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(NewsNation) — The job market is challenging for recent college graduates, yet cities such as Austin and Raleigh continue to present a compelling combination of affordability and opportunities, according to a new report.
Realtor.com examined over 300 cities and towns to identify the most “grad-friendly” rental markets for 2025, evaluating factors such as housing affordability, rental availability, and job prospects.
Austin, Texas, ranked first on the list for the second consecutive year, due to its low rent-to-income ratio (18.9%) and a significant proportion of jobs (29.4%) that require a bachelor’s degree but no previous experience.
Raleigh, North Carolina, and Overland Park, Kansas, ranked second and third, followed by Minneapolis, Minnesota, and St. Louis, Missouri.
“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.
On average, graduates in the top 10 markets spend just 21.5% of their income on rent, well below the commonly accepted 30% affordability benchmark. This year’s top cities also have a lower average unemployment rate (3.8%) compared to the 50 largest metros (4.1%).
Cost of living and job opportunities will likely be top priorities for the Class of 2025, which is entering the rockiest job market since 2021.
Here’s Realtor.com’s top 10 list for 2025 along with some of the key metrics the report considered.
1 – Austin, TX
Median Rent: $1,504
Rent-to-Income Ratio: 18.9%
Rental Vacancy Rate: 8.2%
College Grad Friendly Occupations: 29.4%
Forecasted unemployment rate: 3.6%
2 – Raleigh, NC
Raleigh’s downtown skyline is seen from The Dillion’s ninth floor lobby terrace open to the public January 02, 2019 in Raleigh, NC. The convention center’s Shimmer Wall is seen at the far right.
(Photo by Katherine Frey/The Washington Post via Getty Images)
Median Rent: $1,524
Rent-to-Income Ratio: 20.0%
Rental Vacancy Rate: 9.0%
College Grad Friendly Occupations: 30.4%
Forecasted unemployment rate: 3.3%
3 – Overland Park, KS
Median Rent: $1,351
Rent-to-Income Ratio: 20.6%
Rental Vacancy Rate: 9.2%
College Grad Friendly Occupations: 25.5%
Forecasted unemployment rate: 4.2%
4 – Minneapolis, MN
Median Rent: $1,528
Rent-to-Income Ratio: 19.7%
Rental Vacancy Rate: 5.2%
College Grad Friendly Occupations: 27.3%
Forecasted unemployment rate: 3.7%
5 – St. Louis, MO
Median Rent: $1,335
Rent-to-Income Ratio: 20.8%
Rental Vacancy Rate: 8.0%
College Grad Friendly Occupations: 25.1%
Forecasted unemployment rate: 4.0%
6 – Richmond, VA
Median Rent: $1,502
Rent-to-Income Ratio: 23.2%
Rental Vacancy Rate: 8.2%
College Grad Friendly Occupations: 25.3%
Forecasted unemployment rate: 3.3%
7 – Pittsburgh, PA
Median Rent: $1,461
Rent-to-Income Ratio: 22.3%
Rental Vacancy Rate: 8.7%
College Grad Friendly Occupations: 24.3%
Forecasted unemployment rate: 4.1%
8 – Scottsdale, AZ
Median Rent: $1,530
Rent-to-Income Ratio: 22.5%
Rental Vacancy Rate: 7.9%
College Grad Friendly Occupations: 23.0%
Forecasted unemployment rate: 3.7%
9 – Richardson, TX
Median Rent: $1,472
Rent-to-Income Ratio: 22.4%
Rental Vacancy Rate: 8.9%
College Grad Friendly Occupations: 24.4%
Forecasted unemployment rate: 4.0%
10 – Atlanta, GA
Median Rent: $1,604
Rent-to-Income Ratio: 24.1%
Rental Vacancy Rate: 9.3%
College Grad Friendly Occupations: 24.7%
Forecasted unemployment rate: 4.1%
For more on Realtor.com’s methodology, read here.
As a new class of graduates prepares to enter the job market, the latest consumer confidence numbers have turned somewhat positive after five straight months of declines.
The Conference Board said Tuesday that its consumer confidence index rose 12.3 points in May to 98, up from April’s 85.7, its lowest reading since May 2020.
A measure of Americans’ short-term expectations for their income, business conditions and the job market jumped 17.4 points to 72.8, but remained below 80, which can signal a recession ahead.
The Labor Department earlier this month reported that U.S. employers added a surprising 177,000 jobs in April and the unemployment rate remained at a low 4.2%.
Write-in responses to the survey showed that tariffs are still consumers’ biggest concern. Inflation is also still weighing on their minds, though some noted that inflation seemed to be easing, along with gas prices.
The Associated Press contributed to this report.
