KEY TAKEAWAYS
- Recent college graduates face a softening labor market as employers hesitate to hire amid tariff uncertainty.
- They also have to contend with rent prices that surged in the wake of the pandemic.
- Places like Austin, Raleigh and Minneapolis offer low rent-to-income ratios and a job market outlook suited for new graduates, a new report showed.
Some cities are better than others for recent graduates facing an uncertain job market and heightened rental costs, according to a recent report.
It has been harder for recent graduates to find a job as business leaders are slow to hire amidst the uncertainty of President Donald Trump’s tariffs. In addition, many graduates expect a much higher salary than they will likely get amid heightened costs, such as rent prices, which surged in the wake of the pandemic.
Recent graduates looking to relocate somewhere more affordable and with a strong labor market for those with a newly earned degree should consider places like Austin, Raleigh and Minneapolis, a report from Realtor.com found this week.
Realtor.com utilized economic data from major metropolitan areas to rank the best rental markets for recent graduates. Markets better suited for recent graduates typically had lower rent-to-income ratios and forecasted unemployment rates, as well as higher rental vacancy rates and a broad offering of jobs suited to recent college graduates.
| Rank | Market | Rent-to-Income Ratio | Rental Vacancy Rate | Recent College Grad-Friendly Occupations | Forecasted Unemployment Rate |
|---|---|---|---|---|---|
| 1 | Austin, Texas | 18.9% | 8.2% | 29.4% | 3.6% |
| 1 | Raleigh, N.C. | 20.0% | 9.0% | 30.4% | 3.3% |
| 3 | Overland Park, Kan. | 20.6% | 9.2% | 25.5% | 4.2% |
| 4 | Minneapolis, Minn. | 19.7% | 5.2% | 27.3% | 3.7% |
| 4 | St. Louis, Mo. | 20.8% | 8.0% | 25.1% | 4.0% |
| 6 | Richmond, Va. | 23.2% | 8.2% | 25.3% | 3.3% |
| 7 | Pittsburgh, Penn. | 22.3% | 8.7% | 24.3% | 4.1% |
| 8 | Scottsdale, Ariz. | 22.5% | 7.9% | 23.0% | 3.7% |
| 9 | Richardson, Texas | 22.4% | 8.9% | 24.4% | 4.0% |
| 10 | Atlanta, Ga. | 24.1% | 9.3% | 24.7% | 4.1% |
Renters between the ages of 25 and 34 pay less for rent in these top markets compared to the national average. These renters typically pay well below the standard benchmark for consumers, which is 30% of their income on housing.
Additionally, higher rental vacancy rates mean recent graduates will have more options when looking for housing.
Recent college graduates in these markets will likely find more jobs requiring a bachelor’s degree but no prior experience. The forecasted unemployment rate for the majority of these markets is lower than or equal to April’s national average of 4.2%, the most recent figure from the Bureau of Labor Statistics.
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