(NewsNation) — The job market is tough for recent college grads, but cities like Austin and Raleigh still offer a promising mix of affordability and opportunity, a new report shows.
Realtor.com analyzed more than 300 cities and towns to find the most “grad-friendly” rental markets in 2025, weighing factors like housing affordability, rental availability and job opportunities.
Austin, Texas, topped the list for the second year in a row thanks to its low rent-to-income ratio (18.9%) and high share of jobs (29.4%) that require a bachelor’s degree but no prior 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.
