College graduates have so many decisions in front of them when they finally get that degree and are done with school, especially where they're going to live. So, where are the best cities for recent college grads?
Realtor.com recently unveiled a list of the top rental markets for recent college grads based on key guiding criteria. The analysis ranked 313 cities and towns with a population of more than 75,000 that are located within the 50 largest metro areas.
Cities on the list “offer a harmonious mix of affordable renting options, job opportunities, and appealing lifestyle amenities,” according to Realtor.com. The list was capped at one city per metropolitan area to allow for a greater diversity of options.
Factors that determined the rankings include rent-to-income ratio, rental availability, job opportunities, job stability, the share of other grads in the area, average commute time to work and culture/lifestyle businesses (such as dining, entertainment and shopping options).
A lower rent-to-income ratio is preferred because it suggests that housing costs are a smaller proportion of a typical monthly paycheck, which can mean more monthly budget is available for other expenses, Realtor.com explained. Among the top 10 markets, Bloomington, MN, located within the Minneapolis–St. Paul–Bloomington metro area (19.9%), emerges as the most affordable top-ranked rental market within the top markets. That’s followed by Overland Park, KS and St. Louis, MO, both at 20.7%.
The rental vacancy rate measures the not-currently-lived-in supply of homes for rent, and can be a proxy for how easily potential renters could find a place to live, according to the website. Among the top 10 markets, Austin, TX, within the Austin–Round Rock metro area (9.0%), boasts the highest rental vacancy rate, followed by Atlanta, GA and Raleigh, NC, both at 8.7%.
A market with a higher proportion of recent college graduate-friendly occupations implies that new graduates may encounter less difficulty entering the workforce and securing positions that match their skills and qualifications, Realtor.com said. In the top 10 markets, Austin, TX, home to many tech-fueled company offices, leads with 29.6% of occupations in this category, followed by Raleigh, NC, with 28.8%, and Bloomington, MN at 26.7%.
A lower forecasted unemployment rate suggests that recent college graduates could encounter less competition when seeking employment, and better job security, which will help to launch their careers and achieve their professional goals, according to Realtor.com. Among the top 10 markets, Bloomington, MN (3.1%) is forecasted to have the lowest unemployment rate, followed by Austin, TX at 3.3%, and Raleigh, NC, Overland Park, KS, and Richmond, VA, all tied at 3.4%.
Living in markets with a high share of recent college graduates can benefit recent graduates by providing a supportive environment, networking opportunities, and access to entry-level jobs, the website noted. Among the top 10 cities, Pittsburgh, PA (4.4%), boasts the highest share, followed by Atlanta, GA (4.2%), and Richmond, VA (3.7%).
The rankings took into consideratin that the time spent on longer commutes can sometimes outweigh the monetary savings. Among the top 10 cities, Overland Park, KS, boasts the shortest average commute time of 22 minutes. That’s followed by Bloomington, MN, and Scottsdale, AZ, which both have an average commute time of 23 minutes.
Of course, you need to have some fun, too, and the top cities on the list all boast a greater abundance of entertainment, shopping, and lifestyle establishments. Among the top 10 markets, Beaverton, OR, claimed the highest position, boasting a ratio of 39.5 businesses per 1,000 households. Following closely are Atlanta, GA, with a ratio of 27.5, and Scottsdale, AZ, with a ratio of 25.2.
Top Rental Markets for College Graduates
1. Austin, TX
Rent-to-Income Ratio: 21.4%
College Grad Friendly Occupations: 29.6%
Average Commute Time: 26 min
Culture and Lifestyle Businesses: 21.5
2. Bloomington, MN
Rent-to-Income Ratio: 19.9%
College Grad Friendly Occupations: 26.7%
Average Commute Time: 23 min
Culture and Lifestyle Businesses: 22.4
3. Pittsburgh, PA
Rent-to-Income Ratio: 21.7%
College Grad Friendly Occupations: 24.9%
Average Commute Time: 25 min
Culture and Lifestyle Businesses: 24.6
4. Raleigh, NC
Rent-to-Income Ratio: 21.4%
College Grad Friendly Occupations: 28.8%
Average Commute Time: 25 min
Culture and Lifestyle Businesses: 17.1
5. Overland Park, KS
Rent-to-Income Ratio: 20.7%
College Grad Friendly Occupations: 24.5%
Average Commute Time: 22 min
Culture and Lifestyle Businesses: 18.1
6. Richmond, VA
Rent-to-Income Ratio: 24.6%
College Grad Friendly Occupations: 25.8%
Average Commute Time: 24 min
Culture and Lifestyle Businesses: 24.4
7. Scottsdale, AZ
Rent-to-Income Ratio: 24.4%
College Grad Friendly Occupations: 22.1%
Average Commute Time: 23 min
Culture and Lifestyle Businesses: 25.2
8. Beaverton, OR
Rent-to-Income Ratio: 22.9%
College Grad Friendly Occupations: 25.8%
Average Commute Time: 26 min
Culture and Lifestyle Businesses: 39.5
9. St. Louis, MO
Rent-to-Income Ratio: 21.7%
College Grad Friendly Occupations: 24.7%
Average Commute Time: 25 min
Culture and Lifestyle Businesses: 19
10. Atlanta, GA
Rent-to-Income Ratio: 26.7%
College Grad Friendly Occupations: 24.8%
Average Commute Time: 28 min
Culture and Lifestyle Businesses: 27.5