Many college graduates are figuring out where to live as they finish their time in academia, and renting is a common route for them to take.
In its newly released “Top Rental Markets for Recent College Grads” report, Realtor.com looked at more than 300 places across the U.S., identifying the most “grad-friendly” cities that could serve them best as they embark on the newest chapter in their lives.
The real estate marketplace took information such as the rent-to-income ratio, the time it takes to get to work, social amenities and projected unemployment rates into account when doing the formulation.
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These are cities at the top of Realtor.com’s ranking of rental markets for recent college graduates.
Austin, Texas
Austin’s rent-to-income ratio and proportion of entry-level jobs that grads could land, 18.9% and 29.4%, respectively, helped it earn the No. 1 spot, the report said. The city also held the position last year.
Raleigh, North Carolina
More than 30% of jobs in the Raleigh area require a bachelor’s degree but no previous experience, more than any other city, according to Realtor.com. The city is the capital of the Tar Heel State.
Overland Park, Kansas
Overland Park is located just south of Kansas City. It boasts a rental vacancy rate of 9.2%, per the report. The average time it takes to get to work there was also comparatively low, at 22 minutes.
Minneapolis
Realtor.com pegged Minneapolis’ share of recent college graduates – people aged 25 to 29 with a college degree – at 6.3%, higher than any of the other states in the top 10. People in the city typically use 19.7% of their income on rent.
St. Louis
St. Louis, famous for its Gateway Arch, has seen its number of job openings rise 14% compared to the pre-COVID era, Realtor.com reported, citing the Indeed Hiring Index. The area has 8% of its rentable housing available for occupancy.
Behind those markets, Realtor.com dubbed Richmond, Virginia, as No. 6, Pittsburgh as No. 7, Scottsdale, Arizona, as No. 8, Richardson, Texas, as No. 9 and Atlanta as No. 10 for college graduates.
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“This year’s rankings reflect a rental landscape shaped by falling rents and potentially shifting job markets,” Realtor.com chief economist Danielle Hale said in a statement. “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.”
Median rent cost $1,699 nationwide in April, according to a separate mid-May report from Realtor.com.
Studios, one-bedroom and two-bedroom units all saw the median cost of rent go down year over year last month, with studios and one-bedrooms posting a 1.9% decline; for two-bedrooms, the drop was 1.7%.
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