- Finding an affordable rental can be challenging for anyone—but especially for recent college graduates getting their footing typically at a lower salary. Realtor.com, however, released its 2025 list of the best markets for recent college graduates based on average rental costs, unemployment rates, commute times, and several other factors.
Thanks to tariffs and inflation, pretty much everything feels as if it’s getting more expensive. Meanwhile, housing costs have been increasing steadily since the pandemic: rent is up about 30%, according to CoreLogic.
As of May 25, the average monthly rent in the U.S. is $2,100, according to Zillow, but the average salary is just above $63,000, SoFi data shows. That means some Americans are spending about 40% of their income on rent each month, which is above the recommended 30%.
This can be especially debilitating for recent college graduates who likely make at or below the average U.S. salary. In fact, a Bank of America report showed Gen Zers are the generation most squeezed by higher rents. But there are still many cities that can be affordable for people who just earned their degree. Plus, affordability is starting to improve with rents declining in some markets.
On Tuesday, Realtor.com released a list of cities they dub “the ultimate grad-friendly rental markets” based on factors like rent-to-income ratios, rental vacancy rates, the number of jobs suitable for recent college graduates, unemployment rate, and average commute time. The cities that made the list reach nearly coast-to-coast.
“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,” Danielle Hale, chief economist at Realtor.com, said in a statement.
Austin, Texas, claimed the No. 1 spot with the lowest rent-to-income ratio at 18.9%—which means renters are spending less of their income on rent each month. Austin was also ranked well for having a high share of jobs requiring a bachelor’s degree but no prior experience. Realtor.com’s ranking also takes into consideration Indeed’s Hiring Index, which tracks job openings relative to pre-pandemic levels.
The top 10 cities for recent college grads, according to Realtor.com’s ranking, are as follows, along with their respective median rent:
- Austin, Texas ($1,504)
- Raleigh, N.C. ($1,524)
- Overland Park, Kan. ($1,351)
- Minneapolis, Minn. ($1,528)
- St. Louis, Mo. ($1,335)
- Richmond, Va. ($1,502)
- Pittsburgh, Pa. ($1,461)
- Scottsdale, Ariz. ($1,530)
- Richardson, Texas ($1,472)
- Atlanta, Ga. ($1,604)
According to Realtor.com, renters can save 7% by renting in these markets, which have twice as many recent grads as compared to the top 50 metros across the U.S.
Still, not all of these rental markets are perfect by any standard.
“While these cities ranked highly overall, many still have strengths and weaknesses that require prospective renters to consider trade-offs between the availability and affordability of rentals, the strength of the employment market, and access to lifestyle,” according to Realtor.com
On the other end of the spectrum, Moody’s Analytics CRE last May compiled a list of the most rent-burdened cities in the U.S. Unsurprisingly, the list included New York, Miami, Los Angeles, and Boston. Renters can expect to spend more than 30% of their income each month on rent in those cities.
Plus, an August 2024 study by personal finance technology company Self Financial found the typical American renter can expect to pay more than $333,000 during their time as a renter, including bills or additional expenses. The analysis used Zillow data to calculate median monthly rent and utilities by state, RentCafe data for average utility costs, and Insure.com for renters’ insurance estimates. The study assumes people start renting at age 22 and buy their first home at 35.
But at this point, renters could expect to spend even more, considering younger generations are delaying major life milestones like getting married and buying a house.
“Delays in household formation will keep people as renters for longer periods of time,” Nikki Beauchamp, an associate broker at Sotheby’s International Realty in New York, previously told Fortune.
