Freelancers in San Francisco earn almost $60,000 on average

Data: U.S. Census Bureau via Fiverr; Note: Analysis includes tax returns for non-employer entities with at least $1,000 in annual receipts; Chart: Axios Visuals

The Bay Area is the most lucrative market in the U.S. for freelancers, according to a new report.

Why it matters: Freelancers account for 4.1% of the U.S. labor force — and many seem to be finding success, per freelance platform Fiverr's analysis. They contributed over $9.3 million in revenue to San Francisco's economy in 2023.

---

State of play: The analysis — which Fiverr published in partnership with market research firm Illuminas — shows that San José and San Francisco have the highest annual earnings per freelancer among the 30 biggest U.S. metros in 2023.

• Freelancers in San Francisco earned $59,979 on average in 2023, up about 32% from $45,265 in 2011.
• Those in nearby San José made an average estimated $60,135 in 2023.

By the numbers: San Francisco's freelance workforce ranks ninth in size among top markets with over 156,000 independent professionals in 2023.

• For technical services — which include data processing, engineering and computer/IT — they earned $73,744 on average.
• For professional services like legal, accounting and marketing, they earned $60,608 on average.
• For creative services — which range from art and writing to video production — they earned $32,717 on average.

Yes, but: These figures would still make freelancers low-income in San Francisco, where the poverty line for an individual is $82,200 based on the U.S. Department of Housing and Urban Development's estimates.

The big picture: The Bay Area and many of the other cities with higher freelancer earnings have comparatively high costs of living.

• As a result, they've had the lowest growth rate in independent professionals compared to other markets.
• About 29% of freelancers nationwide also have a traditional job, though the share who solely freelance is growing.

Friction point: Concerns about companies embracing generative AI are particularly pronounced among freelancers , many of whom are in creative fields and, with no strong ties to any particular employer, may feel especially vulnerable to being replaced with the emerging technology.

• Yet the report finds that 40% of freelancers are using some form of AI themselves to help get their work done.