A Combination of High Income-to-Rent Ratio, a
Graduate-friendly Job Market and
Appealing Lifestyle Make These Metros the Top Markets for Recent
College Graduates
SANTA
CLARA, Calif., May 7, 2024
/PRNewswire/ -- For graduates evaluating where they'll make their
mark on the real world after college, Austin, Texas may offer them the best option
for living, working and camaraderie amongst their peers. In a
new report, Realtor.com® uncovered The Top Markets for
Recent College Graduates and Austin ranked #1, followed by Bloomington, Minn. and Pittsburgh, Pa. to round out the top
three.
"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,"
said 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."
Top Rental Markets for Recent College Graduates
Rank
|
Markets
|
Rent-to-Income
Ratio
|
Share of Recent
College Grad-Friendly
Occupations
|
Average
Commute
Time
|
Yelp Culture
and Lifestyle
Businesses per
1000 Households
|
1
|
Austin,
Texas
|
21.4 %
|
29.6 %
|
26 min
|
21.5
|
2
|
Bloomington,
Minn.
|
19.9 %
|
26.7 %
|
23 min
|
22.4
|
3
|
Pittsburgh,
Pa.
|
21.7 %
|
24.9 %
|
25 min
|
24.6
|
4
|
Raleigh,
N.C.
|
21.4 %
|
28.8 %
|
25 min
|
17.1
|
5
|
Overland Park,
Kan.
|
20.7 %
|
24.5 %
|
22 min
|
18.1
|
6
|
Richmond,
Va.
|
24.6 %
|
25.8 %
|
24 min
|
24.4
|
7
|
Scottsdale,
Ariz.
|
24.4 %
|
22.1 %
|
23 min
|
25.2
|
8
|
Beaverton,
Ore.
|
22.9 %
|
25.8 %
|
26 min
|
39.5
|
9
|
St. Louis,
Miss.
|
21.7 %
|
24.7 %
|
25 min
|
19
|
10
|
Atlanta, Ga.
|
26.7 %
|
24.8 %
|
28 min
|
27.5
|
The Realtor.com® analysis of Top Markets for Recent
College Graduates uncovers the places in the U.S. where the class
of 2024 can find a healthy mix of affordable renting options, job
opportunities, and appealing lifestyle based on the following
metrics:
Affordable Rent
Realtor.com® calculated the
ratio between rent and income for households between the ages of
25-34, which represents how much of their typical gross income is
allocated to housing expenses. A low ratio is better as it suggests
the housing costs take up a smaller portion of the monthly
paycheck. Among the top 10 markets, the rent-to-income ratio spans
from 19.9% to 26.7%. Bloomington,
located within the Minneapolis-St.
Paul-Bloomington metro
area, emerges as the most affordable top-ranked rental market among
the top markets with a ratio of 19.9%.
Plenty of Choices
For recent college graduates
starting a fresh new post-grad life, finding an apartment to rent
can be tricky, if there aren't many options available it becomes
even harder. Realtor.com® calculated a proxy for rental
availability by measuring vacancy rates. Higher vacancy rates means
a market could offer more options to choose from while potentially
tapping into bargaining and negotiating with landlords because of
the high supply. Out of the top markets, Austin within the Austin-Round
Rock metro area (9.0%), boasts the highest rental vacancy
rate.
College-Graduate Friendly Jobs
When moving to a
new city after college, graduates are looking for opportunities to
kick start their career. In the Realtor.com® list of Top
Markets for Recent College Graduates, people may encounter less
difficulty entering the workforce and securing positions that match
their skills and qualifications. To define these roles, Realtor.com
used data from the Bureau of Labor Statistics, categorizing
occupations that require a bachelor's degree but no prior
experience as recent college-graduate friendly. Austin, Texas, home to many tech-fueled
company offices, leads with 29.6% of occupations in this category
in the surrounding metro, followed by Raleigh, N.C. with 28.8%, and Bloomington, Minn. with 26.7%.
Job Stability
How well one can kick start their
career is an important aspect that many college graduates consider
when moving to a new city. Another aspect is how well they will be
able to grow their career, and whether the area boasts a stable job
market. 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. In the
Realtor.com® report, Bloomington, Minn. is forecasted to have the
lowest unemployment rate in 2024 (3.1%) among the top 50 metros,
followed by Austin, Texas with an
unemployment rate of 3.3% in the surrounding metro.
