Key takeout
Recent reports show that for recent graduates facing uncertain job markets and rising rental costs, some cities are better than others.
It has been difficult for recent graduates to find work as business leaders are slow to hire amid the uncertainty of President Donald Trump’s tariffs. Additionally, many graduates expect far higher salaries than they can get amid rising costs, including rents that have skyrocketed in the wake of the pandemic.
Recent alumni looking to move at a more affordable price should consider locations like Austin, Raleigh and Minneapolis in a strong labor market for people with newly acquired degrees.
Realtor.com has ranked the best rental market for recent graduates, leveraging economic data from major metropolitan areas. The markets suitable for recent graduates have typically had lower rent-to-income ratios, predicted unemployment rates, higher rental rates, and provided a wide range of employment suitable for recent university graduates.
Ranked Market Rent and Income Ratio Rent Rental Vacancy Rate Recent University Alumni-Friendly Occupation Projected Unemployment Rate 1 Austin 18.9% 8.2% 29.4% 3.6% 1 Raleigh, NC 20.0% 9.0% 30.4% 3.3% 3 Overland Park, Kansas 20.6% 9.2% 25.5% 4.2% 27.3% 3.7% 4 St. Louis, Missouri 20.8% 8.0% 25.1% 4.0% 6 Richmond, Virginia 23.2% 8.2% 25.3% 3.3% 7 Pittsburgh, Penn. 22.3%8.7%24.3%4.1%8 Scottsdale, Arizona22.5%7.9%23.0%3.7%9 Richardson, Texas22.4%8.9%24.4%4.0%10 Atlanta, Georgia24.1%9.3%24.7%4.1%
Renters ages 25 to 34 reduce rents in these top markets compared to the national average. These tenants are typically far below the standard consumer benchmarks. This is 30% of the home’s income.
Plus, the high rental vacancy rate means that recent graduates have more options when looking for a home.
Recent university graduates in these markets may find more jobs that require a bachelor’s degree, but have no prior experience. The forecasted unemployment rate for most of these markets is below the Bureau of Labor Statistics’ latest figure in April, the national average of 4.2%.
