of this article.
The Best Small Cities to Start a Career as a Software Developer
1. Santa Clara, California
- Average hourly wage for software developers: $112.76
- Employment of software developers in the area compared to the national average: 7.2
- Price level as a percentage of the national price level: 112%
- Percentage of residents spending 30% or more of their income on housing: 26.4%
- Percentage of residences with 250+ Mbps broadband availability: 95%
- Job growth: 2.2%
- Unemployment rate: 2.9%
- Poverty rate: 8.8%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 3.6
Santa Clara, California, is the top city in our list of the best small cities to start a career as a software developer. It has the highest average hourly wage for software developers of any city in our data set: $112.76. The city also ranks highest of all the cities for its employment of software developers, which is 7.2 times the national average.
Job growth in Santa Clara outpaces 84% of the cities (2.2%). Its unemployment rate of 2.9% is lower than 76% of the cities, and its poverty rate of 8.8% is lower than 82% of the cities.
Though Santa Clara’s prices are 112% of the national price level, only 26.4% of people in Santa Clara spend 30% or more of their income on housing, a lower percentage than 93% of the cities.
With 95% of residences having access to 250+ Mbps broadband, Santa Clara only scores in the 52nd percentile for internet availability. There are 3.6 arts, entertainment, or recreation establishments per 10,000 residents in Santa Clara, which is lower than 63% of the cities.
>>MORE: The Best Cities for High-Paying Entry-Level Jobs
2. Palm Bay, Florida
- Average hourly wage for software developers: $58.49
- Employment of software developers in the area compared to the national average: 1.8
- Price level as a percentage of the national price level: 99%
- Percentage of residents spending 30% or more of their income on housing: 29.1%
- Percentage of residences with 250+ Mbps broadband availability: 98%
- Job growth: 2.9%
- Unemployment rate: 2.6%
- Poverty rate: 15.1%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 3.4
The second city on our list of the best small cities for software developers is Palm Bay, Florida. There are 1.8 times as many software developers employed in Palm Bay as the national average, a higher ratio than 88% of the cities in our data set. Also, Palm Bay is in the 97th percentile for broadband access; 98% of residences in Palm Bay have access to 250+ Mbps broadband. Palm Bay also stands out for its job growth of 2.9% between March 2022 and March 2023, which is higher than 95% of the cities.
Palm Bay lags behind Santa Clara in terms of its average hourly wage for software developers: $58.49 compared to Santa Clara’s $112.76. However, Palm Bay is more affordable than Santa Clara, with a price level that is 99% of the national level.
Forrest Bland, a software engineer for Northrop Grumman in Palm Bay, says that the city’s tech industry is “very good.” He mentions that there are many other defense companies in the area that employ software developers, like L3Harris, Raytheon, Renesas, and Collins Aerospace.
Bland also mentions a coworking and community space for startups in Palm Bay called Groundswell “where multiple startups reside, and engineers go to work on ideas together.”
3. Bellevue, Washington
- Average hourly wage for software developers: $74.85
- Employment of software developers in the area compared to the national average: 3.8
- Price level as a percentage of the national price level: 115%
- Percentage of residents spending 30% or more of their income on housing: 26.8%
- Percentage of residences with 250+ Mbps broadband availability: 94%
- Job growth: 1.8%
- Unemployment rate: 3.4%
- Poverty rate: 7.4%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 5.8
Bellevue, Washington, a city near Seattle, claimed the third spot on our list. The employment of software developers in Bellevue is 3.8 times the national average, putting Bellevue ahead of 97% of the cities we examined in terms of that metric. The average hourly wage for software developers in Bellevue – $74.85 – is also higher than 94% of cities in our data set. Bellevue also scores reasonably well for its poverty rate, which is lower than the poverty rate in 89% of the cities.
However, the price level in Bellevue is 115% of the national average, making the city more expensive than 94% of the other cities. Despite that, the percentage of people in Bellevue spending 30% of their income or more on housing (26.8%) is lower than 89% of the cities.
4. Centennial, Colorado
- Average hourly wage for software developers: $62.86
- Employment of software developers in the area compared to the national average: 1.6
- Price level as a percentage of the national price level: 109%
- Percentage of residents spending 30% or more of their income on housing: 25.6%
- Percentage of residences with 250+ Mbps broadband availability: 94%
- Job growth: 1.3%
- Unemployment rate: 2.7%
- Poverty rate: 4%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 4.1
Centennial, Colorado, outside of Denver, placed fourth on our list. The city has an exceptionally low poverty rate (4%), and only 25.6% of people in Centennial spend 30% or more of their income on housing. That is a smaller portion of people than in 96% of the cities we examined.