Opportunities for Job Growth
To measure job
opportunities, Realtor.com® used the Indeed Job Posting Index, which details the change
in job openings compared to pre-pandemic baselines. A higher index
for a market indicates a healthy number of opportunities; recent
graduates can use the index to identify whether a place can offer
positive job growth in the future. Within the top 10 markets, the
index ranged between 114 and 166. Specifically, Scottsdale, Ariz. (an average index score of
166) experienced the highest increase of job openings when compared
to the pre-pandemic period.
Surrounded by Peers
When moving to a new city,
college graduates looking to make new friends and encounter people
in similar life stages may turn to places with a good amount of
peers who can provide a supportive environment, networking
opportunities, and access to entry-level jobs. This enhances the
transition from college to life after university. Among the
top 10 markets, the share of recent college graduates ranged from
2.5% to 4.4%. Notably, Pittsburgh,
Pa. (4.4%), has the highest share, followed by Atlanta, Ga. (4.2%) and Richmond, Va. (3.7%).
Short Commutes
For college graduates who may be
accustomed to walking to campus, the transition to work life after
college may come with longer commutes, however it doesn't always
mean sitting in hours of traffic. The top markets on the
Realtor.com® list have an average expected commute time
of 25 minutes in 2024, which is shorter than the city/town average
of 30 minutes. Notably, Overland
Park, Kan., boasts the shortest average commute time of 22
minutes. Bloomington, Minn. and
Scottsdale, Ariz. were not far
behind; both have an average commute time of 23 min.
Appealing Lifestyle
Classes are out for good, so why
not enjoy the fruits of college labor? Realtor.com®
measured how lively a town is using point of interest data provided
by Yelp to indicate an abundance of entertainment, shopping, and
lifestyle businesses. These businesses encompass a variety of
venues such as restaurants, cafes, bars, shops, theaters, comedy
clubs, and art studios. Among the top 10 markets, the number of
businesses per 1000 households ranged between 17.1 and 39.5.
Specifically, Beaverton, Ore.,
claimed the highest position within the top 10 list, with a ratio
of 39.5. Atlanta, Ga., with a
ratio of 27.5, and Scottsdale,
Ariz., with a ratio of 25.2 were closely behind.
For more information on the Realtor.com® Report on
Top Rental Market for Recent College Grads please visit
realtor.com/research.
Data Source and Methodology
For the purpose of the
research, we ranked 313 cities and towns with a population of more
than 75,000 that are located within the 50 largest metro areas.
Rent-to-income ratio: Rental data are studio, 1-bedroom, or
2-bedroom units advertised as for-rent on Realtor.com® between
April 2023 and March 2024 in the top 50 metros. Rental units
include apartments as well as private rentals (condos, townhomes,
single-family homes). Household income was sourced from 2024
Claritas estimates based on Census Bureau data. Rental vacancy
rates were the 2023 average vacancy rates calculated from Census's
Housing Vacancies and Homeownership Survey for each city/place's
surrounding metro area. Recent college graduates-friendly
occupations were those defined by the Bureau of Labor
Statistics, requiring a bachelor's degree but no prior experience.
The share of these occupations were then calculated using 2022 ACS
1-Year individual data for each city/place's surrounding metro
area. The stated forecasted unemployment rates are Moody's
Analytics projections of U.S. Bureau of Labor Statistics Local Area
Unemployment Statistics for each city/place's surrounding metro
area. The metro level online job posting index was sourced from
Indeed's Hiring Lab and we took the average index between
April 2023 and March 2024 The
share of recent college graduates was estimated using 2022 ACS
1-Year individual data. Recent college graduates were individuals
who were between 25 and 29 years old, earned a bachelor degree and
were not in school. The average commute time data was sourced from
2024 Claritas estimates based on Census Bureau data. Counts of
culture and lifestyle businesses were aggregated from Yelp's
November 2023 point of interest data
and are aggregated at the city/place level. The counts were then
normalized using 2023 Claritas city/place level household data.
About Realtor.com®
Realtor.com®
is an open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real estate
more than 25 years ago. Today, through its website and mobile apps,
Realtor.com® is a trusted guide for consumers,
empowering more people to find their way home by breaking down
barriers, helping them make the right connections, and creating
confidence through expert insights and guidance. For professionals,
Realtor.com® is a trusted partner for business growth,
offering consumer connections and branding solutions that help them
succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. For more information, visit
Realtor.com®.
Media Contact
press@move.com
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