San Francisco & San Jose emerge as top earning havens for U.S. freelancers, report finds

California is home to the two cities with the highest annual earnings per freelancer among the 30 largest U.S. metro areas in 2023, according to a recent report.

The document, commissioned by online freelance marketplace Fiverr and shared with Axios, is based on data from multiple government sources, researchers' estimates and a survey of 801 freelancers conducted between January 26 and February 7.

The analysis categorized freelancers into three groups: professionals, creatives and technicians. The cities that topped the overall ranking were San Jose, with an average annual income of $60,100, and San Francisco, with $60,000.

After these California cities, next on the list was Washington D.C., with an annual average of $54,800 among freelancers, according to the outlet.

The report highlights that these earnings can be difficult to break down. While freelancers in San Jose are estimated to have earned an average of $60,135 in 2023, and those in St. Louis just $36,234, people in both cities don't face the same cost of living.

"San Jose and many of the other cities with relatively high freelancer earnings have comparatively high costs of living," the report points out.

Freelancers in California are particularly well paid in the "professional" category, which includes legal, accounting and marketing.

In San Francisco, they earn an average of $60,600 a year, followed by $57,100 in San Jose and $54,200 in Boston.

Technical freelancers, including those working in architecture and computing, are the highest paid in the U.S., the study added.

At the top of the list are Washington, D.C. ($75,300), San Jose ($74,700) and San Francisco ($73,700).

Lastly, among the "creative" category, which included video producers and artists, Nashville, in Tennessee, has the best paid offer for freelancers, with an annual average earning of $56,100. Next in line is Los Angeles ($49.500) and New York ($37,100).

According to the researchers, freelancers make up 4.1% of the U.S. workforce, and many seem to be thriving, with 43% reporting increased revenue in the past year.

About 29% of freelancers also have a traditional job with a regular salary. However, the share of people who are exclusively freelancers is growing rapidly. It reached 71% of all freelancers in 2023, compared to 61% in 2021, the document says.

Among those who haven't quit their traditional jobs, a "striking" 75% of freelancers say they are "very satisfied" with their freelance work, compared with only 47% who feel the same way about their day jobs.