With a low rent-to-income ratio and a booming tech scene, Austin, Texas, comes in No. 1 on Realtor.com’s Top Rental Markets for Recent College Grads.
The list was compiled analyzing a number of factors that are top of mind for college graduates, such as rent affordability, job availability, commute time, social amenities, and the local share of recent graduates.
“This year’s rankings reflect a rental landscape shaped by falling rents and potentially shifting job markets,” said Danielle Hale, chief economist at Realtor.com. “We looked at where young people can launch their careers without sacrificing lifestyle, and the results include a mix of markets from Texas to Minnesota to Georgia. These markets aren’t just affordable areas with relatively more abundant rental options, they’re full of energy, opportunity, and a sense of community, everything a recent grad could want.”
The top 10 markets include:
- Austin
- Raleigh, North Carolina
- Overland Park, Kansas
- Minneapolis
- St. Louis
- Richmond, Virginia
- Pittsburgh
- Scottsdale, Arizona
- Richardson, Texas
- Atlanta
On average, according to Realtor.com, graduates in the top 10 markets spend 21.5% of their income on rent, well below the national average and below the 30% affordability benchmark. Following Austin at 18.9%, Minneapolis and Raleigh have the lowest rent-to-income rations at 19.7% and 20%, respectively.
In addition, Raleigh at 30.4% and Austin at 29.4% offer a high share of jobs requiring a bachelor’s degree without prior experience. According to the Indeed Job Index, Richmond and Scottsdale scored 126, indicating 26% more opportunities than pre-pandemic.
Atlanta and Overland Park topped Realtor.com’s list for rental availability with vacancy rates over 9%. Many of the markets are seeing new multifamily housing supply, with increased inventory and less competition.
Looking at the other metrics, Overland Park has a short 22-minute average commute, and Minneapolis leads in the share of recent graduates at 6.3%.
