Class of 2025, Start Packing: These 10 Cities Are the Ultimate Grad-Friendly Rental Markets
- Austin, Texas ranks first with the lowest rent-to-income ratio and a booming tech scene
- Minneapolis, Minn., and Raleigh, N.C., offer both high job availability and short commutes
- Richardson, Texas is a new entry with growing career opportunities
Just in time for graduation season, Realtor.com® has released its 2025 list of the Top Rental Markets for Recent College Grads, highlighting the cities where new degree holders are most likely to find an affordable place to live, land a solid first job, and still have money left for late-night tacos (or pizza). Coming in at number one? Austin, Texas. And, it’s not because the city is home to our new HQ!
“This year’s rankings reflect a rental landscape shaped by falling rents and potentially shifting job markets,” said Danielle Hale, chief economist at Realtor.com®. “We looked at where young people can launch their careers without sacrificing lifestyle, and the results include a mix of markets from Texas to Minnesota to Georgia. 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.”
The list, which features Austin, Texas; Raleigh N.C.; and Overland Park, Kan., in the top three slots alongside other burgeoning markets, was compiled using a number of factors that are top of mind for recent college graduates like rent affordability, job availability, commute time, social amenities, and the local share of recent college grads.
Top Rental Markets for Recent College Graduates
| Rank | Market | Rent-to- Income Ratio | Rental Vacancy Rate | College Grad Friendly Occupations | Forecasted Unemployment Rate | Indeed Hiring Index | Share of Recent College Grads | Average Commute Time | Location Score (out of 10) |
| 1 | Austin, TX | 18.9 % | 8.2 % | 29.4 % | 3.6 % | 114 | 4.6 % | 25 min | 3.9 |
| 2 | Raleigh, NC | 20.0 % | 9.0 % | 30.4 % | 3.3 % | 113 | 3.9 % | 25 min | 2.4 |
| 3 | Overland Park, KS | 20.6 % | 9.2 % | 25.5 % | 4.2 % | 114 | 4.0 % | 22 min | 3.9 |
| 4 | Minneapolis, MN | 19.7 % | 5.2 % | 27.3 % | 3.7 % | 96 | 6.3 % | 24 min | 4.7 |
| 5 | St. Louis, MO | 20.8 % | 8.0 % | 25.1 % | 4.0 % | 114 | 4.9 % | 25 min | 4.3 |
| 6 | Richmond, VA | 23.2 % | 8.2 % | 25.3 % | 3.3 % | 126 | 5.5 % | 23 min | 3.1 |
| 7 | Pittsburgh, PA | 22.3 % | 8.7 % | 24.3 % | 4.1 % | 113 | 5.7 % | 25 min | 4.8 |
| 8 | Scottsdale, AZ | 22.5 % | 7.9 % | 23.0 % | 3.7 % | 126 | 4.7 % | 23 min | 4.0 |
| 9 | Richardson, TX | 22.4 % | 8.9 % | 24.4 % | 4.0 % | 112 | 4.0 % | 26 min | 4.6 |
| 10 | Atlanta, GA | 24.1 % | 9.3 % | 24.7 % | 4.1 % | 124 | 5.3 % | 29 min | 4.9 |
Budget-Friendly Rent Without Sacrificing Quality of Life
Cash-strapped graduates can find relief from high housing costs in this year’s top markets. Austin leads the list with the lowest rent-to-income ratio (18.9%), which reflects the share of gross income typically spent on housing costs. A lower ratio means a smaller portion of a household’s monthly paycheck goes toward rent, which is a great thing!
After Austin, the next two cities with the lowest rent-to-income ratios are Minneapolis, Minn., (19.7%) and Raleigh, N.C. (20.0%). On average, grads in the top 10 markets spend just 21.5% of their income on rent, well below the national average and comfortably within the 30% affordability benchmark.
Real Job Opportunities and Career Growth
Markets like Raleigh, N.C. (30.4%) and Austin, Texas (29.4%) offer a high share of jobs requiring a bachelor’s degree but no prior experience. And, according to the Indeed Job Index, which tracks job openings relative to pre-pandemic levels, metros like Richmond, Va., and Scottsdale, Ariz., scored 126, indicating 26% more opportunities than before the pandemic. For grads, that means strong potential for career growth.
More Vacancies = More Choices (and Leverage)
Atlanta and Overland Park, Kan., lead in rental availability with vacancy rates over 9%, giving new renters plenty of options and bargaining power. Many of these markets are also seeing new multifamily housing construction, meaning more inventory and less competition.
These cities aren’t just about numbers, they offer buzzing restaurants, music scenes, networking opportunities, and quick commutes. For example, Overland Park, Kan., boasts a breezy 22-minute average commute, and Minneapolis leads in share of recent grads (6.3%), ideal for building both careers and social circles.
For more information on the rental markets and to look for a new place, especially if you’re a new grad, head to https://www.realtor.com/rentals/.
SOURCE Realtor.com
