Austin, Texas, checks all the boxes for college graduates, according to a new Realtor.com report. Boasting the highest rental vacancy rate and share of college graduate-friendly occupations, the capital city ranks No. 1 on the Top Markets for Recent College Graduates list followed by Bloomington, Minnesota, and Pittsburgh.
Among the top 10 markets, the rent-to-income ratios span from 19.9% to 26.7% for households between the ages of 25 to 34. Bloomington, located within the Minneapolis-St. Paul metro, is the most affordable top-ranked rental market among the top markets with a ratio of 19.9%.
Realtor.com also calculated a proxy for rental availability by measuring vacancy rates. With plenty of options available, Austin has the highest rental vacancy rate at 9%.
"Graduating college is a major accomplishment and, as commencement speakers often point out, also the beginning of a new chapter. Graduates have a lot to consider when deciding where to start that next phase. Considerations like finding an affordable place to live, positive job prospects, and a nice lifestyle, are all important, and it can be tricky to balance each of these factors," says Danielle Hale, chief economist of Realtor.com.
"Renting is more affordable than buying in the short run and can be a great option, especially when life right after college is usually marked by navigation of uncertainty and personal and professional growth."
The top 10 rental markets for recent college graduates includes:
- Austin with a rent-to-income ratio of 21.4%;
- Bloomington with a rent-to-income ratio of 19.9%;
- Pittsburgh with a rent-to-income ratio of 21.7%;
- Raleigh, North Carolina, with a rent-to-income ratio of 21.4%;
- Overland Park, Kansas, with a rent-to-income ratio of 20.7%;
- Richmond, Virginia, with a rent-to-income ratio of 24.6%;
- Scottsdale, Arizona, with a rent-to-income ratio of 24.4%;
- Beaverton, Oregon, with a rent-to-income ratio of 22.9%;
- St. Louis with a rent-to-income ratio of 21.7%; and
- Atlanta with a rent-to-income ratio of 26.7%.
Following college, graduates are looking for opportunities to kick-start their career. Using data from the Bureau of Labor Statistics, Realtor.com categorized occupations that require a bachelor's degree but no prior experience as recent college-graduate friendly.
Austin, which is home to many tech-fueled company offices, leads with 29.6% of occupations in this category in the surrounding metro, followed by Raleigh with 28.8% and Bloomington with 26.7%. Bloomington is also projected to have the lowest unemployment rate in 2024 (3.1%) among the top 50 metros. Closely behind, the projected unemployment rate for Austin in 2024 is 3.3%.
