The Ratio That Actually Matters
Raw salary data is misleading without context. What matters is purchasing power: how much your salary can actually buy after accounting for local prices. A $160,000 salary in San Francisco has less purchasing power than a $100,000 salary in Raleigh, NC — and the gap is getting wider, not smaller.
The metric to track: (Median salary for your occupation in the metro) ÷ (Local price index). The higher this ratio, the more your money goes.
Top Cities Where Tech Salaries Go Far
| City | Median Software Engineer Salary | RPP Index | Purchasing Power Score |
|---|---|---|---|
| Raleigh, NC | $118,000 | 91 | 129.7 |
| Austin, TX | $132,000 | 100 | 132.0 |
| Phoenix, AZ | $115,000 | 96 | 119.8 |
| Denver, CO | $128,000 | 103 | 124.3 |
| Atlanta, GA | $120,000 | 95 | 126.3 |
| Columbus, OH | $108,000 | 91 | 118.7 |
| Seattle, WA | $155,000 | 117 | 132.5 |
| San Francisco, CA | $185,000 | 141 | 131.2 |
| New York City, NY | $165,000 | 135 | 122.2 |
| Boston, MA | $148,000 | 128 | 115.6 |
Note: Purchasing Power Score = (Salary ÷ RPP) × 100. Higher is better.
The Standout Cities
Raleigh, NC
Raleigh's Research Triangle (home to Duke, UNC, NC State, and a dense cluster of pharma and tech companies) offers tech salaries approaching coastal levels — but at a cost of living 10% below national average. No state income tax on earned income at the state level keeps more of each paycheck. One of the strongest "hidden" tech markets in the country.
Austin, TX
Still strong despite rent increases. No state income tax gives Austin workers a permanent advantage over California counterparts. The tech sector has matured significantly — companies like Apple, Google, Tesla, and Oracle have major Austin presences, bidding up salaries.
Seattle, WA
Technically a high-cost city, but tech salaries are among the highest in the world (Amazon, Microsoft, Google all headquartered or major hub here). No state income tax. For software engineers specifically, Seattle offers elite total compensation that actually competes with — and sometimes beats — San Francisco on a purchasing-power basis.
Worst Ratio Cities
The cities with the weakest salary-to-cost ratio for most workers:
- San Francisco (non-tech workers): FAANG salaries are exceptional; everyone else is squeezed
- Los Angeles: Entertainment and tech pay well, but the median worker in LA faces very high housing costs relative to typical salaries
- Boston: High education and healthcare costs inflate the overall index; salaries outside those sectors don't keep pace
- Miami: Rapid rent appreciation has made Miami one of the worst value cities relative to local salary levels
How to Run Your Own Comparison
- Look up the median salary for your occupation in each target metro using BLS data or this site
- Find the BEA RPP for each metro
- Divide salary by RPP index for a comparable purchasing power score
- Factor in state income tax differences
- Compare the resulting adjusted numbers
The salary-to-cost ratio is the most important number in your relocation decision. Get this right, and everything else is negotiable.