The employment of software developers in Centennial is 1.6 times the national average, placing the city in the top 14% of cities in our data set in terms of that metric. Software developers in Centennial make an average of $62.86 per hour, a higher wage than in 80% of the small cities in our data set.
Centennial scored less well in terms of its affordability, since its price level is 109% of the national level. Though 94% of residences in Centennial have access to 250+ Mbps broadband, that percentage is rather low compared to other cities, putting Centennial in the 35th percentile for broadband availability.
5. Renton, Washington
- Average hourly wage for software developers: $74.85
- Employment of software developers in the area compared to the national average: 3.8
- Price level as a percentage of the national price level: 115%
- Percentage of residents spending 30% or more of their income on housing: 39.9%
- Percentage of residences with 250+ Mbps broadband availability: 97%
- Job growth: 1.76%
- Unemployment rate: 3.4%
- Poverty rate: 10.3%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 5.8
Renton, Washington, is a Seattle suburb that ranked fifth on our list of the best small cities for software developers. The city is in the same metropolitan area as Bellevue, where the employment of software developers is 3.8 times the national average, and software developers make $74.85 per hour on average.
Renton scores well in terms of broadband availability, as 97% of residences have access to high-speed broadband. The number of arts, entertainment, and recreation establishments in Renton and Bellevue is also notable at 5.8 per 10,000 residents, a higher value than 80% of cities in our data set.
Like Bellevue, Renton is expensive. Unlike Bellevue, a relatively high percentage of people in Renton spend 30% or more of their income on housing – 39.9%.
>>MORE: The Best Small Cities for Remote Work
6. Sandy Springs, Georgia
- Average hourly wage for software developers: $58.96
- Employment of software developers in the area compared to the national average: 1.5
- Price level as a percentage of the national price level: 99%
- Percentage of residents spending 30% or more of their income on housing: 30.3%
- Percentage of residences with 250+ Mbps broadband availability: 94%
- Job growth: 1.0%
- Unemployment rate: 3.1%
- Poverty rate: 8.9%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 8.8
Sandy Springs, Georgia, a suburb of Atlanta, is the sixth city on our list. There are 8.8 arts, entertainment, and recreation establishments per 10,000 people in Sandy Springs, a higher number than 95% of cities we considered. The number of software developers employed in Sandy Springs is 1.5 times the national average, putting Sandy Springs ahead of 86% of cities we considered in terms of that metric.
Sandy Springs has a lower percentage of people spending 30% or more of their income on housing (30.3%) than 70% of the cities in our data set. Its unemployment rate of 3.1% and its poverty rate of 8.9% lead it to score in the 74th and 80th percentile for those metrics, respectively.
Ninety-four percent of residences in Sandy Springs have access to high-speed broadband, which is low compared to other cities. In addition, the city’s job growth between March 2022 and March 2023 (1%) and price level of the national level (99%) lead the city to score near the middle of the pack for those metrics.
7. Concord, North Carolina
- Average hourly wage for software developers: $61.75
- Employment of software developers in the area compared to the national average: 1.4
- Price level as a percentage of the national price level: 97%
- Percentage of residents spending 30% or more of their income on housing: 28.9%
- Percentage of residences with 250+ Mbps broadband availability: 93%
- Job growth: 0.8%
- Unemployment rate: 3.4%
- Poverty rate: 9.3%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 4.8
Concord, North Carolina, located outside of Charlotte, earned the seventh spot in our ranking. The number of software developers employed in Concord is 1.4 times the national average, higher than 84% of the cities. Software developers in Concord make an average of $61.75 per hour, which is in the 77th percentile.
Concord also scored reasonably well in terms of the percentage of people spending 30% or more of their income on housing and the poverty rate. The city has lower values for both of these metrics than over 75% of cities in our data set.
Concord lags behind the other cities in terms of job growth, for which its 0.8% is lower than 62% of the other cities’ rates. In addition, 93% of residences in Concord have access to high-speed broadband, which is a lower percentage than in 78% of the other cities.
8. San Mateo, California
- Average hourly wage for software developers: $87.32
- Employment of software developers in the area compared to the national average: 2.7
- Price level as a percentage of the national price level: 120%
- Percentage of residents spending 30% or more of their income on housing: 34.9%
- Percentage of residences with 250+ Mbps broadband availability: 96%
- Job growth: 1.2%
- Unemployment rate: 3.1%
- Poverty rate: 6%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 4.5
San Mateo, California, is the second city in Silicon Valley to score highly in our ranking, along with No. 1-ranked Santa Clara. Like Santa Clara, San Mateo has a very high average hourly wage for software developers: $87.32, which is higher than 98% of the cities we examined. The employment of software developers in San Mateo is 2.7 times the national average, leading San Mateo to score higher than 93% of cities in our data set for this metric.
