These Rental Markets Favored for College Grads
Bloomington, Minn., Pittsburgh, and Raleigh also had positive lifestyle attributes.
When looking for the ideal job market combined with preferred lifestyles, this year’s college graduating class could likely choose Austin as the best place to live, according to a new study by Realtor.com.
The report found the Lone Star State’s capital followed by Bloomington, Minn., and Pittsburgh as the top choices.
Danielle Hale, Chief Economist of Realtor.com® said renting is more affordable than buying in the short run and can be a great option, “especially when life right after college is usually marked by navigation of uncertainty and personal and professional growth.”
Realtor.com’s report also weighed the rent-to-income ratio for households aged between 25 and 34. For them, renting represents the portion of their typical gross income allocated to housing expenses.
The study determined that a rent-to-income ratio of 22.5% was typical, on average.
Among the top 10 markets, the rent-to-income ratio spans 19.9% to 26.7%. Specifically,
Bloomington’s came in at 19.9%, making it the most affordable top-ranked rental market within the top markets.
Kansas City metro markets Overland Park and St. Louis were 20.7%), and 21.7%, respectively.
The rental vacancy rate measures the not-currently-lived-in supply of homes for rent and can be a proxy for how easily potential renters could find a place to live.
“A higher rental vacancy rate means renters could have an abundance of rental properties to choose from and may wield greater bargaining power when negotiating with landlords,” Realtor.com said.
Austin ranked tops in this category, followed by the Atlanta–Sandy Springs–Roswell metro (8.7%), and Raleigh, NC.
The study also tracked markets where the share of recent college graduate-friendly occupations.
Austin fared best as it is home to many tech-fueled company offices, including Realtor.com, followed by Raleigh and Bloomington.
Living in markets with a high share of recent college graduates can benefit recent graduates by providing a supportive environment, networking opportunities, and access to entry-level jobs, the report surmised.