AUSTIN – (By Dale King, Realty News Report) – The Class of 2025 just completed their years of classroom studies and have left familiar campuses behind to begin a new mission in life – to establish careers and find suitable places to live.
In its just-released document listing the “Top 10 Rental Markets for Recent College Grads,” the real estate website dubbed Austin the Number 1 U.S. city for newly launched degree holders to kick off their careers and plant the seeds of a new lifestyle in a location that’s affordable, packed with fitting job opportunities, an active social scene and lots of networking chances, particularly with other recent grads.
The roster which places Austin, Raleigh, N.C. and Overland Park, Kan. in the top three slots alongside seven other burgeoning markets was assembled by combining matters that normally top the necessities list of recent college graduates – such as rent affordability, job availability, commute time, social amenities and the local share of other grads who have just arrived with sheepskins in hand and ambition in mind.
For the second straight year, Austin ranks first with the lowest rent-to-income ratio (18.9 percent) and a booming tech scene, says the Realtor.com report. The rent-to-income ratio 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 into the landlord’s pocket.
Also helping the Lone Star State’s capital take top honors is its hefty share of jobs fit for recent graduates — occupations requiring a bachelor’s degree but no prior experience. In Austin, 29.4 percent of positions meet these criteria.
The report says Raleigh and the city of Minneapolis, which ranked fourth in the top 10, also posted admirable job availability projections, with expected unemployment rates of 3.3 and 3.7 percent, respectively. Austin is no slouch, though, with a predicted jobless rate of 3.6 percent.
Another Texas community, Richardson, ranks Number 9 on the Top 10 list. “It’s a new entry with growing career opportunities,” says Realtor.com. A Dallas suburb, Richardson was cited for its economic stability, abundance of housing and variety of appealing culinary offerings, among other enticing qualities.
“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.”
Budget-friendly rents accessible
Graduates whose budgets are a bit strained can get a measure of relief from high housing costs in this year’s top 10 markets, the report says.
After Austin, the next two metros with the lowest rent-to-income ratios are Minneapolis (19.7 percent) and Raleigh. (20.0 percent). On average, grads who find a leasable location in the top 10 spend 21.5 percent of their income on rent, well below the national average and easily within the guideline that says renters should not spend more than 30 percent of their income for monthly rent payments.
Job prospects and career growth
According to the Indeed Job Index, which tracks job openings relative to pre-pandemic levels, other metros in the top 10 such as Richmond, Va., and Scottsdale, Ariz., scored 126, meaning there are 26 percent more opportunities for employment now than before the pandemic. “For job-seeking graduates, that means strong potential for career growth.”
The Indeed Job Index score for Austin is 114 and, for Richardson, 112,
More vacancies equals more choices
Top 10 picks Atlanta and Overland Park, Kan., lead in rental availability with vacancy rates of more than 9 percent, “giving grads plenty of options and bargaining power.”
The vacancy rate for rentals in Austin is 8.2 percent and in Richardson, 8.9 percent.
“Many of these markets are also seeing new multifamily housing construction,” says the report, “meaning the market has more inventory and the competition is less intense.”
To compile its report, Realtor.com ranked 312 cities with populations of 75,000 or more within the 50 largest metro areas of the U.S. Vacancy rates are based on 2024 calculations.
June 9, 2025 Realty News Report Copyright 2025
Photo credit: Ralph Bivins, Realty News Report, Copyright 2025
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File: Austin Tops Graduate Friendly List Lone Star State Austin Tops Graduate Friendly List Multifamily