San Mateo also has a poverty rate lower than 97% of the cities, and its unemployment rate is lower than the unemployment rate in 71% of the cities.
However, the city is one of the most expensive of all the cities we examined, with a price level that is 120% of the national level. Also, 34.9% of people in San Mateo spend 30% or more of their income on housing, which is the median value across all the cities in the data set.
9. Kent, Washington
- Average hourly wage for software developers: $74.85
- Employment of software developers in the area compared to the national average: 3.8
- Price level as a percentage of the national price level: 115%
- Percentage of residents spending 30% or more of their income on housing: 38.3%
- Percentage of residences with 250+ Mbps broadband availability: 96%
- Job growth: 1.8%
- Unemployment rate: 3.4%
- Poverty rate: 10.9%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 5.8
Kent, Washington is the third city near Seattle to land a spot in our ranking of the best small cities for software developers. It is in the same metropolitan area as Bellevue and Renton, which scored highly in terms of the average hourly wage for software developers and employment of software developers compared to the national average.
However, Kent is behind its counterparts in terms of the poverty rate. It also has a higher percentage of people spending 30% or more of their income on housing than Bellevue and a lower percentage of residences with high-speed broadband access than Renton.
10. Hillsboro, Oregon
- Average hourly wage for software developers: $59.57
- Employment of software developers in the area compared to the national average: 1.4
- Price level as a percentage of the national price level: 105%
- Percentage of residents spending 30% or more of their income on housing: 29.7%
- Percentage of residences with 250+ Mbps broadband availability: 96%
- Job growth: 0.5%
- Unemployment rate: 4.1%
- Poverty rate: 6.4%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 4.4
Located outside of Portland, Hillsboro, Oregon, is the tenth city in our ranking. The average hourly wage for software developers in Hillsboro is $59.57, higher than 72% of cities in our data set. The number of software developers employed in Hillsboro is 1.39 times the national average, which is higher than 85% of the cities.
Hillsboro is notable for its low poverty rate and relatively low percentage of people spending 30% or more of their income on housing, for which it scored in the 95th and 73rd percentiles, respectively. However, the price level of 105% of the national level is higher than 71% of the cities in our data set, and Hillsboro is in the bottom third of the cities in terms of job growth and unemployment rate.
11. Provo, Utah
- Average hourly wage for software developers: $55.97
- Employment of software developers in the area compared to the national average: 2.1
- Price level as a percentage of the national price level: 96%
- Percentage of residents spending 30% or more of their income on housing: 40%
- Percentage of residences with 250+ Mbps broadband availability: 97%
- Job growth: 1.8%
- Unemployment rate: 2.3%
- Poverty rate: 20%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 4.7
The eleventh city in our list of the best small cities for software developers is Provo, Utah. Its employment of software developers compared to the national average is higher than 91% of the cities we examined (2.1 times the national average), but its average hourly wage for software developers is the median value across the cities ($55.97).
The unemployment rate in Provo is low, but the poverty rate is high. In terms of job growth and access to high-speed broadband, Provo scored in the 72nd and 77th percentiles, respectively. The city scored in the bottom third for the percentage of people who spend 30% or more of their income on housing (40%).
Provo’s price level is 96% of the national level, making the city more affordable than 62% of the cities in our data set.
12. Boulder, Colorado
- Average hourly wage for software developers: $81.61
- Employment of software developers in the area compared to the national average: 3.3
- Price level as a percentage of the national price level: 101%
- Percentage of residents spending 30% or more of their income on housing: 42.8%
- Percentage of residences with 250+ Mbps broadband availability: 93%
- Job growth: 1.9%
- Unemployment rate: 2.3%
- Poverty rate: 23%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 10.1
Boulder, Colorado, earned the twelfth spot in our ranking. It scored well in terms of its average hourly wage for software developers, which is higher than 97% of cities in our data set. The employment of software developers in Boulder is also high, at 3.3 times the national average.
Notably, Boulder has 10.1 arts, entertainment, and recreation establishments per 10,000 residents, a higher number than 96% of the cities. Its unemployment rate of 2.3% is also lower than the unemployment rates in 90% of the cities.
