App pricing is complicated. Period.
We already spoke in details about the exact factors, which determine the app cost and how to receive an accurate app cost estimate from the developers.
Today we’ve decided to explore the subject further and dig into the average hourly rates for app development in different cities across the US. Here are the key findings from our market research.
Understand The Type Of Company You Are Hiring
Rates for app development will differ depending on the type of company you choose to partner with. Those can be conditionally divided into three categories:
- Freelancers/Independent Contractors – in general, freelancers will charge slightly higher rates compared to the median hourly rate of an in-house employee. Their fees often include an additional padding that goes into covering their business running costs. Freelancers with less experience may initially charge less, but the quality of the product may be worse and the development timeline may be extended.
- Small and Mid-sized agencies (under 50 folks) usually offer the best balance of quality versus pricing. They are capable of handling middle-to-large projects within acceptable timelines.
- “Big Guys” or Enterprise companies usually charge the highest hourly rates to match their status. While the quality of your product will likely be superb, the development timeline will be extended due to the inner bureaucracy within the company (and you will be billed for those hours too).
In this research, the provided rates represent the median app developers rates and don’t specifically account for the type of company you’ll be partnering with. All the data was sourced via PayScale, Glass Door and Clutch.co for the following locations:
App Developers Rates in Los Angeles
- The average salary is $105,581 annually. The number is 46.3% higher than the national median salary of $72,187. The average in-house hourly rate can be roughly estimated at $55/hour.
- Top app developers in Los Angeles, who are working with a mid-sized agency charge between $100-$150 per hour on average.
- The average iOS developer salary is $102,000 per year. Android developers earn $104,000 per year on average.
- UX designers earn up to $97,700 per year and UI guys receive $81,117 as a paycheck.
App Developers Rates in San Francisco
- The average mobile app developer salary is $121,558, which is 68.4% higher than the national median salary. The average in-house hourly rate can be roughly estimated at $63/hour.
- iOS developers earn around $107,088 per year and Android fellows can expect to earn $108,490.
- In general, companies based in San Francisco tend to charge between $100-$150 per hour. Surprisingly, according to Clutch, agencies based in Palo Alto are comfortable with working for $50 per hour on average. Arguably, that has something to do with the competition in the area and being more accommodating for startups.
App Developers Rates in Boston
- App developers in Boston receive $82,238 per year. In hourly rates that stands for $43/hour.
- iOS developers earn $80,012 per year and their Android counterparts can expect to receive $83,875 per year.
- App development companies, however, tend to offer a rather large price gap. While certain enterprise-sized companies claim the rates to be under $50/hour, the majority of smaller agencies tend to charge $100-$150 on average.
App Developers Rates in New York City
- App developers in New York receive $91,376 annually, which stands for $48/hour.
- iOS folks receive around $85,000 per year and Android developers can earn around $86,185.
- Again, the majority of public data available about the average agency rates indicates that it is $100-$150 per hour.
App Developers Rates in Atlanta
- The average annual salary for app developers is estimated at $85,484 or $44/hour.
- iOS app developers earn around $74,443 annually and Android peeps get $77,442 per year.
- According to Clutch, the best app developers in Atlanta charge around $100/hour on average.
App Developers Rates in Chicago
- Annual paycheck in Chicago is $83,204, which means that mobile app developers earn around $43 per hour.
- iOS developers earn $80,456 per year and Android fellow’s home takeaway is $77,442, which makes Chicago the first city on the list where building a custom Android app may turn out to be cheaper than an iPhone or iPad app.
- In Chicago, the majority of companies will charge $150-$199 per hour, though you can find developers for under $50 as well.
App Developers Rates in Denver
- Mobile app developers in Denver can expect $89,375 in the annual work contract. That stands for approx. $47/hour.
- Android software developers earn $79,616 per year and iOS specialists can expect to receive $85,000 per year.
- The majority of app development companies in Denver and Colorado in general, tend to stick with a $150-$200 hourly rate.
App Developers Rates in Miami
- Mobile app developers in Miami and Florida, in general, earn around $85,851 per year. That is about $45/hour.
- iOS developers can expect a hefty $94,363 per year (and a lot of sunshine), while Android folks earn $98,000 per year.
- In Miami, the go-to rate for app development agencies is between $50-$100 per hour, while you can expect to pay closer to $150 in Orlando or Tampa.
De-Coding The Data
What immediately falls to attention is the disparity of the in-house developers’ hourly rates and the numbers quoted by the agencies.
Here’s a quick explanation: having an in-house team stands for additional overhead costs ranging from hiring and onboarding to office space and electricity bills. When you choose to outsource the development, your partner is to account for these additional expenses. Hence comes the higher price tag.
While the majority of app development companies tend to charge per hour, certain providers are also open to working with a fixed-price contract. You can learn the difference between the two pricing models from this post.
On a global scale the average hourly rates look the following way: