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
AUSTIN, Texas, May 27, 2025 /PRNewswire/ -- 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, Texas
18.9 %
8.2 %
29.4 %
3.6 %
114
4.6 %
25 min
3.9
2
Raleigh, N.C.
20.0 %
9.0 %
30.4 %
3.3 %
113
3.9 %
25 min
2.4
3
Overland Park, Kan.
20.6 %
9.2 %
25.5 %
4.2 %
114
4.0 %
22 min
3.9
4
Minneapolis, Minn.
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, Penn.
22.3 %
8.7 %
24.3 %
4.1 %
113
5.7 %
25 min
4.8
8
Scottsdale, Ariz.
22.5 %
7.9 %
23.0 %
3.7 %
126
4.7 %
23 min
4.0
9
Richardson, Texas
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/.
Methodology For the purpose of the research, we ranked 312 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 2024 and March 2025 in the top 50 metros. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). Household income was sourced from 2025 Claritas estimates based on Census Bureau data. Rental vacancy rates were the 2024 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 2023 ACS 1-Year individual data for each city/place's surrounding metro area.
The stated unemployment rates shown are Moody's Analytics' most recent forecasts for 2025 annual rate, based on U.S. Bureau of Labor Statistics Local Area Unemployment Statistics for each city'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 2024 and March 2025. The share of recent college graduates was estimated using 2023 ACS 1-Year individual data. Recent college graduates were individuals who were between 25 and 29 years old, earned a bachelor degree or above and were not in school. The average commute time data was sourced from 2025 Claritas estimates based on Census Bureau data. Location scores for each place were aggregated from the most recent property-level assessments made by Local Logic pertaining to the availability of shopping, restaurants, cafes, and nightlife near each known property in the place.
About Realtor.com® Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