Boulder didn’t score as well in terms of its price level, the percentage of people spending 30% or more of their income on housing, and its poverty rate. The price level of 101% of the national price level is higher than 63% of the cities. Boulder scored in the 15th percentile for the percentage of residents spending 30% or more of their income on housing (42.8%). The poverty rate of 23% is higher than 89% of the cities.
13. Columbia, Maryland
- Average hourly wage for software developers: $67.24
- Employment of software developers in the area compared to the national average: 1.1
- Price level as a percentage of the national price level: 105%
- Percentage of residents spending 30% or more of their income on housing: 28.7%
- Percentage of residences with 250+ Mbps broadband availability: 92%
- Job growth: 0.6%
- Unemployment rate: 2.8%
- Poverty rate: 8.9%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 4.4
Columbia, Maryland, located outside of Baltimore, is the thirteenth city in our ranking. Across all the metrics, it scored best in terms of the average hourly wage for software developers ($67.24), for which it scored in the 84th percentile. It also performed well in terms of its unemployment rate, which is lower than 82% of the cities, and its poverty rate, which is lower than 80% of the cities.
Though Columbia’s price level is 105% of the national level, 28.7% of residents spend 30% or more of their incomes on housing, which is lower than 80% of cities. The employment of software developers in Columbia is 1.1 times the national average, a ratio higher than 72% of cities we examined.
Columbia did not score well in terms of access to high-speed broadband: 92% of residents have access, which is a lower percentage than 81% of the cities.
14. Round Rock, Texas
- Average hourly wage for software developers: $56.91
- Employment of software developers in the area compared to the national average: 2
- Price level as a percentage of the national price level: 100%
- Percentage of residents spending 30% or more of their income on housing: 36.7%
- Percentage of residences with 250+ Mbps broadband availability: 93%
- Job growth: 2.8%
- Unemployment rate: 3.2%
- Poverty rate: 8.4%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 5.1
Round Rock, Texas, which is near Austin, earned the No. 14 spot in our ranking. It scored in the 94th percentile for job growth and the 89th percentile for its employment of software developers, which is twice the national average. It also has a relatively low poverty rate, and it has more arts, entertainment, and recreation establishments than 74% of cities in our data set.
The average hourly wage for software developers in Round Rock is higher than it is in 57% of cities in our data set. Round Rock’s price level is equal to the national price level, meaning it is more expensive than 61% of the cities we examined. It also scored in the 26th percentile for high-speed broadband availability.
15. Carmel, Indiana
- Average hourly wage for software developers: $50.27
- Employment of software developers in the area compared to the national average: 0.6
- Price level as a percentage of the national price level: 95%
- Percentage of residents spending 30% or more of their income on housing: 22.1%
- Percentage of residences with 250+ Mbps broadband availability: 93%
- Job growth: 2%
- Unemployment rate: 2.7%
- Poverty rate: 3.4%
- Arts, entertainment, and recreation establishments (per 10,000 residents): 6.1
The final city in our list of the top fifteen best small cities for software developers is Carmel, Indiana. Notably, Carmel has the lowest percentage of people spending 30% or more of their income on housing of all the cities in our data set (22.1%). It also has the lowest poverty rate of all the cities.
Carmel scored well for job growth (79th percentile), unemployment rate (85th percentile), and the number of arts, entertainment, and recreation establishments per 10,000 people (85th percentile). However, the number of software developers employed in Carmel is 0.6 times the national average (10.37 per thousand jobs), a lower value than 49% of the cities. The average hourly wage for software developers in Carmel is lower than it is in 74% of the cities.
“As a born and raised Carmel native, I find that a city should serve as a stronghold for a software developer to develop their non-technical skills vs. being a destination to work,” says Jerrod Smith, a senior software engineer at Flexware Innovation, a company in the area.
“Carmel is full of forward thinkers with money to back their ideas,” Smith says. “I would define it as an open market for those with exceptional ability.”
Comparing the Best Cities for Software Developers
Trying to figure out where to live post-college? We’ve got some tips for finding the best city for you in our roundup of the Best Cities for Young Professionals for Work-Life Balance.
Full Methodology
Forage created our ranking of the best small cities for software developers by analyzing 94 U.S. principal cities of MSAs across nine factors. The following factors apply to our analysis:
- We used data at the Place level for broadband coverage, the percentage of residents spending 30% of their income or more on housing, and the poverty rate.
- To determine the arts, entertainment, and recreation establishments per 10,000 residents, we calculated averages across all counties per Place. For example, for Places that span two counties, we calculated the average arts, entertainment, and recreation establishments per capita across the two counties.
- For the five other indicators, we used data at the MSA level.
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