21 Cities That Attract Newly-Minted College Graduates

Are the decisions recent college graduates make about where they choose to live and work predictors of the future strength of individual office markets?

A new analysis of talent hubs in 2024 by JLL suggests there’s at least a strong link.

“Understanding trends in graduate locations helps illuminate the future of the office market,” it stated. “Most new graduates will never relocate to a different metro area after establishing their career. These decisions, in many cases, reflect a multi-decade commitment to reside in that market, and gradually influence the quantity and quality of office that makes up a particular market.”

The class of 2024 finds itself caught in a tug-of-war between forces pushing them to choose remote work and rival forces pulling them back to the office as companies demand an onsite presence. This group, JLL noted, “will be the first graduating class since the onset of the pandemic that will predominantly be expected to regularly attend the office at the outset of their roles.” Office attendance can also benefit new graduates in establishing their careers by developing their skills, making them known to managers, and building social ties.

At the same time, graduates are also weighing the cost of living in considering where to locate once they’ve earned their caps and gowns. Proximity to universities, job availability, wages, and quality of life also affect the decisions of the 1.64 million-strong class of 2024 headed to office-centric roles.

JLL concluded that markets produce or attract talent fit two main categories. “Talent engines,” usually anchored by universities, produce a disproportionate number of graduates for their size. “Talent magnets,” major metros or large cities with strong job markets and broad social networks, attract them. True talent hubs have characteristics of both types.

“Two-thirds of 2024 grads settled in the 21 largest talent hubs, despite comprising just 43% of the overall U.S. population. By continuing to attract top-tier talent, these cities create a positive feedback loop, which continues to drive innovation and elevated productivity,” the report said.

Even though the job market for 2024 graduates was weaker than in previous years in every major city, those metros with a history of attracting graduates did better in providing job opportunities.

The nation’s top 21 talent hubs in 2024 were New York, Los Angeles, San Francisco Bay Area, Boston, Chicago, Washington, DC, Atlanta, Philadelphia, Seattle/Puget Sound, Houston, Dallas-Fort Worth, Austin, Denver, Miami/South FL, San Diego, Phoenix, Raleigh-Durham, Orlando, Charlotte, Detroit, and Pittsburgh.

In each case, these hubs attracted significantly more graduates than their share of the overall population would suggest. New York, in particular, outperformed, adding 47,804 newly degreed individuals.

The analysis revealed that 77% of graduates of “elite” universities in 2024 – those ranked in the top 20 nationally – moved to the top 10 gateway markets, compared to just 44% of all graduates.

However, new graduates also paid close attention to the cost of living in deciding where to settle. The average cost of living in markets that saw a growing share of graduates in 2024 was 103.5, compared to an average of 114.9 for markets that saw their share of grads decline against the 10-year average, the report found. In every region, many graduates selected smaller markets as their home base. The share choosing tertiary markets rose to 13.1% compared to a 12.7% 10-year average, while both secondary and gateway markets fell slightly.

Many with newly minted degrees and in search of affordability found a good compromise in suburban living. Nationally, the share of those heading for a principal city fell from 65.1% to 62.8%, while 38,000 more moved to the suburbs than in a typical year.

Employer demands mean this is not an option for all. “A much lower share of entry-level [office-centric] roles are advertised with remote optionality,” the report noted.